4 ways to raise super savers

If you have kids in your life, you may wonder if they ever listen to you, especially during those sometimes trying teen years.

Here’s the good news. More than any other factor, super savers¹ named their parents as the greatest influence on their savings habits.² So some of those messages must be sinking in.

Super savers are contributing to their retirement accounts at a high rate, often maxing out their retirement contributions. There’s a lot to learn from them about helping young adults save, especially as they enter the workforce. Here are tips you can use with kids in your life to help them become super savers.

1. Acknowledge sacrifice.

Prepare kids to set priorities and make some sacrifices so they can save more. Super Savers report they save at high rates by:

• Driving older cars
• Owning moderately priced homes
• Not traveling as much as they prefer²

2. Motivate them to be prepared.

Super Savers say it’s important to be prepared for the unexpected, with 97% saying they have an emergency fund.² Talking about which expenses qualify as an emergency can get kids thinking about how they might prepare for a surprise expense someday.

3. Encourage doing your homework.

A majority of Super Savers report they learned little about personal finances in school.² So you can give kids an extra advantage by inspiring them to be curious and do their homework on finances. As they enter the workforce, encourage them to set a meeting with a financial professional. Other great steps are attending seminars or workshops, using online resources and taking advantage of education from their retirement plan provider.

4. Focus on the big picture.

Overall, super savers offer some basic tips for the younger generation. Top tips include living within your means, saving 10% of your pay for retirement, paying off your credit card balance each month, and saving enough to receive the maximum employer match.²