August 25, 2021
How to Get People to Like Saving from an Early Age
People often struggle with saving because they were not equipped with financial literacy growing up. Therefore, if you have kids or young adults in your home, it would be best to teach them financial literacy and to get them to like and to start saving at a young age. It is vital to be smart about money and to make saving a habit because set-aside money can come in handy in an emergency. Here are a few ways to get people to enjoy saving from a young age.
Set a Savings Goal
Explaining the importance of saving to kids may be a bit difficult, and they may not understand why it is crucial. Therefore, you should reinforce a savings culture by encouraging your child to set a savings goal. For instance, if your kid wants something worth $100 and you are often given a weekly allowance of $10, you can help break the goal down for your child. Help him or her see how much it’s necessary to save and how long it will take to reach the $100 goal. When you reinforce these ideas at a young age, saving becomes easier as the kids grow up. The same applies to young adults.
Differentiate Between Wants and Needs
It is vital to help an individual determine what a want is and what is a need. Kids will have a better understanding of why saving is valuable when they can distinguish between the two. For instance, needs include healthcare, shelter, food, education, and basic clothing. On the other hand, wants are items like a new phone, designer clothes, or going out with friends. Essentially, wants are things that can wait when it comes to spending. Instead of instantly buying something you want, you can save for it.
Track Their Spending
Another great tip that will help people to appreciate saving is teaching them how to track where their money goes and what it is spent on. This makes it easier to break down their expenditures, to know where they can cut back, and to realize how much they can save in a month. Breaking down how they spend their money is so eye-opening. It is a great way to modify spending patterns and instead start saving toward a goal, which means your child will eventually start to like saving.
If you are teaching your kids about saving and want them to like doing it, you need to motivate them. For instance, if they have set a specific saving goal but feel lazy, offer to match up to their savings effort. You could offer to add a certain amount or a percentage. This is a great way to motivate them, and it also naturally reinforces a savings culture. Eventually, they will like saving even without the aspect of you giving them extra money.
It helps to discuss money because people get to learn through conversations. To get people to like saving, you need to keep having conversations about savings. This could be an everyday thing or something you do weekly. Kids, young adults, and even adults will pick up on the conversation. The more conversations you have, the more they will like the idea of saving.
There are multiple other ways you can get people to like saving. One of the best ways is starting early and equipping them with financial knowledge.