Saturday, July 2, 2016

Teach Kids To Separate Savings From Income Before Spending

Today’s fantastic family finance article is:

Referee Separating Boxers


“Do not save what is left after spending, but spend what is left after saving.”
~Warren Buffett

Spending and saving are like two mismatched boxers. Spending delivers a knockout punch to saving every time. The two need to be separated, or spending will dominate. In fact, the best strategy is to never let saving set foot in the same ring.

How can you teach your kids to protect saving from spending? Simple. Automatically pull savings out of income first. Place a fraction of every allowance, chore, odd job, birthday, or holiday payment into a separate account, card, or jar where it can be safely protected from the long arm of spending.

If you can condition your kids to run away from the fight between saving and spending, they’ll be financial champions.


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