What are creative tips and tricks to increase saving?

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In this issue: Be wary of overcomplicating financial literacy, tell your kids relateable money stories and some everyday ways to save money.

“Working to help parents raise money-smart kids.”

​​3 Ideas to Share & Save​
(Click the link above 👆 to read this week’s edition on the web.)

Hello, friends!

Thank you for taking this journey with me as we try to overcome obstacles we encounter on the path to raising money-smart, money-empowered kids.

(BTW, if you’d like to hear how previous podcast guests defined the term “money-empowered,” I recorded this short episode with their enlightened answers.)

Now let’s dive into this week’s “3 Ideas to Share & Save”!

— 1 —

Simple Saving:

One of our daughters texted this question over the weekend: “What are creative tips and tricks to increase saving?”

Her college roommate was doing a project, and she wanted our thoughts. (See more of those in Idea #3 below. 👇) So I turned to my wife, Eileen, and suggested we each write our own lists, starting with the fundamentals of saving. We could then share them with each other and later with our daughter and her inquisitive classmate. Honestly, I was curious to see how aligned our lists would be.

Not surprisingly, they were closely matched. Our three core savings behaviors are distilled as follows:

1. Automate. Pay yourself first. When you get paid, move the money immediately into another account. Ideally, not your checking or debit account, as you want the funds to be hard or inconvenient to reach. And put the money somewhere that earns interest. High-yield savings accounts are now around 5%. (Just be sure you’re actually getting the advertised rate.)
2. Reduce. If you’re budgeting, find areas to cut. (And you can almost always cut!) Of course, budgeting isn’t for everyone. But the same principle applies if you’re reviewing rather than budgeting.
3. Secure the goalposts. Don’t increase your living expenses in line with the money you make. Considering the societal pressure to do the opposite, this strategy is perhaps the most difficult yet potentially the most rewarding.

Your own list of essential behaviors might differ, but be wary of expanding it too much. Just as research has shown us that multi-tasking basically amounts to “crappy-tasking” on multiple tasks, focusing on too many “core” behaviors runs the risk that none will be heeded. Lists of ten (or even five) ideas start to overwhelm. There’s a paradox of choice that paralyzes us and keeps us from acting as more options become available.

Keep. It. Simple.

Of course, lists can be helpful when you’re brainstorming ideas to identify the ones you think will work best for your family. See Idea #3.

— 2 —

Stories Matter:

Telling you that your kids enjoy stories is like telling you that they love food. Like food, though, we must find the stories to which they’ll respond. Forcing your wretching toddler to polish off her Brussels sprouts is counterproductive. Perhaps broccoli and peas are the gateway vegetables she needs to develop healthy eating habits.

Similarly, we need to identify the characters whose money-smart messages resonate with our kids. Of course, I will start by recommending The Money Mammals’ books and videos. (Incidentally, join one of our credit union partners. You can get complimentary digital versions of all these resources!)

Or perhaps podcast guest Will Rainey‘s book, Grandpa’s Fortune Fable$, will kindle your kids’ interest in investing. You could also try the Judith Viorst classic, Alexander, Who Used to Be Rich Last Sunday.

The best story does win. Just think about the jingles that play in your head. “I’m cuckoo for Cocoa Puffs” did more than just hardwire a mind virus into my brain; it formed the foundation of the sweet tooth that still haunts me today. 😅🍪🤪 And the original Star Wars trilogy, which I saw when I was seven, continues to be a part of my life.

So let’s fill our kids’ brains with great stories. Maybe rather than developing a sweet tooth or deftness with a lightsaber, they’ll forge a savings habit, smart spending skills and a spirit of money generosity.

— 3 —

Everyday Ways to Save: In The Money Mammals’ original movie, Clara J. Camel outlines her “Reasons to Save.” Channeling Clara’s clear thinking about money, my wife, Eileen, ran with my daughter’s question in Idea #1.

(ICYMI, Eileen co-created The Money Mammals with me and really is our family’s money-smart O.G. She’s even appeared on the podcast!)

Please use her list of tips and tactics to find ideas that resonate with your kids on their money-smart journeys.

• Buy a used car (or furniture) and drive it forever.
• Don’t shop for groceries when you’re hungry. Go with a list.
• Thrift or swap clothes.
• Make your home energy-efficient.
• Research coupons, prices and consumer reports online before making a purchase.
• Buy quality over quantity.
• If you put savings in retirement funds, you basically can’t touch that money without a huge tax hit and penalty.
• If you’re married, live on one salary and save the other.
• Avoid bank and credit card late fees.
• Don’t get parking tickets.
• Go to Happy Hours.
• Think about a purchase for a week or two.
• Return what you don’t love.
• Buy a 4-plex, live in one unit and have the remaining units pay your mortgage.

As always, remember to enjoy the journey!

John,
Chief Mammal

P.S. Please consult with a financial or investment professional before engaging in any decisions that might affect your own financial well-being.

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