How to Persuade Someone to Save Money
While saving money doesn't come naturally to everyone, everyone can still do it. The benefits of cutting excess spending and saving a nest egg or emergency fund far out weight the small sacrifice of $5, $10 or $20 a week. When it comes to asking or suggesting someone else to save, however, it can be a slippery slope. The key with any persuasion is not to come off too strong--you want to highlight the positive aspects of saving and the advantages of having money stored away. While you can't do the saving for them, you can encourage, praise and support them in their journey and learning how to become a saver.
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Instructions
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Lead by example. If they see you saving, and talking about saving, then they will be more likely to want to be part of that activity. Don't flaunt your cash stash, but make it a point to discuss that you are saving such and such, or that you can't get something because you want to save for something else.
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Go over the benefits of saving. Whether it is for a specific purchase or for emergencies, saving money allows people the opportunity to take care of their wants and needs. The more they save, the less likely they will be to spend frivolously because they will see those dollars now as opportunity to save rather than spend money.
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Emphasize the importance of rewarding yourself when you save. The reward should not be monetary (that defeats the purpose), but a set goal of a certain amount saved can be followed up by a long bubble bath or a day curled up with a book.
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Save together. Set milestone goals and check in with them on how their saving is going. If they feel they are going to be held accountable, then they will want to have good results for each check-in. This should be a positive check-in, not a disappointment session.
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Have them keep a journal or log of their savings so they know not only how much they have put in, but also how much the bank has paid them for doing so. Go over statements together and watch the interest payments get larger as they go.
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Create a savings chart and extend it out into the future. Saving $600 in a year looks a lot better in the grand scheme of things and means more than when you just think in terms of saving $50 a month.
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Keep them focused on the prize or goal ahead. It's not as much about the $10 here or there as it is the overall drive to save it. While the saved money is and can be small, the larger amount will be significant. If they think in terms of what they will have, they will be more likely to put money in a savings account or piggy bank.
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Tips & Warnings
Several grocery stores now have banks inside them. Have your friend open a savings account at one of these banks and make it a point to deposit into their savings account on each shopping trip.
Don't harass or nag your friends about saving. Keep the idea a positive one and use only encouragement. If they blew their money on a movie this week, then try to encourage them to set a little more aside next week to make up for it. If you put too much pressure, then they may not save anything.
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- Photo Credit Margaret Telsch-Williams
