Whenever you watch a show that focuses on kids earning money, it usually ends with the child reaching their goal and getting out a hammer to smash their piggy bank. This image has always bothered me. I think that it is because I cringe at the idea of breaking something that way. Whenever I wanted to get my money out, I would fish the money out slowly or shake it out of the bank.
Similarly as adults how do we react when we reach a savings goal? The savings goal could be enough money for a down payment on a house, a new car or your retirement goal. Do you smash your piggy bank wide open and spend the money as quickly as you can? Or do you take your time carefully fishing the money out of your bank and research your shopping decision?
Although you may be excited because you have reached your savings goal, it is important to carefully weigh the spending options you have in front of you. You should carefully research, negotiate and possibly wait for a sale on the item. This can help all the hard work and sacrifice that went into saving your money benefit you even more. By waiting a few weeks you may be able to upgrade to a nicer model than you had originally planned on or you may be able to buy a side table to match your new couch.
It is important to take the time to teach these concepts to you children. Of course there is a lot of satisfaction in reaching the goal, and you should not detract from that. (If they really want to smash the pig open let them.) But by showing your children how to comparison shop, and to weigh the value of wanted and needed features, you will be doing them an additional service when it comes to teaching them about money.
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