Practical examples will benefit my Son who cannot save
2006-09-26 22:12:03 · 20 answers · asked by roy 1 in Business & Finance ➔ Personal Finance
He has want to save for himself. If he doesn't currently see any point in doing so, you will have to work on that first. Suggest something he might want to save towards (e.g. car, ipod), or highlight occasions he's not been able to do something because of his lack of savings (e.g. go on a trip with his mates).
It is easiest to save with a goal in mind, whether it is a big purchase, or to pay off a loan. I usually decide the timescale first (I want that car by Christmas), and then work out how much I need to save each month to see if it is realistic. Even if I don't achieve my savings target every month, I get an idea of how long that's set me back. e.g. If I want to save £1000 and plan to do it at £100 a month, but only save £50 in a given month, then I know that if I carry on this way, it's going to take me twice as long to get there. That's usually enough to spur me to do better the next month.
Consider choosing a savings account with a 30 notice period for withdrawals, that way he will have to really plan ahead to spend.
When I was a child, my parents used the rewards system - Everytime I saved £100, they'd give me a tenner as a reward (my weekly allowance was £3, supplimented by money from chores and birthday money).
2006-09-26 23:16:53 · answer #1 · answered by Junisai 3 · 0⤊ 0⤋
A lot would depend on how old he is and of course his circumstances.
When my son started work, I told him that ALL of his wages would be his for the first 3 months IF he banked at least 25% of them. After 3 months he saw how much he had and continued, he's now 23 and has done this since the age of 17. A standing order is good because it's gone before you get it, so to speak.
I have one too - in an account I can't touch for 12 months!
2006-09-26 22:24:31 · answer #2 · answered by Dee 3 · 0⤊ 0⤋
Yeah I have. It was hard work.
Unfortunately I'm not a good example, as the only reason that I was able to save was because I got a well paid job.
However, it did mean saving rather than spending the excess cash that I had which, as I was living in London at the time, would have been very, very easy.
2006-09-26 22:13:33 · answer #3 · answered by Felidae 5 · 0⤊ 0⤋
Set up a ISA or savings account that you can't regular take money from, then set up a monthly standing order form your current account and watch your saving grow.
Be careful not to bite more than you can chew though and only set up a small standing order to begin with, you can always increase the amount if you can afford it but you don't want to lock big chunks of your disposable income away.
2006-09-26 22:44:00 · answer #4 · answered by Gaz 2 · 0⤊ 0⤋
I started putting money into a second account that i have every month through a standing order. Start with a small amout like £20 and build it up bit by bit. After a while you dont even notice that its going out its just like another bill etc. and you dont realise how much it builds up if you leave it and dont keep looking at it. its quite a nice surprise when you look after 6 months or so
2006-09-26 23:11:56 · answer #5 · answered by Wendy 2 · 0⤊ 0⤋
Definitely a standing order coming out on payday so you don't even see the money when you go to the ATM.
Also, get enough cash out to last you the week for entertainment, meals out etc (say £50) and resist using switch - if you don't have the cash, you can't spend! If you have some leftover at the end of the week then get less out next week.
2006-09-26 23:16:53 · answer #6 · answered by a.t. 1 · 0⤊ 0⤋
Have a direct debit from a bank account so he does not miss it going out. Make sure anything he saves or earns goes into the account and all his outgoings come from this account. This way he can learn the value of money.
2006-09-26 22:24:50 · answer #7 · answered by albert_rossie 4 · 0⤊ 0⤋
Use a standing order to a savings account. After a while you forget all about it.
Live on the theory of "pay yourself first". That means that you save first then pay bills etc. If you do it the other way around, you never save.
2006-09-26 22:15:04 · answer #8 · answered by Munster 4 · 0⤊ 0⤋
yes i have saved about £600 each month for the past 2 years, unless you have a very low salary you always have money left at the end of the month, so whats left just put it on a saving account.
2006-09-26 22:20:50 · answer #9 · answered by Goldfish" 1 · 0⤊ 0⤋
Standing order, initially 10% of his net income, rising as time goes on, transferred into a 30+ day notice account. Always live on significantly less than you earn, a third less is a good aim.
2006-09-26 23:53:45 · answer #10 · answered by Sangmo 5 · 0⤊ 0⤋