# Encouraging savings habits from a young age



## Thrifty (10 Jul 2007)

I notice more (maybe it's reading this site) that more people are getting into debt and some of this is just arising from living beyond their means. Having family and a few friends who are not the most careful when it comes to money matters i can't help wondering why given that my generation growing up were quite poor. My parents had the old fashioned approach to money - which was if you couldn't afford it you didn't buy it. This approach passed by some of my siblings and while realising money isn't everything it make's me wonder what their children's attitudes will be about money matters. While not my place i would be interested to hear how others encourage a healthy attitude to money and saving especially in the 'have everything now' culture.


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## ClubMan (10 Jul 2007)

My parents always insisted that whenever I was earning (no matter how little) some portion of the earnings were handed up for houshold expenses. I'm not sure how widespread the practice was or is but it seems like a good way to illustrate to kids that they need to pay their way in life.


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## pinkyBear (10 Jul 2007)

I read an article once - it could have been on AAM or The independant where by the journalist was teaching her child to have an awareness of saving and money. She set up the National Bank of Mam and Dad, and every week a part of the childs allowance was put into this bank..The child even had their own deposit book!!!


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## GeneralZod (10 Jul 2007)

I had my first piggy bank (actually a henry hippo) from a young age.  A post office book and bank account too. I'm an Ulster Bank lifer, although I had accounts with almost all of the banks as a kid. I used to love doing compound interest calculations. Still do in fact.


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## capall (10 Jul 2007)

people seem to be born savers or spenders

Some kids hoard their money some can't hold onto it within the same family

I guess as parents you try and teach the spenders the value of saving and the hoarders the need to spend sometimes


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## South (10 Jul 2007)

I prefer to hang around with spenders, they are a bit more fun!!


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## pc7 (10 Jul 2007)

i was a teenage spender, but had to pay housekeeping when i started to work which was a good thing, always had a credit union account, but wasn't til i hit 23/24 finally started getting my act together. Think spending and being broke is part of being young, live for today and all that!  bah humbug !


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## sulo (10 Jul 2007)

Capall makes a very good point... I have always saved, but my sister on the other hand.. well shes useless with money... Spend Spend Spend.

My mother thought us both v. well... both had the Henry Hippo / we also did saving stamps (stamps with nuts on them).. saving like squirrels in the post office.... we both had to give a portion of our earnings - from our very first part time job...right up until we left home... 

All very valuable lessons, which Im afraid, were lost on my sister.

I think you're either a saver or a spender....


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## GeneralZod (10 Jul 2007)

Oh yeah the stamps. Had them too. My sister was the same as yours in that respect. We each got pocket money. I'd save up for the stuff I wanted but she never could.


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## sulo (10 Jul 2007)

Sounds very familiar!  I think I need to spend more mind you... I did my ssia, and its sitting in Rabo - Im not sure what to do with it... I did go to venice with my other half, and went on a bit of a shop... but thats it..

My other half, is a bit like my sister... hes a spender... I've only recently convinced him to start saving.... which only took me 4 years.


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## ClubMan (10 Jul 2007)

GeneralZod said:


> I'd save up for the stuff I wanted but she never could.


But did she do without or get the stuff some other way in spite of not saving?


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## GeneralZod (10 Jul 2007)

I think the innate spender/saver thing is valid. 

My parents did the right things to encourage saving but my dad especially is fundamentally a spender, happiest while planning the next mad holiday taking in half a dozen countries.



> But did she do without or get the stuff some other way in spite of not saving?



Not that I remember. That would have caused a big fight


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## ClubMan (12 Jul 2007)

This article from the _UK Times _might be pertinent:

Children to get lessons in money

Was there also some plan here in _Ireland _to introduce a personal finance module to the primary/secondary school curriculum?


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## Happy Girl (13 Jul 2007)

Have 2 kids 11yrs + 7yrs. 11yr old gets 10euro pw and has a number of small jobs to do around the house during the week. 7yr old gets 5euro and also has his jobs to do. Both save half their wages in the local credit union and I let them come down and lodge it themselves as they feel so adult doing it. The other half they keep and save up for whatever (at the moment it's the new Harry Potter book). I feel they have a good understanding of the saving/spending process (will confirm that in 20yrs time when either of them are being declared bankrupt!!!!!!!!!!!).


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## Thrifty (13 Jul 2007)

Hi, thanks for the replies. I've felt before the saver/ spender thing seemed to be kindof an automatic thing although i don't say it to my sister as it would just be an excuse for her to spend money (not her fault). I do feel however that it doesn't mean you can't learn to budget. I think the new addition to the curriculum in England is a great idea. It's a far more important and practical life skill that algebra. By the way saver's does not = less fun!!!
Happy girl your approach would be very much the one i'd like to take and agree Clubman with getting older children to contribute something however small- feel it gives them also a sense of responsibility


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## SidTheDweeb (15 Jul 2007)

I don't agree with the saver/spender thing. There is varying degrees as with most things in life. Your perception of it may lead you to believe there is such a divide, but that's just relative to your own position.


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## z109 (15 Jul 2007)

I also sort of agree with Sid, I was very much a spender until I met my wife, and would now firmly see myself as a saver. The change in me doesn't mean that I don't have the urge to spend, just that I take longer to do it, shop around more, and really have to convince myself that I need to do it before buying anything. I think, therefore, that you can teach/learn a set of rules for spending that will stand you in good stead.

Having had no financial advice from my parents, I can't comment on whether I would have learned from it, but I can't help but feel that I would be a wealthier man now if someone had given me more of the basics when I was younger.


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## aircobra19 (15 Jul 2007)

I think its a habit you get into, or fall out of, or are forced into, or not forced into. Depending on you life experiences. I would agree the basics should be taught in school.

I've noticed for quite a while people leaving well beyond their means. Or more accurately happy living/surviving with lots of debt so that can have what they want, even if they don't need it. Few are willing to make do these days.


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## franmac (15 Jul 2007)

ClubMan said:


> My parents always insisted that whenever I was earning (no matter how little) some portion of the earnings were handed up for houshold expenses. I'm not sure how widespread the practice was or is but it seems like a good way to illustrate to kids that they need to pay their way in life.


 
I agree with this and the amount of money involved was not important but it was a way preparing the offsprings for the cost of surviving outside the family home.


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## D8Lady (15 Jul 2007)

Clubman

"Was there also some plan here in _Ireland _to introduce a personal finance module to the primary/secondary school curriculum?"

I did budgeting in school. I did in Home Economics, Social & Scientific in secondary school. There was a module in on household budgeting, how to shop around, cook good meals on a budget, consumer rights etc in it. As a subject, its generally looked down on becuase, lets face it, ony girls do it.

D8L


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