Lawrence J. Peter once said “If you don’t know where you are going, you will probably end up somewhere else.”
Aimlessly saving money can be counterproductive. We suggest saving with a goal in mind because knowing why you’re saving is just as important as the act of saving.
This is why it’s important when you teach children to feed their allowance to their piggy banks, before feeding the cash register at the candy store, that you encourage them to have a goal in mind.
Savings goals help us determine how much to save, how often, and let’s face it, we’re more motivated to save when we’re saving towards something.
So teach your child, whenever they’re tempted to spend, to ask themselves… “Why am I saving?” And tell them to revisit that answer every time they have trouble deciding between bags of candy or their first savings account.