Will you teach your children these important lessons about saving for the future?

Will you teach your children these important lessons about saving for the future?

When I was a boy my grandmother, or “mama” as she was affectionately referred to by everyone, taught me the important lesson of saving for the future. How many of these lessons will you pass on to your children?

1- Open a bank account in your child’s name: Mama was the one that helped me open up my first bank account. I remember walking into the bank and feeling so grown up even though I was no more than 10 or 11 at the time. Mama taught me the importance of saving for a rainy day.

2- Teach your children to save half of their paycheck: I remember later on when I was 15 and I got my first part time job shoveling snow in Richmond Hill NY. We had to shovel the sidewalks outside of the local banks in our area. It was hard work, but how satisfying it was to get my first paycheck! I had plans to cash it and put it in my wallet in case I saw something I wanted to buy later.

Mama just wouldn't have that. She knew that if the money was in my pocket the temptation would be there to spend it on impulsive items. And how right she was! I was an impulsive young man. Mama forced me to put half of my check in my savings account. That hurt at the time, however it was a powerful lesson that stayed with me the rest of my life. Learn to live on LESS than you earn so you can save for tomorrow.

3-Go home and think about it before spending your hard earned money: With half my money in my savings account, I reasoned,“at least I have the other half to spend”. But as you can imagine, Mama wouldn't stand for that either.

The other half of my check went in my top drawer at home. Mama said I could have an “allowance” of $2.00 to take with me

in my wallet. Two dollars! What was I going to do with $2.00! Mama explained that $2.00 was enough to get me by. If I really wanted to buy something that cost more than that I could always go home and get the money and come back and purchase it later.

What a wise woman! As you can imagine I rarely felt it was worth it to do so for such an impulsive purchase! The lesson? Teach your children to not to carry a lot of cash with them so they can't waste money on impulsive items. It's funny, I am 47 years old now and I still go home and sleep on it before making a purchase today.

4- Only buy what you can afford to pay off. Mama, taught me the importance of saving up for something. How satisfying it is for a young person to work hard and save up for what they want to buy. They tend to appreciate and value things more this way, instead of giving them everything they want. It also kept me from falling into the credit trap that has snared so many people today. Mama taught me that credit was a tool of convenience to be used to get what I need. However I was to only buy what I could afford to pay off by the end of the month. This way I never paid any interest. Mama would be proud to know that after 47 years I haven't paid a dime of credit card interest yet.

I know these financial lessons are old fashioned compared to the idea of “buying what you want today and don't worry about paying to later.” But they have served me well. I know they will serve you and your children as well.

Lloyd Pro Group has been helping Atlanta protect what matters most since 1985 with life, health, auto, business and home insurance in Georgia.

Lloyd Pro Group | Nationwide Insurance
2980 Cobb Parkway Southeast #172, Atlanta, GA 30339
(404) 892-2864   (404) 892-2572 (Fax) ‎

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