I was seven years old then. My mother took me along with her to a big building. She told me it was a bank. She told me that she would save money in a box. After the accumulated money went over a hundred she would deposit the same in the bank.
“Why should we give our money to the bank?” I had asked innocently.
“That is because the bank will give interest upon our money.” She explained.
“What is interest?” I again asked her.
“Interest is additional money.” She replied.
The thought of getting additional money inspired me. But I had so many questions to ask to my mother. “What does the bank do with our money?” I asked my mother.
“The bank lends it to those who need it. It charges them interest on the loans advanced. It makes profits from the interests.”
“Mumma, can I also deposit money in the bank?” I asked her.
“Yes, my child. You can deposit the money. Save the money which I will give to you and we will deposit it in the bank.”
This small incident of visiting the bank along with my mother had a very deep impact upon me. It inculcated the habit of saving in me.
My mother would give me rupee or two and I would save it in my piggy bank. When the piggy bank was full, I would open it and count the coins. To my delight I would have saved a substantial amount of money, often more than a hundred. I would dance in glee that I had saved such a large amount. I would go to the bank and deposit it. I would get my passbook entered. I would be happy at the sight of interest accumulated on my savings.
That small incident changed my life for the good. Such was its impact. I grew up. I got a job. The habit of saving had become a part of my life by now. After my salary I would set aside a certain amount of money and only then withdraw money from my account. My deposits would fetch me interest.
That incident had inculcated regularity in my savings. My small deposits made a large amount in total. So while my friends and colleagues were busy hunting for loans, I could buy my own car and my own house out of my savings. All this is the impact of that incident in the bank.
Indeed that incident changed my life. It had a deep impact upon me. I was a child I did not know much about money matters. But I had learnt one important lesson. Wealth was not to be squandered but to be used wisely. Such was the impact of that incident.