Teaching kids about saving money can be difficult unless you are able to find a way to make the process fun and interesting. If the process of saving money is too dry or boring kids have a hard time getting excited about saving. It’s important for my husband and me to teach our boys the value of money and to hopefully instill good saving skills that will follow them through adulthood.
There have been many times when my kids are handed money (either for completing chores or as a gift) and they just want to blow it right away. I get it, they are kids and it’s fun to spend. But now is the time to teach them how to set goals and save up for them. This will teach them financial responsibility and will help prepare them for their own fiscal futures.
I’ve put together a few fun money-saving tips for kids that can help spice up the traditional “piggy bank” method of childhood savings.
Assign Different Types of Savings
Not all money that kids save needs to be tucked away for their future. Part of saving money when you are a kid is getting to spend it on something exciting! Help your kids set up a few different types of savings jars or accounts if you prefer to have the money someplace secure like a bank or other financial account.
For example; you could use a “Spending”, “Savings”, and “Giving” jar or account. When they come across money you can help them decide how much should go in each place. They’ll learn a few lessons here; how to finance their goals, how to be generous to those less fortunate, and why it is important to only spend some of their money instead of all. You can make some really adorable jars with recycled pickle jars or mason jars.
Work on DIY and Upcycle Projects
This works on a few levels as a fun money-saving tip for kids. This can help you and your child find activities to do together that do not cost much money. It is always nice to spend quality time with your kids and not have to spend a bunch of cash. You can also find projects that turn things they already own into new, more exciting items. This will help kids realize that they can repurpose a lot of what they already own without having to spend their hard-earned allowance.
Pause That Purchase
This is one of my favorite ways to keep kids from making frivolous purchases (I even use it on myself sometimes). Before they are allowed to rush out and buy anything encourage them to “Pause that Purchase”. Essentially it is just a waiting period; set a limit of maybe 30 days. If in 30 days they are still very excited and interested in the product they will likely use it and enjoy it to its full value. This will keep them from spending money on something that they will likely regret purchasing.
A good way to keep this system fun is to reward them for making positive choices. If they are able to wait 30 days without excessive whining and pasting reward them with a little treat or assistance with their purchase. If in 30 days they are able to realize that they didn’t really need or want that item you might be able to use a small reward to encourage them to continue to use this system in the future to make smart purchases.
Chances are that siblings do not need the same toy. Instead of having two or three of the same product, encourage them to share their toys. If everyone shares they are able to get three new toys each instead of just one. This is also a great way to work in the secondhand items conversation. Not all new items need to be brand new. There are tons of great thrift stores and secondhand stores that sell like-new products for a cheaper price. Encourage your kids to opt for secondhand items so they can save money and still have the products they enjoy.
Teach Entrepreneurial Skills
If you have a motivated little one on your hands teach them some entrepreneurial skills. Help them start a small business so they can reach their financial goals. Selling lemonade, mowing lawns, Etsy shops, and even eBay can be a great resource for kids who have goals to boost their savings. These little “shops” can teach them a great deal about business but in a fun and exciting way that does not have to feel like work.
No matter what your children are saving for there are tons of fun ways to encourage them to save.
How do you get your kids to save their money?