Empowering Financial Wisdom: Teach Your Kids the Art of Saving

"Don’t save what is left after spending, spend what is left after saving." - Warren Buffet

Greetings!

As you know by now, at Wealthy Kids Academy, we are dedicated to nurturing the financial well-being of the younger generation. Today, we delve into a concept that can have a monumental impact on your kid’s financial future: "Don’t save what is left after spending, spend what is left after saving."

Warren Buffet's words carry a simple yet super impactful message that can reshape the way we approach money. This quote serves as the cornerstone of smart money management, emphasizing the importance of prioritizing savings before expenses.

The Essence of the Idea

Buffet's teaching is a simple concept: Always pay yourselves first! While the concept seems straightforward, implementing it can be challenging, especially in a world where financial obligations can get extremely overwhelming, very quickly.

Consider the immense impact if we instill this idea of ‘pay yourself first’ in our children from an early age. By teaching them to allocate their resources with this philosophy in mind, we empower them to build a sustainable financial future. The habit of paying themselves first becomes ingrained, setting them on a path to financial security and prosperity.

One of my favorite financial authors and educators, Loral Langemeier, says in her book that the ‘reliably rich’ approach money like this:

Income - Investments = Expenses

Imagine if our children grew up understanding that their investments come before their expenses. This transformative approach shifts the conventional mindset. Instead of simply saving money, we encourage them to invest wisely, creating a solid foundation for their financial growth.

Making Saving a Priority

The key lies in making savings and investments a non-negotiable expense. By prioritizing these actions ahead of daily expenses, our children begin to shape their financial destinies with intention. This practice helps them sidestep the common pitfalls of overspending and aligns their choices with their long-term goals.

Building Financial Resilience

As parents, we understand that applying this lesson later in life can be extremely hard, if not impossible in some scenarios, especially without a plan to increase income. At Wealthy Kids Academy, we encourage strategies to expand income streams while teaching the habit of paying themselves first. Our goal is to equip kids with the tools they need to flourish financially, no matter the circumstances.

By instilling the concept of "Don’t save what is left after spending, spend what is left after saving," we are empowering our kids to embrace a financially conscious life. As they grow, this mindset will guide them toward making informed decisions, setting ambitious goals, and enjoying the rewards of a secure financial future. It will also always prioritize their saving and financial well-being BEFORE satisfying a lifestyle choice.

Cheers to a brighter financial future,

Amanda