How to teach friend how to save.

[BrokenVisage]

Get him signed up and active on deal forums like FatWallet and SlickDeals. He'll (hopefully) start seeing that it's beneficial to look for deals on things he wants/needs and will start doing research on products and prices before making a decision on something in the future. Of course this leads to compulsive shopping and occasionally buying things you don't really need/want just because they're available at a great price, but with time one should be able to suppress such spontaneous purchases (I'm still learning).

 

[Adam8281]

Originally posted by: BrokenVisage
Get him signed up and active on deal forums like FatWallet and SlickDeals. He'll (hopefully) start seeing that it's beneficial to look for deals on things he wants/needs and will start doing research on products and prices before making a decision on something in the future. Of course this leads to compulsive shopping and occasionally buying things you don't really need/want just because they're available at a great price, but with time one should be able to suppress such spontaneous purchases (I'm still learning).

Until one seemingly-normal day when he happens to stumble upon the OT portion of those forum sites, and spends the rest of his formative years squandering time like a billionaire with 48 hours left to live squanders money.

 

[IGBT]

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?

..well that's true. your can always mooch of your relatives and go on welfare when the money runs out. mabe even get a job at walmart. you'll be one of those old coots standing in the lobby with your walmart apron on.

 

[BlackTigers]

Originally posted by: 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.

I've got over $4k in the bank from a "part time" highschool job. And I'm halfway through senior year.

It was over 6, but I had to buy a car. =/

 

[TallBill]

Originally posted by: BlackTigers

Originally posted by: 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.

I've got over $4k in the bank from a "part time" highschool job. And I'm halfway through senior year.

It was over 6, but I had to buy a car. =/

I entered college with about $12k... if that number was $0 instead I'd still probably be in a very similar financial situation.

 

[*kjm]

Originally posted by: 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.

Or your father came from a farming family moved to the city and drove dump truck from 5am to 9pm to raise his 5 kids..... some people need to pull their head out and realize not everyone is born with a leg up in life!! Arrogent a$$!


OP his parents should have started him a long time ago...... it is something you have to learn over time and some will never learn. You are a good friend for trying just take your time.

 

[ModerateRepZero]

If he's a reader there's a classic book "The Millionaire Next Door" about how people have saved money for their retirement, a number of whom did so WITHOUT a high income. One thing that virtually all those successful retirement savers had in common was that they played good 'defense' in saving money and spending it wisely.

Although the data would be a bit dated since the book is over 10 years old, the principles are simple and timeless. My favorite example off the top of my head was one calculation that a smoker's family could've made alot of money if instead of smoking for 30+ years the parents had invested in RJR (?), a tobacco company, and continued reinvesting the divdends and buying more shares during that same period.

 

[jagec]

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.

Give a man a fish and he'll eat for a day. Take a man's fish and tell him that he's lucky to be alive, and he'll figure out a way to catch another fish for you to take tomorrow.

 

[thomsbrain]

Originally posted by: 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. 🙁

Haha.

But yeah, I also find that thinking of my saving and investing as "spending" helps. I think of it as "buying more money." It's like asking the genie in the bottle for "more wishes" as your first wish and having it granted, as long as you are willing to be patient.

 

[SuperjetMatt]

www.daveramsey.com

If you feel generous, buy him Ramsey's book (Total Money Makeover).
Or, if he goes to church, find an FPU class for him.