If you are struggling to think about what to buy your friend or a family member as a gift, whether it is for a birthday, Christmas, a ‘thank you’ gift, or just to let someone know you love them, have you considered teaching them how to save?
You might have a friend or family member who has a bad relationship with money or they might just need a push in the right direction encouraging them to think about the future. The tips below will explain why introducing saving to a loved one is the perfect gift, and provides information on how to go about doing so.
Teaching a love one how to save:
What better gift can you give to someone than improving their quality of life? Discussing the benefits of saving money with your friends or loved ones can open their eyes to the gift of saving. You could explain to them that saving is a great way to prepare for emergencies. Ask them to see themselves in a situation where they’ll need a bulk of money immediately, what would they do? If they don’t have any savings it can be difficult to work out where to get that money from. Saving makes you feel safer, and more protected from the unexpected.
Remind your loved ones that it is important to prepare for the unexpected such as their car breaking down or boiler breaking. They may develop a serious health issue or come down with an illness at some point which means they could need to stop working for a period of time and having a “rainy day fund” will ensure they are able to pay their bills even when they cannot work. There are also plans that can cover for you when you are out of work such as income protection insurance.
Savings are important for those in the sandwich generation, as they are financially supporting both their elderly parents and adult children and therefore are more likely to feel like they are under financial pressure. Savings could help them to alleviate the financial pressure, as they are planning ahead for the unexpected.
To introduce saving to someone you care about, you could help them to create a budget and explain to them that it will help them to manage their money better. Creating a budget will help them to make smarter choices about how they spend their hard earned cash and it can make a big difference to their lives as they will learn to live within their means when it comes to spending money.
You should also explain how saving over the long-term has a range of benefits, such as supporting them in retirement. Saving money for your retirement means that you can enjoy a work-free life when you reach that age, allowing you to enjoy time with those you love. You should discuss one of the major benefits of saving money now, while you are still able to work.
Saving money can also help the person achieve their career goals and invest in their future. This is especially important if the person does not enjoy their current job and has future career plans. They may need to pay for further training.
You should also discuss the fun and exciting opportunities that are available to someone who saves their money. Travelling around the world, going on an expensive holiday or buying a house usually all require some level of saving to be achievable. Saving money will open doors to certain opportunities that are not very accessible if you have no money left at the end of the month.