Let’s talk about how to save money as a kid (and how to teach kids to save money as a parent).
I am going to give you some actionable tips to help kids save money (with or without a job). I’ve been there. My teenage years are behind me, but that doesn’t mean I don’t remember them well!
So how can you save money as a kid? Or if you’re the parent, how can you help your kids learn to save and manage their money?
Let’s talk about the best ways to save money as a kid in a debt crazed world.
How to Save Money Fast as a Teenager [or Kid]
These ways to save money fast for teens do not depend on having a stable job. I understand that most kids will not have a job until they are at least 15 if not older. But it’s never too early to teach kids how to save money.
1. Kids Should Understand The Value of Money
The very first thing that teens need to understand in order to effectively save money is the value of that money being saved. It’s easy for teens to ask dad or mom to buy them a new pair of shoes or pay their way through every summer or extracurricular activity at school. But do these teens know the exact value of these items? Do they know how many work hours were put toward earning those dollars?
Next time your teen asks you to pay for something that is not a necessity, explain to them how many minutes, hours, or even days of work it will take to cover the expense. To truly help them understand the value of money, require them to work on chores or volunteer in the community for the same number of hours it would take you to earn the money working. This is a great way to teach teens how to save money fast without requiring they get a job themselves.
2. Kids Should Go Grocery Shopping With Parents
I can’t tell you how long it took me to really know how to grocery shop based on value versus buying the best brand. Taking your teens grocery shopping with you multiple times and helping them understand price per unit (and downplay brand loyalty) will teach them how to save money.
No, your teens will not be grocery shopping for themselves anytime soon perhaps, but it will help them to look closely at price tags and apply their knowledge of the value of money. Yes, this can also apply to their personal trips to the snack aisle. Teens quickly blow their money on food simply because they don’t care to try different brands or skimp on volume.
3. Kids Should Save At Least 30% of All Earned / Gifted Money
Even if your teens don’t have jobs, chances are they’ve had opportunity to earn bits of money here and there (also, the same goes for those who do have a job). With each paycheck, allowance earning or monetary gift, have your teens set aside at least 30% into savings. This savings fund could be for new shoes, an Xbox or even college, but the idea is to teach them to value their ability to save money.
4. Kids Can Earn Money Doing Side Jobs
Perhaps your teens do not get an allowance, have no summer jobs and rarely receive gifts of money. That’s okay – this is exactly how I grew up and I think I turned out pretty well when it comes to managing money. But this is where a different kind of responsibility comes in. If your teens need to save money for something special, encourage them to pick up small side jobs that they can do in their spare time.
5. Kids Can Learn By Seeing A Parent’s Example
The best way to save money as a kid is for you to set a great example. Budgeting, tithing or donating to charity, setting aside money into savings and diligently earning extra money when possible are all great examples that we as parents can set for our kids.
Are you saving money and sharing those goals with your kids? If not, perhaps you need more help saving money yourself than learning how to save money as a kid – you need to learn how to save money as an adult. And that’s okay, we’ve all been there!
How To Manage Your Money As A Teenager
Saving and managing money as a teen goes hand in hand. Once teenagers understand the importance of saving money and commit to do so, they are ready to manage larger amounts of money on their own. It’s good to oversee where your kids are spending money, but it’s also good to allow some freedoms to teach them how to manage their own money.
Save Money As A Kid
So there you have it. Teach your kids young to value and save money as a kid. This type of behavior is invaluable in a world that wreaks of debt.