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Children and Savings

"When kids grow up on a farm, the value of savings is much easier to comprehend than in an urban environment.  If a farmer sells or consumes all of corn that he harvests, the following year he will have nothing to plant and as a result, have no income.  The smart farmer knows that some of what he harvests is to feed his family, some is to sell, and some is to be saved for seed.  Teaching the concept of holding some of what is harvested (earned) as seed (savings) for the future is something every farmer’s child understands.
“Unfortunately, most of us aren’t farm savvy.  But at your dinner table you could use examples from any farm-grown vegetable that has seeds.  Explaining that one kernel of corn produced a stalk with several ears and that each ear produced hundreds of kernels, can teach many principles; planning ahead, sowing and reaping, and compounded interest.
“Years ago we read the book Millionaire Next Door by Thomas Stanley and William Danko.  The book gives great insight into the habits of hardworking, wealthy families.  Of the many interesting statistics that the authors shared, one stood out to us: the average millionaire saves 15 to 20 percent of what he or she earns.  If it’s good enough for them, it’s good enough for our kids and us.” – Steve & Annette Economides in the MoneySmart family system

Children are not accustomed to saving.  They want what they want and want it now.  I like the farmers idea  as a way to teach children that saving is important.

Renee Madison, MA, LPC, CSAT is a counselor in Colorado.  She can be reached for appointments at 303-257-7623 or 970-324-6928.

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