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Is it time for saving to become fashionable again?

Quite where the ‘want it now’ instant gratification culture came from is difficult to pin-point. Several factors have contributed; the availability of easy credit, TV & Media and low interest rates. The result is that saving has almost become an old fashioned out dated notion. Why delay the gratification, when you can have it now? What suffer the perceived pain of waiting for something when it can be charged to a credit card or other finance plan?

The results of these attitudes however, are now easy to see. With many people struggling with mountains of personal debt and having to sacrifice necessities every month to pay for luxury purchases.

Is it time for saving to become fashionable again?

Teaching children to save at an early age can instil the discipline, habit and decision making process that will last a lifetime. Introducing older children to a range of savings products and methods will help grow their financial IQs and plant the seeds for sensible money choices and despite interest rates being historically low there are a few good deals around on Fixed Rate Savings

An understanding of interest rates and how they can penalise credit purchases is an essential life skill. So too is understanding how savings and investments can grow to provide financial security and independence.

Parents can set an example by opening (and using) their own regular savings account and by sharing the experience with their children.

One provider we like is Birmingham Midshires who were named the Best Direct Savings Account provider for a record 8 years in a row, and for the 3rd year, we were also voted the Best Direct ISA provider at the 2012 Your Money awards.

They have a range of savings products and accounts including fixed rate savings

Action to get started today:

  • Open a savings account and start a regular contribution
  • For younger children start the savings habit with a money box, piggy bank or savings jar
  • For older children progress to a savings account of their own

You may not see the benefits instantly, but often in life taking the long term approach brings higher rewards.

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