Saving money is a discipline that you can help develop in your kids early on.
When they are adults they’ll be glad they gained such a necessary habit.
It’s nearly June, and you have finally hit your goal for saving.
Only a week later, while getting your routine oil change, the service advisor comes out with the dreaded clipboard.
He goes on to tell you that your car needs maintenance.
I’ll just call Ray Ray from around the way. He can fix anything on wheels.
Then you get news from Ray that the manufacturers put the car together in a way that only they can fix it, which is very common these days.
But you know that if you pay the manufacturers price, half of savings fund is gone!
Here is the reality:
Saving is a very important financial habit that needs to be developed.
And a savings fund is there for just that — an unexpected expense.
While it may be frustrating to know that you just hit your goal of saving, choose to give yourself a pat on the back.
Know that you developed a habit and you hit your goal.
Even though the unexpected expense came sooner than you would have liked, you were actually prepared for that day!
Had you not had a savings fund, you’d be pulling money from your regular savings, your regular budget, or getting into more debt.
When you have a savings fund, you give yourself a chance to get ahead and not take steps backward every time that life hits.
Some of us didn’t learn about saving until adulthood, but how much better off would we have been if we had gained this discipline much earlier in life?
The habit of saving is an important one to instill in your kids.
If they learn to save at a young age, they will be much better off in the long run.
3 Ways To Teach Your Kids To Save
1)Take your kids to your local bank and have them sit with your personal banker and help them open a savings account.
Have the banker explain the functions of that account. This will allow your child to feel a sense of ownership over their new savings account. Be sure to make regular trips to the bank to make a deposit.
2)Give your kids an allowance every two weeks. Have them designate a percentage that will go away for the savings account.
To add more intrigue, label the savings account (i.e. emergency fund, school supplies account, vacation account).
3)Establish a deadline for a specific amount to be saved.
For example, if you plan on taking a family vacation during the summer, establish that you child must have $100 saved for their spending money by that time. Help them develop a game plan on reaching their goal.
By teaching your kids to save, you are helping to develop a lifelong habit and preparing them to do what you did: being prepared for the unexpected expense and beyond.