Lessons from an Uncle: The Long-Term Benefits of Consistent Savings

The Value of Saving: My Uncle’s Financial Wisdom

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Childhood Money Lessons

• My uncle taught me the value of long-term savings by depositing money into a savings account instead of giving me presents.
• At the age of 22, he handed over $6,000 he’d saved for me, teaching me the power of consistent saving.
• His lesson on how small, regular contributions can accumulate over time has shaped my financial habits.

In my childhood, I associated money with immediate purchases. I would plan my Christmas wishlist from a Toys R Us catalog and saved dollars for treats like ice cream or nail polish. Whenever I received money, I would think about how to spend it.

Saving Versus Spending

My uncle gave me a different perspective on money. Instead of buying me birthday or holiday presents, he would deposit money into a savings account. He promised that when I was older, I would get access to these savings.

As a child, this concept was difficult to understand. It felt as if there was no present if I couldn’t see it. I even felt that my uncle had forgotten my birthday, despite his reassurances. However, over time, these conversations about “adult topics” like savings became familiar and comforting.

Reaping the Benefits of Saving

After I graduated from college, my uncle handed over the bankbook containing the money he’d saved for me. Over the years, he had accumulated over $6,000. Instead of buying me fleeting gifts, he had prepared me for financial independence.

He advised me to deposit the money into a bank account and continue growing it. He suggested I could use the savings for a down payment on a house in the future. Seeing the actual sum helped me understand how small, regular contributions can accumulate over time.

Applying His Savings Lesson

Since receiving my uncle’s savings, I have taken his advice to heart. I regularly deposit a small portion of my paycheck into my savings account and into a retirement account. Even if these deposits are modest, they add up over time. This has helped me grow my savings by thousands of dollars over the past decade.

Though I haven’t bought my dream house yet, I understand how small, consistent savings can accumulate over time. This has reshaped my approach to money and motivated me to continue saving for my future home and other expenses.

Originally published in October 2022.