How do you encourage someone – a child, partner, pet – to save money? Here are five awesome ways to help loved ones save money, inspired by a reader’s question…
“My boyfriend and I are both seventeen, he’s going away to university in August,” says Tiff on How to Stop Money From Causing Relationship Issues. “He only has a Saturday job. He’s been spending loads of money that he doesn’t have. I’ve been trying to encourage him to save money, but he just agrees and saves nothing. I’ve told him I’ll help him. Instead of traveling this summer, we’ll find free ways to enjoy ourselves. What are some ways I can ensure he saves money? How do I encourage him to save more and spend less?”
Get him a piggy bank! It’s a great way to encourage kids to save money – and we’re all kids at heart. The Digi-Piggy Digital Coin Counting Bank is cool because it keeps track of how much money is being saved. I’m kidding :-) Here are five ways to encourage someone to save more money…
“There is only one way to get anybody to do anything. And that is by making the other person want to do it.” ~ Dale Carnegie.
5 Ways to Encourage Someone to Save Money
The best ways to help people save depends on their personality…and your ability to let go of the need to control.
1. Remember that you can’t make someone want to save money
You can’t ensure anyone saves money, much less a seventeen year old boyfriend who is spending more than he has! I think the best tip for someone who wants to encourage a partner or family member is to remember you can’t change another person’s financial habits. You share easy ways to save money by doing them yourself…but don’t try to change him. You’ll set yourself up for disappointment, disaster, and a dearth of love.
If your loved one has no money, read 5 Secrets for Surviving When You Have No Money.
2. Add a frog when you encourage someone to save money
Yes, you read it right: a frog can help someone save money. Researchers studied the effects of negotiating the purchase price of an expensive piece of art in two ways. Half the time, the buyer said, “I offer $6,000, and that’s my final price.” The other half, the buyer said, “I offer $6,000, and I’ll throw in my pet frog.”
Which offer convinced people to say yes? The one that included the pet frog, natch. A brief, humorous, light-hearted approach can put people in a good mood, and encourage them to save more money than if you nagged.
3. Set up a “cash contest”
“Stick to cash for a week and see who wins,” writes Farnoosh Torabi in 5 Ways to Encourage Your Spouse to Save Money. “As we know, the best way to reduce spending is to stick to cash. Swiping a credit card involves less “pain” than taking cold, hard cash out of your wallet and watching it disappear.”
To make saving money fun (and encouraging), he suggests creating a contest. “Give yourselves a strictly cash (no credit cards) discretionary budget for the week, say $100, and see who finishes with the most in his/her wallet. The one who loses has to assume some undesirable chore or task – like cleaning duties for the week or chauffeuring the kids to their various play dates/sports/tutoring all week.” If you both spend less money (and in fact on average we do spend less money if we use cash, by 20%), you’ll feel extremely rewarded and be encouraged to keep saving.
4. Be open about how you save and invest your money
If you want to encourage someone to save money, don’t lecture or try to force him. Instead, role model your own good financial habits and reasons for accumulating wealth.
For instance, do you have good debt (money borrowed to finance an asset, such as a mortgage or student loan)? What are your favorite money saving tips? What are you saving up for? How does saving money positively affect your life? What are your financial goals?
5. Compromise – meet halfway
Here’s a great way to encourage someone to save money, from a reader:
“I have a few friends who love to eat out and although I enjoyed it, that lifestyle doesn’t fit my new financial goals,” says Sydney on How to Stop Spending Money You Don’t Have. “With one friend in particular we’ve been able to strike a compromise – we only go out to eat once a month and it has to be someplace that has a half-price or by-one-get-one-free coupon. As it turns out, she likes the fact that she’s saving some money now too!”
I think the best tip for encouraging people to save money is to let go of the need to control them. Keep your love separate from your finances…and you’ll both be happier.
What do you think – how do you encourage kids, partners, or family members to save money? Comments welcome below…