Money Lesson 1 - Parents Teach Your Kids the Power of Saving Money
Parents, if you are a Sammy Rabbit fan, you already know the single most important money lesson and habit we strongly encourage you to teach your kids:
Get in the habit of saving money!
Our mantra: saving money is a great habit!
Why
Why is saving money a great habit? One huge reason, habits have predictable outcomes. That makes them powerful and transformational! Choose and develop the right habits and create the life you want.
The habit of saving money has several enormous payoffs. Here are four:
It immediately places a child on the path to more prosperity, increased independence, and a stronger state of security;
It teaches delayed gratification and goal setting;
It provides time to think about and make better money choices;
It instills discipline which builds confidence and esteem.
Find more payoffs and insights on the benefits of saving money regularly in our companion article, 10 Reasons Why the Habit of Saving Money is Vital to Your Well-Being
Start Early
We recommend beginning the financial education and empowerment process when kids are young. The earlier the better. This means ages 3, 4 and 5, if not sooner. That is when the "slate" is most clean and close to pristine. Take advantge of this brief window to start seeding and shaping the feelings, attitudes, and habits of children on money.
Remember, education is a process. Mastery requires time and repitition. You can do it and your kids can too!
5 Outstanding Quotes and Sammyriffic Wisdom on Saving Money
Saving money sets kids up for sustained success and making lots of dreams come true! Here are five outstanding quotes that provide some additional inspiration and motivation to get kids in the habit of saving money.
One: This quote from T. T. Munger is a favorite. We wholeheartedly agree with it:
The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
Two: George Clason put it this way in his classic, The Richest Man in Babylon:
Pay yourself first!
Three: The personal finance blog, The Simple Dollar, and many others, communicate the concept as follows:
Rule #1 - Spend less than you earn!
Four: Warren Buffett is not one of the wealthiest people on the planet by accident. I have found it a good idea to check in on his thinking on personal finance matters, whether it is saving money, investing it, or anything else. Buffett shares this sage and Sammyriffic guidance:
Do not save what is left after spending, but spend what is left after saving.
Five: Sammy Rabbit emphasizes it this way in his story books, songs and activities:
"Saving is a great habit!"
Make it a Habit...Make it Automatic
The title of David Bach's best selling personal finance book nails it, "The Automatic Millionaire!" One of easiest and most efficient ways to develop a habit is to automate it. Automating a process turbo charges habit formation. It reduces the cognitive load and effort required to perform the habit consistently.
We love the strategy so much, we incorporated the concept into the lyrics of Sammy Rabbit's toe-tapping, hand clapping, money song S-A-V-E:
...make it a habit; make it automatic... (refering to saving and investing)
If you automate your child's saving for them, be certain to: (1) still have them make regular deposits into a piggy bank or savings jar; and (2) periodically review saving statements with them (as you determine appropriate).
4 Easy and Fun Steps to Teach Your Kids to Get in the Habit of Saving Money
Have kids:
Listen to one or all of the songs hyperlinked in this blog, starting with Get in the Habit. Then, have them complete the activities associated with each blog. Parents, grandparents, and other interested adults, you may want to start with our Parent Guide for the song Get in the Habit!
Read the story Sammy's Big Dream
Follow up the song and story with a discussion
Make a deposit with your child or children into a piggy bank, savings jar or into a savings account at the financial institution of your choice.
More Money Lessons Parents Should Teach Kids
Money Lesson 2 Parents Should Teach Kids: Dream Big - Aim High!
Money Lesson 3 Parents Should Teach Kids: Goals are Like Gold!
More Money Songs
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Your friends in early age, youth and family financial literacy education for the last 20+ years and counting.
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Let's get kids financially literate and dreaming big, their families and communities too.
Put kids on the path to dreaming and do big one step at a time. Put kids on the path to increasing financial safety, security, stability, wellness, well-being, and wealth today!
Enroll them in Sammy Rabbit's FREE Money School Membership program. The program:
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