We all know that developing a savings habit can be difficult.  I was lucky to develop mine at a young age. I got a job walking a neighbor’s dog three times a day and for my efforts I got a $5 bill every Friday, which I would then take to the local United Jersey branch in my hometown and deposit.  Rinse and repeat for 52 weeks and you have a habit.

What if you asked your students what their savings habits are? If they don’t have one, have them listen to this audio from Marketplace Money and see if they can develop their own plan.  Here is the story they will hear/read about in the accompanying article:

“For the last year and a half or so, I have undertaken a project, along with my fiancée, to not spend any $5 bills. Every $5 bill that we come in contact with, we’ve been putting aside. We don’t spend it, and we put it aside in our apartment. And we’re saving this money for our wedding party.”

After two years of socking away every $5 bill he received, it was time for the big day. No, not quite wedding day, which happens this weekend, but Jody was willing to pop open the two coffee cans filled with fives and show us how much money he saved.

I like this key point made at the end of the article about the importance of developing a habit that works for you:

“So I want to caution against that a little bit, and not say everyone should try this $5 trick. It worked for me. I think the larger lesson on why it worked for me — which was pick something simple, change your default — I think are applicable to a lot of people.”

Saving $5 bills may be difficult for HS students but what if they took their spare change every day (might not work if they use their debit card for purchases) .  See what they can come up with (or what they are already doing)…

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.