Money Obedience

We have a savings account at HSBC Direct, and every now and then they send us information on personal finances - especially on savings. A while ago HSBC organized a group of customers called “Active Savers.” They say that the members of this group are “characterized by their dedication to savings.”

HSBC conducted a study on these Active Savers and found out that more than half – 57% to be exact – learned to save at a young age. Almost 3 out of 4 “Active Savers” say, “putting money away is a value their parents instilled in them.” These results clearly show that you have an advantage in life if your parents were responsible with their personal finance. Under those circumstances, you learned good financial habits from your parents. (I suppose the opposite is also true. Parents pass bad financial habits on to their children.)

These results also give us two other important messages.

First, even if you did not learn to save at a young age, you can still become a saver later in life. Almost anybody can start saving today if she or he makes the decision to do so. While 57% learned to save at a young age, 43% or almost half of the HSBC savers did not learn this skill at a young age and still managed to become “Active Savers” at HSBC later in life.

Second, if you are a parent, knowing this information can give you even more incentive to keep your personal finances in good order. Not only will you enjoy a financial life free of stress, but you will also help your kids enjoy an equally good life by setting a good example. This is one of the life lessons you can pass on to your children, and it could benefit them forever. It is a win-win situation. You win and your children win, and your children winning makes you a winner in turn again.

In our last roundup we listed a couple of blogs that had recent posts about children and money. In case you’re looking for ideas, these bloggers write about how to deal with children and money. Check out that roundup and links to blog posts on “Children and Money”.