Elusive Savings

Recently I was listening to Susie Orman talk about money. I love to hear her speak. I never tire of listening to her. She has such a good grasp of finances, and is able to communicate that knowledge so that it is easily understood.

During that presentation she took questions from the audience. One person asked her how they he could possibly save money when things were so tight.

She responded that if you save all your change at the end of the day, by the end of the month you would probably accumulate $100. That money is saved almost effortlessly. I don't know if that's true for all of us, but it does work for some.

I wrote an article called "The Return of the Piggy Bank" . It is on the website, but I know many of you haven't read it. It has some other money saving ideas, and some motivational thoughts. Here it is again, in an updated version.

Get a Piggy Bank,just like you had when you were a child. You need a big, round metal can, like you buy punch in. Buy the drink, and using a couple small holes (made with the pointed end of a hand can opener), drain the juice into a pitcher. Wash out the can and let it dry. Then, cut a small opening in the top of it, just large enough for change and dollar bills.

This will be your Piggy Bank. You can put the money in, but you cannot see it or get it out unless you use the can opener to take the top off. To make it more attractive, and make you less likely to want to break it open, decorate it! It will also help if you are worried about security.

Put the Jar out on a counter where everyone can see it, and ask everyone to "feed it". Let your little children put in pennies, your older children dimes and quarters. Put in paper money when you can afford it.

Let the whole family know that this jar is to save money for the unexpected emergency, family vacations, or the future. This is a great visual tool for your children to learn how important it is to save.

Let your children be aware of how this money is going to be spent. Talk to them about the different reasons to save money. Here are some examples:

* Household appliance repairs or replacement- things you can't do without, such as your water heater or furnace.

*Automobile repairs, or in the case of an accident, temporary transportation or insurance deductibles. Travel expenses for family emergencies and unexpected expenses incurred during a vacation.

*Deductibles or co payments on unexpected medical expenses. Extra money for running the house if it is mom who gets sick.

If you are saving for a vacation, they will enjoy the anticipation and realize the sacrifice. Talk to them about the different expenses you occur when you go away from home.

Talk with your children about what happens when you can no longer work. You still need money. That is why you must save.

When you children start working they will often have the choice on whether to contribute to a pension plan. A lot of young people do not take advantage of these opportunities, even when there is a matching company contribution. If you have taught them the importance of saving money, they will make a better decision.

WHAT BETTER WAY IS THERE TO TEACH YOUR CHILDREN TO SAVE THAN TO LET THEM SEE YOU DOING IT? Even if you only accumulate $10-$20 at the end of the month, do it! Do it for your children. They need to learn.

UNCLE SAM- Ask your employer to lower the number of exemptions reflected on your paycheck. You paycheck will be smaller, but you will receive it back at tax time in a block of money that you may find easier to save.

DIRECT DEPOSIT- Again, useful for the above problem. Have your bank transfer a specified amount of money each Friday from your checking account to your savings account. That money builds quickly. Even if you think you can't do it, try! This is what has worked for us, and saved us many times.

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