Teaching Kids About Saving and Delayed Gratification

Teaching kids about saving emphasizes the importance of delayed gratification and understanding money management.

### Teaching Kids About Money: The Concepts of Giving, Saving, and Spending
* 👶 When discussing "give, save, spend" with young children, the focus on saving centers around teaching them the concept of **delayed gratification** rather than retirement.
* 👧 With three kids aged 9, 7, and 19 months, the emphasis is on **understanding the basics of saving** before delving into more complex ideas like **retirement and work**.
* 💰 The oldest child is nearing the age where a savings account will be opened to teach her about **interest and how saving can help money grow**, especially since she enjoys math.
* 🐷 The youngest child has learned to save using two piggy banks, which became a fun exercise when they counted the birthday money totaling **$636** together.
* 🏦 The decision was made to deposit this money into a custodial account, enabling the child to see her money "**get to work**" earning interest.
* 🤔 However, this required further discussions about the concept of **money being out in the world working for her**, as she initially struggled with the idea of her **empty piggy banks**.
* 💡 This experience highlights a valuable lesson for both children and adults: sometimes saving and managing money is not about what is physically accessible, but rather about **understanding the broader financial picture**.

THIS Is How We Teach Our Kids About Money!

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Question about where to have young kids save money: for retirement or to teach delayed gratification.

The speaker has three children (9, 7, and 19 months) and focuses on deferred gratification with them.

The focus is on teaching deferred gratification rather than the concept of retirement.

The oldest child will soon learn about interest and savings accounts.

The youngest child used piggy banks, and they counted the money ($636) and put it in a custodial account.

Lessons learned from the custodial account experience

The child had to understand that the money was working even though it wasn't physically accessible.

Analogy to managing assets: the firm manages billions but doesn't physically hold that money.

The speaker suggests a lesson about saving not always being about tangible things.

Conclusion on teaching children about saving

There's a teachable concept about saving not always being about what you can touch.