7 reasons why saving money is a great habit for kids to learn
by Team Sammy
Save Money. It's a Great Habit!
Here are 7 reasons why saving money is a great habit for kids to learn.
1. It will pay off and benefit them their entire life.
2. It will teach them to delay gratification. This will help them have a better chance of reaching goals that are challenging and take time. It will also help them make more thoughtful spending choices.
3. Making a routine, a habit, of saving, builds a foundation for: (a) predictably increasing one's financial security including the ability to address emergencies and unexpected expenses (b) establishing a foundation for investing and financial growth (c) being better prepared to take advantage of financial opportunities, whether it is a business opportunity or consuming more effectively (d) it fosters planning ahead and goal setting for future expenses, like education (college), auto purchases, home ownership, starting a business, etc.
4. It helps kids build confidence, esteem, and a "can do" attitude. It helps build independence and self-sufficiency.
5. It helps them learn to make choices, prioritize and manage limited and valued resources. It helps them build their competency and effectiveness in managing money.
6. It assists them in developing a practical knowledge of the value of money; to recognize nothing is free; and that effort, energy and time must be "exchanged," "traded" or "sacrificed" in order to get what we want and need, especially, when we want and need it.
7. It better prepares kids to give responsibly.
One of the best and greatest gifts a parent can give to their child is teaching them to get in the habit of saving money while they are young!
Parents, Teachers, Community Leaders - Did You Know
A study by the University of Cambridge found children's money habits are formed by age seven, and parents are the primary influence on their children's attitudes toward money. Children who learn to save and manage their money at a young age are more likely to develop responsible financial habits in the long run.
A study by the Consumer Financial Protection Bureau found individuals who start saving money early in life are more likely to have emergency savings and less likely to rely on high-cost borrowing, such as payday loans. Starting to save at a young age can build a foundation for financial security and stability.
A study by the University of Arizona found children who are taught about saving and budgeting are more likely to have positive attitudes towards money, financial responsibility, and delayed gratification. These skills can be applied throughout life to help individuals achieve their financial goals.
A study by the American Psychological Association found children who are taught about money management at a young age have better financial literacy and decision-making skills. Financial literacy has been linked to higher levels of financial well-being and less financial stress in adulthood.
The National Endowment for Financial Education conducted a study found teaching financial education in schools resulted in students having improved financial management skills, including saving money. Early exposure to personal finance education can lead to a better understanding of financial concepts and habits that can carry over into adulthood.
A study by the University of Wisconsin-Madison found children who are given a savings account at a young age are more likely to attend college and have better financial outcomes in adulthood, including higher savings rates and lower debt levels. Starting saving habits early can have a significant impact on a child's financial well-being in the future.
Recommended Activities, Reading, Listening
Listen to Sammy Rabbit Song: Get in the Habit
Read Lyrics - Get in the Habit
Read - Money Lesson 1 Parents Should Teach Kids by children's author and award winning financial literacy education teacher, Sam X Renick
If you have questions, suggestions or would like learn more about Sammy Rabbit and his mission to teach kids great money habits and other important life skills, contact us!
Introducing Sammy Rabbit's Money School
Let's get kids financially literate!
Sammy's Money School is a one of kind membership with a treasure trove of activities, stories, songs, videos, arts, crafts, live virtual experiences, and challenges to learn all about money, the secret strategies of the rich and wealthy, as well as the habits that will help you make your dreams come true! Learn more about joining the Money School.