Would you like to raise your children to be wise money managers? 

 

Teach them to be two-marshmallow kids.  In other words, teach them how to wait.

 
Over 40 years ago, Stanford University psychologist Walter Mischel conducted what has become perhaps the most famous experiment on the power of delayed gratification. 

 

Four-year-olds were taken into a room one at a time by a researcher.  The children were seated at a table.  In front of them was a plate with two marshmallows.  The children were told that the researcher had to leave the room for a little bit and that while he was gone they could eat one marshmallow right away.  Or, if they could wait for the researcher to return, they could eat both marshmallows.

 

Years later, after the children graduated from high school, Mischel followed up with them and found startling differences between the two groups. The children who could hold out for both marshmallows were found to be more confident, effective, self-assertive, and dependable. They were better able to cope with the frustrations of life, less held back by stress, more likely to embrace challenges, and still able to delay gratification in pursuit of their goals.

 

The ability to delay gratification is also one of the most important keys to wise money management. Being able to wait is what separates the “buy now!” person from the buy smart person.  It’s what enables people to put off replacing an old car in favor of paying down debt, or to patiently save for a distant goal like retirement. 

 

What’s the secret to delayed gratification? 

 

The marshmallow experiment kids who won their battle with temptation simply diverted their attention away from the treats. They closed their eyes, made up games, and even talked or sang to themselves in order to pass the time until the researcher returned. 

Learn How to Foster the Ability to Delay Gratification in Your Children