May 11, 2018 1:39:15 PM

Inspiring Good Saving Habits

Topics: Retirement, Debt Consolidation, Mortgages, Savings, First Home Buyer 0

Most of us are aware of the importance of saving: Saving for a first home, saving for a holiday, saving for retirement. But how often does that message filter through to our children? Experts say it’s never too early to start talking to children about money, and this amazingly simple formula could help kickstart their good saving habits.


Spend, Save, Share

Children’s money habits can be established as young as 7 years old and can be hard to break later on, which is why it’s so important to teach kids early on how to save. But where to begin?

Financial experts recommend using the “Spend, Save, Share” plan as a helpful tool for teaching young children the fundamentals of money. This plan helps kids understand the value of money, the importance of saving for the future, and the joy of sharing.

The basic concept of the “Spend, Save, Share” plan helps children divide any money they get – be it pocket money, birthday money or earnings from household chores – into three buckets: A spending bucket, a savings bucket, and a giving-away bucket. 

While the percentage of income that goes into each bucket will likely vary as children grow older, starting early on means that by the time children reach adulthood they should already be in the habit of regularly saving a portion of their income.

Set an example

Many parents avoid the topic of money when it comes to their children, shying away from discussing anything financial in front of them. But what better way to teach children the value of money than to be a visible role model. And there are endless opportunities to do so. Here are some examples:

  • Use your household budget as an opportunity to talk openly with your children about money – discuss the value of each dollar and the need to prioritise how that money is spent on bills, food and entertainment.
  • Involve your child in your weekly shopping by writing a list, comparing prices and discussing the merits of saving a few dollars by choosing the generic or name branded products.
  • Help children to save for a particular toy they want rather than simply buying it for them and teach the basics of commerce and money handling by letting children pay for items with cash.
  • If your child receives pocket money, link their earnings to jobs around the house rather than simply paying them an allowance.
  • When they’re older, open a bank account and help them make regular deposits, explaining how their money grows with the interest they earn. 

Helping children buy property

Establishing good saving habits early on helps set your children up with a financially healthy mindset that will serve them well throughout their lives.

More and more today, parents are helping their grown-up children buy their first home. If this is something you’d like to find out more about, have a read of this blog post or get in touch with one of our mortgage brokers to talk about your specific requirements.



While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Mortgage Express Limited for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication.

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