Kids & Money – 5 Tips on Getting Them to Save

My son has a ton of money. In fact, he often has more than me and there have been occasions when he has loaned me money. I almost always pay him back.

But he is a saver. Every cent we give him, gets hoarded away for some rainy day.

My daugher…well she has nice shoes. And toys. And purses. She is not much of saver.

Janet Bodnar, Editor of Kiplinger’s Personal Finance, recently wrote a post titled Getting Kids to Start Saving Money. In her post, she starts off by sharing some recent survey findings: “parents overwhelmingly feel it’s their responsibility to teach their kids about money and savings but that they don’t always follow through.”

This is me exactly. I know that I need to teach my kids about money. I need to get them to save money. But honestly, sometimes I just don’t know where to start.

And this is unusual for me because for the longest time (before kids, of course) I was a saver myself. I saved money for years from the time I started working. When I bought my first house, I put 30% down.

When I found out I was pregnant with our first child, I started a savings accounts for him and immediately joined Upromise where I began saving college money for this unborn child as well.

Janet shares some great tips on getting your child to save:

1. Start with a piggy bank.

We did this right. All three of my kids have their own piggy banks. My kids started saving when we would do laundry. My husband would always leave change in the pockets of his pants and my kids would fight over who got to sort his clothes into piles for washing. It was a great way to get laundry done and a great way for kids to save.

2. Set simple goals that are short-term and easy to achieve.

We do all of the time. My daughter rips pictures of things she wants out of magazines and tapes them to the back of her door. My son draws pictures of things he wants. These small goals allow them to save up for something.

3. Have them cover one of their own bills.

My dad did this with me when I got my first car. I had to pay for gas and insurance. I was extremely frugal with my money.

When my son wanted to join Club Penguin, we had him pay the monthly fee from his allowance. He was happy to do it but the key was given him the allowance he earned and then having him pay us back. When they money changed hands, he felt good knowing that he paid his own way.

4. Have your child open a savings account.

All three of my kids just opened their own savings accounts. My son loves getting his statements and seeing how much money he has in his account.

5. Divide up the money.

My son’s piggy bank has four sections in it. They are: Spend, Save, Invest, Donate. When we first got this piggy bank, it was fun explaining to him all of the ways he could save money.


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Photo Source: Microsoft Stock Images

Article Posted 5 years Ago

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