How to teach friend how to save.

[BlackTigers]

I'm trying to teach a friend how to save money, and it's probably the most difficult thing to do. lol.

Does anyone know of any good resources (links..) of anything relating to teenagers saving money? Why it's good, how to start..blah blah...

He won't do what I did when I started saving. So I'm going to need another approach.

 

[apac]

Originally posted by: BlackTigers
He won't do what I did when I started saving. So I'm going to need another approach.

If he's not going to listen to you, why bother?

 

[speg]

I find the best way to 'save' is to spend. And by that, I mean spending my cash on assets that will give me a postive return.

 

[SpunkyJones]

Originally posted by: speg
I find the best way to 'save' is to spend. And by that, I mean spending my cash on assets that will give me a postive return.

Sadly, hookers and blow don't have much of a long term return, or I'd be rich.

 

[Kelemvor]

If he doesn't want to save his money, don't worry about it. Save your own ad laugh at him when he wants to borrow some.

 

[IHateMyJob2004]

tell him to take 1 and multiply by 1.1. Then have him take the result and multiply by 1.1. Then have him do this 30 times.

 

[Slew Foot]

Originally posted by: Kelemvor
If he doesn't want to save his money, don't worry about it. Save your own and get taxed up the ass when the bailout bill gets due.

Fixed

 

[acheron]

No reason to save, he can always ask the government for a bailout if he gets in trouble.

edit: a few seconds late!

 

[Fritzo]

Set up autotransfer of 10% from his checking to savings. That way you never see the money in the firstplace, so you don't miss it.

 

[HardcoreRobot]

dont worry, you are saving for him

 

[GasX]

Why are you responsible for teaching him this?

 

[BlackTigers]

Originally posted by: Fritzo
Set up autotransfer of 10% from his checking to savings. That way you never see the money in the firstplace, so you don't miss it.

See, that's what I do. I have my direct deposit go 40% into savings and the rest into a checking account. I don't know why he has trouble with that, it works for me, and is relatively painless.

 

[spidey07]

Teach him the concept of paying himself first. Have money automatically deducted and put into savings.

 

[Beev]

Wow, bunch of dicks in this thread. Maybe he wants to help him learn because he is his FRIEND?

Fritzo's idea is probably the best. It's easier to save money when it automatically gets put away for you.

 

[Adam8281]

Give a man a fish and he'll eat for a day. Teach a man to fish and he'll eat for a life time.

 

[frostedflakes]

What kind of work does he do? Is he going to school?

 

[BlackTigers]

Originally posted by: frostedflakes
What kind of work does he do? Is he going to school?

Retail - American Eagle. Yes, Junior in high school.

 

[IGBT]

..explain "old age" and retirement. it comes to all of us ready or not.

 

[So]

Originally posted by: Adam8281
Give a man a fish and he'll eat for a day. Teach a man to fish and he'll eat for a life time.

Build a man a fire and he'll be warm for a day. Set a man on fire and he'll be warm for the rest of his life.

 

[kedlav]

Originally posted by: Adam8281
Give a man a fish and he'll eat for a day. Teach a man to fish and he'll eat for a life time.

Until all the fish die. Then he'll starve like the rest of us.

 

[CRXican]

Originally posted by: IGBT
..explain "old age" and retirement. it comes to all of us ready or not.

Then explain it makes more sense to blow all your money and have fun when you're younger. Can't take it to the grave and when you're old and stuck in one spot what good is it?

 

[TallBill]

He's not going to save much working a part time high school job. Unless he has something specific to save for it'll be tough.

 

[TallBill]

Originally posted by: So

Originally posted by: Adam8281
Give a man a fish and he'll eat for a day. Teach a man to fish and he'll eat for a life time.

Build a man a fire and he'll be warm for a day. Set a man on fire and he'll be warm for the rest of his life.

Haha, thats great.

 

[acheron]

Originally posted by: CRXican

Originally posted by: IGBT
..explain "old age" and retirement. it comes to all of us ready or not.

Then explain it makes more sense to blow all your money and have fun when you're younger. Can't take it to the grave and when you're old and stuck in one spot what good is it?

My grandparents traveled all over the world after they retired. Japan, Norway, Switzerland, Egypt, Alaska, etc. The only people "stuck in one spot" after retirement are those who didn't save enough.

 

[frostedflakes]

Is he planning to go to college, or does he have a decent job lined up after HS? If he plans to go to college, does he have the financing figured out?

If so, I don't really see the big deal. Putting 10% of his $400/mo paycheck into savings isn't really going to make much of a difference if he's going to be making $40k+/yr out of college in 5-6 years. I guess every little bit helps, though, and it's a good habit to get into. I just don't think it's critical that he get very serious about saving if he has ambitious plans for his future.