The Third Pillar: Save Regularly

"With money, it's not what you make it's what you keep" Paul Brown

Want to teach kids how to save? Then talk about what they want to buy! OK sounds like a pretty obvious disconnect, not so, as soon as you get them describing their wants, the conversation about SAVING has begun. 

Brainstorming with them about HOW they will get that item, what it costs and how long it will take to save for it, engages them in the planning. 

Children learn by doing. Having some money to make a plan with, allows them to develop the saving regularly habit. 

They gain confidence by practicing and acquiring skills. 

Teaching them successful saving strategies helps them learn the fundamentals of sound money management. Saving regularly is one of these. It teaches them: 

• It’s OK to want things and a financially healthy way to get them 
• How to make and use a money plan, aka “budget” 
• How to prioritize short and long term goals 
• Delayed gratification 
• The "language of money" eg: interest, compounding
• To always have money set aside 

How to get them started 

Help them make a plan to save some of their money for that item they told you they really want. Remember the two savings accounts we talked about last time? It’s now time to really activate the second account. Why? It holds the money for their mid and longer term goals. 

Show them they already know how to save! Point out to them they are already saving because they have the PAY MYSELF FIRST Account (PMFA). This account holds the money for their long, long term goals. 

Chances are if they are encouraged to save some of their money on a regular basis they‘ll continue to do so.  Now they are on the road to becoming successful savers! 

“If you would be wealthy, think of saving as well as getting.” Benjamin Franklin 

Want to learn more? Visit www.fourquartersfinance.com

Teaching your kids about money? What’s your plan?

“If you are planning for a year, sow rice; if you are planning for a decade, plant trees; if you are planning for a lifetime, educate people.” Chinese proverb 

It’s September, that busy time of making plans for the new school year. As parents we are in that unique position of being our children’s first and most important teachers. 

When it comes to helping them learn about money management and becoming financially literate the information and opportunities are everywhere. We know in today’s world, this is a fundamental part of their education. 

The challenge becomes, with all the information out there, how do we teach them? What do they need to learn and what do we want them to know? How do we talk to them about money? 

Financial education happens over time so we “start as we wish to continue”… with a conversation or better yet a series of conversations. By encouraging our children to talk about their hopes and dreams; how they plan to achieve them and what they think the costs will be, we are giving them the message that money is not a taboo subject. It's good to talk about and in a positive way. 

As parents we make all kinds of plans for our children’s education. Making one for teaching them how to manage their money is a very good place to start. It all starts with a conversation and a plan. 

“Planning is bringing the future into the present so that you can do something about it now.” 

Alan Lakein 

Want to learn more?  Visit www.fourquartersfinance.com

Welcome to the four quarter$ blog

We want to help parents teach their kids how to become great Money Managers.

It is up to us, as parents, to ensure our children are learning the skills that allow them to become financially self-sufficient. The buck (literally) stops with us! 

How do we do this? Over the next weeks, months (and years!), we’ll look at the resources that support the learning, sharing tips, techniques and strategies that work. 

Most importantly this will be the place that you - parents and grandparents - can share your hopes, dreams and concerns as you teach your children to become great money managers. 

We can do this together. Let's make it so.