Wouldn’t it be amazing if saving for kids (YOUR kids) was second nature? Let me show you how to get there.
Have you ever noticed that, aside from that 10% or so of kids who seem to have been born with a money-hoarding mentality, saving for kids is about as “second nature” as driving a car for the first time?
I want to tell you not to worry, because savings can eventually become second nature, especially with the tips I’m about to share below.
Tip #1: Designate a Savings Space
If you set up the expectation that there should be some savings, chances are better that it will actually happen. So, set up some savings space for your child, whether that be in a jar, cool piggy banks, at a bank (here's one of the best accounts to start for a child), or anywhere in-between.
Tip #2: Let them Name their Savings Space
The easiest way to get a child to care about saving money is by getting down to a savings goal for something they want to be/do/have. I talk about that much more in depth here. Once they have that savings goal narrowed down?
Psst: Here’s a 1-page guide you can go through with your child to narrow down all the things they want to do/be/have to the one with the quickest win to start their target savings journey.
Then you want to encourage them to name their savings space something fun having to do with it. You could put a label on the outside of a mason jar, or add a nickname to their savings account online to do this.
Tip #3: Set Up a Consistent Kid Money System
Let me ask you something. So, your boss gives you a $1000 check this week. And two weeks ago? It was $2600. And then two weeks from now rolls around. Guess what? You get nothing.
You’re probably feeling kind of flabbergasted, right? Worse yet, since you don’t have consistency in what you’ll be receiving, you can’t really plan for anything, you’re putting out fires, and you don’t trust that the money is coming so you aren’t putting anything into savings knowing that more will be coming soon.
Your Kid Money System matters, and if it’s not consistent, then your child probably won’t save money. Your child needs to know when they’ll be receiving money and how much they’ll be receiving, in order to plan ahead for spending (which really means, in order for them to feel like they can actually save money and even create a savings goal, instead of spending all of it today).
Pssst…Not sure how your Kid Money System stacks up? Click the image below to download a free Kid Money System Scoresheet.
Not only does your Kid Money System need to be consistent, but it also needs to have clear money boundaries and responsibilities outlined so that your child understands WHAT they are responsible for and what you are responsible for paying.
Because let’s be honest: if you thought YOUR Mom was paying for your new sneakers, would you save a penny for them? Heck, no! I sure wouldn’t (Mom, if you’re out there, I’d like the Nikes).