When it comes to money, we’re all pretty good at the spending part.
As children learn about money, they quickly catch on to the instant gratification that comes with buying something you want right then and there.
So how do you teach them about delayed gratification and the benefits of saving?
Make Saving Goals Achievable
The most important thing is to have an achievable goal – not too easy but not too hard. Saving should be a positive experience, so it’s important they have the best chance of success and don’t get overwhelmed. If your child has something in mind they want to save for, it will be easier for them to stay motivated. If not, you can jointly decide on a savings goal, and the time you wish to achieve this by.
Set a savings deadline
Keeping savings on track requires not only knowing what you want to save for but also how long it will take to acquire it. Setting a savings goal deadline is essential for measuring success. Simply, use the Greater Bank Savings Goal Calculator to figure out how much they need to save and how often, and to see the different interest payments will make to their efforts.
Track your savings goals
Open a savings account for your goal
Did you know that one third of Australians are financially illiterate?
You could also open additional bank accounts based on specific types of savings goals such as short and long-term goals.
Be mindful of the goals you’ve set and remember to stay patient without putting too much pressure on yourself.
Automate your savings
Remember, good savings habits can last a lifetime.
Be mindful of the goals you’ve set and remember to remain patient.
Putting too much pressure on yourself could cause you to lose interest and abandon the effort.
One possibility is to automate your saving. Instead of setting aside savings, set up automatic direct deposits from an existing savings account.
