Episode 13 : Natural Spender vs. Natural Saver

Today, I will be talking about the difference between a natural spender vs. a natural saver. Which one do you think you are? Find out that and more in episode 13 of the Cash Kid Podcast. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Saver or Spender?

Hey Cash Kids, welcome to the Cash Kid Podcast. We love how this audience is getting so engaged and tuning in each week. I wanted to make sure you knew to check out our new website, cashkidpodcast.com. You can read through transcripts there, listen to episodes, and get helpful links about things we’ve discussed, like the stock market game in episode 8. 

Alright, a couple of episodes ago we went over the 4 different types of spenders. I said then, we would dive deeper into this topic. If you didn’t catch that episode, be sure to go back and listen to episode 9, “What Kind of Spender are you.” Today, we want to break it down further to find out if you are a “natural spender” or are you a “natural saver.” We actually develop these traits early in life and being either of them is not wrong. But understanding what type you are, can help you to recognize your strengths and weaknesses in finance, and set you up for better financial success. So, let’s get started. The Cash Kid podcast is underway!

Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday (Here you go sweetie.) Thanks grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid. (cash register)

So everyone in life is either considered a natural spender or a natural saver. Now normally a natural spender would be somebody that if they get some money, they'll go out and spend it right away on something they really like. I mean, they like to spend money and get new things. A spender is more carefree with their cash. They  like to live in the moment and spenders just get more pleasure from spending. Think of it like this on a kid level. Let’s say you are at the ballpark and  your Mom gives you five dollars to go to the concession stand. She didn’t tell you what to get. A spender sees that $5 as all his and ready to spend in this one trip to the concession stand. They’ll walk away with lots of loot… but zero cash left over. 

They lived in the moment to take advantage of the opportunity to spend. A negative side to being a natural spender is impulse buying… like seeing something you like in a store, not thinking much about the purchase and buying immediately. Sometimes spenders also spend just for the desire to keep up with others. You know the saying, “Keeping up with the Jones.” Well, the Jones may be in debt too…so, just remember that. 

Spenders also though are usually more giving. They aren’t so wrapped up in their money that they aren’t willing to quickly give to help others. They see a need and like to fulfill that need to help others. They also are usually the ones who seek more fun and see the value in spending the money to make memorable trips to walk away with memorable experiences.

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Then there's a natural saver.  This type will normally save up their money until they need something. While spenders get more pleasure from spending their money, savers get more gratitude from saving it. They are usually more patient and responsible. So, back to the example of your Mom giving you five dollars to go to the concession stand. The saver may only spend what they need and keep the rest for later. (Because I’m not giving my Mom back change unless she ask, right kids?!)

Savers really think about a purchase. They may ask questions like, “Will I really use this? Is this really the best price? Maybe I should wait until it’s on sale. Will this be a wasted purchase?.” Spending money for them may create fear and sometimes they forego spending on things they actually need. They’ll do without that vacation, or new clothes just for the sake to have more saved away. A saver is also usually not as generous with their money.

But savers, usually have the most money saved up for retirement and live below their means. 

Now, again, it's not wrong to be either of these type types of people, so if you're a parent listen to this and thinking, “Oh no my son's a spender. He'll never have any money in his life because he’s a spender.” Don't worry! You can help guide them to make wiser choices. Recognize the personality trait early can be a really big step in order to achieving financial goals. Learning to be a wise spender can include learning how to save at the same time.

Also if you have a natural saver, then you need to teach your saver how to still spend money because spending money is a necessity in life.

This makes me think of an activity we did at my elementary school. We would hold what’s called “Market Days.” For market days, we would have to create something to sale or sale a service that our classmates could buy. We were each given a certain amount of money to spend each market day, plus any earnings we made. You could see some clear personality traits emerge from these market days of recognizing who is a spender and who is a saver. Some kids would make some cash and then go and spend it all buying up every game or handmade treat or toy they could buy. While others were focused on doing the most business and walking away with having the most money at the end of the day. I didn’t think about it at the time, but these activities started to show us students what type we are, and recognize it.

But again, as we’ve discussed, there are pros and cons to both sides here. As we grow up, our personalities are forming. But as they are, I think it’s a good practice to recognize these personality traits and guide us into making wise choices. Let’s form good habits now to carry with us. Remember, anyone can be a cash kid, you just have to learn how to become one.

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That wraps it up for today Cash Kid episode. Be sure to visit me at cashkidpodcast.com for new episodes, follow me on Instagram, or my YouTube channel. If you go to my website make sure that you subscribe to the mailing list so you can receive emails when a new episode comes out. That's it for today, Cash Kid out!

Disclaimer:

The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.