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SAVING AT ANY AGE

Saving, do you view it as an ongoing journey? Or do you consider it someplace you arrive? Saving is a habit, not a destination, and it’s a habit you can form at any age. Whether you are a parent trying to instill this habit in your children or want to change your saving behaviors, there are strategies that savers of all ages can develop.  

Research tells us that children’s money habits are often formed by age seven, so starting early to teach them about saving can have a huge impact. Many parents are accustomed to hearing frequent requests from their children about a toy, game, or piece of clothing they “just have to have.” Sound familiar? Using these wants is a great way to help children learn to save.  

Children can learn to set a saving goal and figure out how long it will take to save enough money for their goal. Create a fun system to track progress, provide regular encouragement, and use incentives such as matching funds. A BRB Youth Savings account is a great tool that “Pays for As” on top of the deposits put into the account for children under 18. Don’t forget to lead by example – show children how you are saving. Talk about how it feels to see your money grow.  

You can also give children the opportunity to decide about their money. Empowering children from a young age to make choices about the money they earn or receive as gifts is a great way to build that confidence.

As young adults earn a regular and potentially higher income, a strong foundation starts with a basic understanding of the difference between needs and wants. The automatic saving system, primarily through paychecks with a split deposit, can set young adults on a lifelong saving habit. The America Saves Spending, and Saving Tool is an easy-to-use resource that provides a clear view of your finances and can be insightful in identifying essential and discretionary spending. At BRB, we also offer a free Personal Finance Manager called PerForM that can help track your budget and spending.  

It can be hard to stay motivated when setting aside money for future events, regardless of age. It’s easy to focus on what you want now — we don’t want to wait to purchase that expensive pair of sneakers. We want to take a trip in the next three months. Retirement is so far off that spending more of your current income and catching up later feels OK. In these scenarios, we aren’t thinking about our future selves, just who we are and what we want today. If you don’t know where to start when thinking about retirement, reach out to one of our BRB Wealth advisors to get started today.

Thinking of our future self – what we will want, what we will be doing, what we will believe – is one way to develop a saving mindset. Asking questions about our future selves helps us create a vision for our future. For example, consider the following: 

• Where does your future self live? 
• What does a typical day look like for your future? 
• What hobbies does your future self enjoy? 
• How much money does your future self earn? 

Later, read your answers to see how they compare to the present. Having the ability to look ahead, even if it’s a short time in the future, is a great way to reinforce saving today for tomorrow. You can do this at any age, even with children. 

Journeys can take us on many different paths, and saving journeys are no different. So stay with America Saves as you and your family embark on a new journey or resume one that encountered a detour. It’s never too late.