Savings accounts for kids don’t have to be hard to fund, even if you’re living paycheck to paycheck
You’ve set up a savings account for kids in your family (wait, you haven’t yet? No worries. Here’s exactly what you need to do + how to score your child a $25 opening bonus).
And while there’s plenty of activities for your kid to do with their account instead of letting it collect dust, chances are, you + your kiddo want to see it grow.
I mean, if they watch it grow (cue big eyes each time they log in to see its climbing value), then they’ll be more apt to funnel even more money into it, right?
The best way to see savings account for kids grow is by having your child fund it with part of their allowance. The second best way is for you to fund it yourself.
But instead of offering you the same old tips about how to teach kids to save through incentives such as matching their savings, I’ve got 4 unique ways to increase their saving accounts’ bottom line.
Psst: Already stretched thin and don’t have extra funds to add to a savings account for kids? Then ideas #1 and #4 are specifically for you.
#1: Grocery Store Coupon Savings they Clip + Use
Have you enlisted your child to help you at the grocery store yet, like I detailed in 4 Unique Grocery Store Games for Kids?
One of the ways I outlined in there to get your kid involved with helping you was to give them your grocery list ahead of time so that they can clip/print out coupons that align with things you’re going to buy anyway. Then as a bonus incentive, I suggested that you supplement their allowance with any savings they reaped you.
Instead of supplementing their allowance, take the savings they reap you through specific coupons used and deposit it into savings account for kids.
You’ll need your grocery list already written out, plus a Sunday paper. Don’t usually get the Sunday paper chocked full of coupons? Then have your child scour the following online coupon sites:
Mama Bear Action: Retain each of your grocery store receipts for the month. At the end of each month, sit down with your child and have them add up all of the coupon savings from each receipt. Be sure they add up just actual coupon savings, not overall store savings! Then either write them a check to deposit together into their savings account, or transfer the money over from your checking to their savings.
#2: Double their Interest Earnings
Through the Compound Interest Detective Activity, your child learns a bit about interest and how it can compound to really grow their savings.
If your child hasn’t gone through that activity, then just sit down with them and find the interest rate.
Offer to double that interest rate, explaining to them that the more money they put into savings, the more money they will earn from your special bonus you’re giving.
Mama Bear Action: Each month (or quarter, depending on when interest hits their account) have your child log into their saving account. Look at the amount of interest earned, then have them watch you put that same amount into their account either by writing them a check (you could name it “savings bonus” in the notes section), or transferring from your checking account.
#3: Give Bonuses through Digit.co
Have you ever heard of Digit.co? This is an amazing free (now $2.99/month) savings tool that analyzes your checking account for bills + spending + income, and then automatically withdraws amounts between $5-$50 every few days into a savings account based on what you can afford.
It’s pretty epic.
I wrote an entire post about my experience with “finding” $509.97 in about two months thanks to this tool when we were in need of money for Christmas. What a lifesaver!
So why not set this cool tool up, then use the money siphoned off from your checking to occasionally fund your savings account for kids? You could call these savings bonuses, getting your kids even more excited.
Reasons for Savings Bonuses could include:
- Stellar performance
- Extra work around the house
- Going above and beyond to help someone out (without prompting)
- Just because!
Mama Bear Action: Figure out why you would like to give savings bonuses in your own household, and whether or not you want to share this with your kids. Sign up for a Digit.co account, and start accumulating money to fund these bonuses.
#4: Through Your Internet Searches
I’ve been a heavy user of Swagbucks search engine for several years now. Actually, I’m so into it, that I looked up my stats:
- Joined: March 14, 2009 (what a glorious day)
- Swagbucks Earned: 205,255
- Points Cashed in for Actual Cash: $2027.79
Did you see where I said “cashed in for actual cash”? The cool thing about this is you can actually cash in your reward points as Paypal money, with no extra penalties for doing so. So whether you use those points for gift cards, merchandise, or pure cash, they’re worth the same.
Mama Bear Action: Instead of using Google as your search engine, switch to Swagbucks. With the reward points you earn, cash them in through Paypal and fund your savings account for kids. Seven years from now and $X,XXX dollars richer, you’ll be happy you did.
What are special ways you like to fund your kids’ savings accounts that are different from the norm?