Some of us enjoy exercising our saving muscles more than others. When we don’t it’s because we are Primary Spenders. But just because you may not like to exercise it, you should. Just like our physical muscles can get bigger, teach your kids to exercise their Saver Muscle. Don’t make the mistake of giving your kids pocket money or money for doing certain jobs where they are allowed to spend it all, they need to learn to save, so they don’t get into trouble as adults.
1. Start Small – Just like everything else in life you need to start small and work your way up. Don’t encourage them to save every penny they get from Grandma and Grandad. Help them take a third of the money and save it for a rainy day. If you have a child with a Saver Money Personality they will want to save every penny; if you have a Spender child they will think you are nuts for not enjoying the money on your next trip to The Warehouse or Dick Smith.
2. Make it Fun – Create a payoff for saving money. As adults we save for our homes, cars, and vacations. So, if you are trying to turn your child into a Saving Machine, make it fun and let them set a goal and meet it. It doesn’t have to be anything big, but make it fun for them to see how saving can really pay off. Then as they get older stretch it out so they do start to save for a larger ticket item, this is so important and where many fail.
I have seen many people that either can’t save or once they have $1000.00 in their account they want to go and blow it, then they are borrowing money for cars, holidays, household appliances because they have not been taught to save for big things, they need to be familiar with the feeling I need to wait and SAVE for it. It’s never too late to start even if they are now teenagers begin today
As parents we teach our children many things, Morals, saying please & thank-you and the likes, how to share with others, the importance of doing their homework, doing chores around the house, cooking. Money skills is an area that also can not be overlooked or ignored no matter how rich or poor they will be in life they will need this skill. Its part of the joy of parenthood.