How can I help my child learn about the value of saving?

How can I help my child learn about the value of saving?

A reasonable as well as timeless question is: “Until when will my child spend the pocket money carefree ?” Our desire and goal is for our child to understand the value of savings. To learn that proper management and saving resources is the way to his financial independence and future prosperity. But how are we going to be able to help it in this challenge? Let’s start with some basic assumptions about all of us, young and old:

Saving isn’t just about money: Certainly money is inextricably linked to the concept of saving. From a young age we remember that we often accepted all sorts of piggy banks, either as gifts, or as toys, or even as a reward for that well-written exhibition of ours at school. But in life we often have to save other resources, such as our energy and time. The basic rules of good management and saving also apply when we want to save other alternative but equally important resources. 

Good organization and plan are necessary elements: Good planning must have clear goals. Also crucial is the way we make decisions and set priorities. So we can see, for example, where our money is going but also find out what we actually save each month. It is important to keep in mind that it is not so much about how much money we earn, but how we spend and save what we earn. 

Separating desires from needs is essential: Saving is achieved only when we acquire the right attitude and the right habits. This is done only when we decide that our future needs are more important than our current desires. In other words, when we make saving resources a priority. It can, for example, by satisfying our child’s desire to acquire an even more modern mobile phone andmake him/her very happy, at least for a while. However, the family’s need for common and quality time, as in short vacations, could perhaps be covered by this money, giving everyone the opportunity to enjoy the interaction that the demanding everyday life deprives us of.

It may be that perceptions like ‘’we only live once” or “live in the present’’ are particularly popular among young people – and not only. But they don’t have to come into head-on conflict with the philosophy of prevention involved in savings. Proper preparation to face future costly challenges of our lives, whether they are pleasant (such as buying a home) or unpleasant (such as a serious health issue), is essential. Managing these challenges relies heavily on our ability to save. However, much remains to be done in this area. Unfortunately recent measurements have shown a very low saving to GDP ratio in many countries of the European Union. So let’s all try together to change the culture of saving for the better for the sake of our children.