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Wondering what is the best way to save money for kids? I’ve got you covered.

Though we didn’t plan ahead and specifically save money for our son before he was born, we were in a great place to start saving for children as soon as he made his debut in 2015.

I’m sharing my top 5 ways to save money so that you can implement them before, during or after pregnancy until you’ve reached a comfortable balance for your kids.

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ways to save money for kids

How To Save Money For Kids Despite Disagreements

Have you ever had a “money battle” with your significant other? The kind where you both legitimately feel like you are right and the other is wrong?

I can almost guarantee that 99.9% of couples have this problem at some point in their relationship. Oh, and even if you’re not in a relationship right now, listen up. Your time will come!

Well, this exact “money battle” has come up a few times in my marriage and it all comes down to one silly disagreement about money.

When my son was born in 2015, my husband decided to start a cash fund – he religiously placed all of his coins, $1s and $5s in a container to save it for our son.

Cute, right?!

For a while, I thought it was great. I thought, “for sure we’ll put this into a proper savings account when we hit X amount of money.”

Well, guess what.

When we hit X amount. My husband wanted nothing to do with the conversation about savings accounts and interest rates (bless his soul – he just didn’t get it) even though we were working together to save money for kids.

At first, I was upset! I have been intrigued by investing, interest and any type of residual income for what feels like my entire life! But he just didn’t have the same interest in numbers and income potential.

But then I showed him the numbers.

How Much Money Can We Save For Kids in 15 Years?

If we place $3,000 into a high yield savings account that pays 2.15% APY (compounded monthly) for our son and deposit $100 per month into the account for 15 years, we’ll have saved $25,359.69 for our son.

However, if we continued to stash $100 in cash in our home, then we’d save a flat $21,000 total in the next 15 years.

Simply opening a high yield savings account and saving the same amount of money, in the same amount of time, we’ll have saved an additional $4,359.69 by our son’s 18th birthday!

Not only that – but saving money in a bank is safer than potentially having the cash stolen, burned in a house fire or simply losing value due to inflation.


I know you might be wondering why I’m digging into our personal lives here. But maybe you really needed to hear it as my husband did!

I’m definitely not right about everything when we have disagreements. But I think that investing money is extremely important.

Saving Money For Kids Vs. Making Money

We can’t talk about finances without digging into the cold hard reality that saving money is just as important as making money.

Think of these scenarios.

If you make $50,000 in a year and you spend $52,000 that same year, where are you? In the red.

If you make $30,000 in a year and spend only $27,000 that same year, where are you? In the green!

My point here is that you can make more money, but at the end of the day, the amount of money you save (aka don’t spend) determines your financial status.

Please note that I am not a financial expert. I simply know how to save money based on my own life experiences. In 2013, the year that my husband and I tied the knot, we paid off about $30,000 in debt while on a low income.

Now, just over 5 years later (in our late 20s), we have a net worth in the lower 6-digits (and climbing every month). It is 100% possible to get yourself out of debt and well into the green in a short amount of time!

5 Ways to Save for Children

I know the preface to these money saving tips was long, but it’s important to know why we need to properly save and invest our money. So, what are some ways to save money for kids? Let’s dive in and talk about them now.

1. Budget and plan to save

If you don’t know how much money is coming in versus going out, there is no way to execute a savings plan. So, create a budget, create a plan based off of your budget, and start saving.

2. Open a high yield savings account

This step is the best way to save for children and it’s non-negotiable if you’re serious about saving money. Which action is smarter – saving a wad of cash under your mattress for a rainy day? Or placing that cash into a liquid savings account that will earn a decent amount of interest? I think the answer is clear. You can open a high yield savings account with CIT Bank in a matter of minutes.

3. Work a side job

If you’re struggling to make ends meet and feel like there is no extra money to put into savings, consider working a side job from home or working overtime at your day job. Put the extra money earned directly into savings rather than adding it into your previously determined household budget.

Other ways to make extra money:

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4. Invest and save on autopilot

Start small! You don’t need to make any huge decisions to jump into investing today. Try a simple investing method that you won’t even notice, just to get your feet wet. Once you see your progress, you’ll be looking for more opportunities to invest. Open an account with Acorns and invest anywhere from a few pennies to a few dollars a day by rounding up your everyday purchases to the nearest dollar.

5. Stop spending more money than you have

I know this tip sounds obvious, but it’s easy to overlook when you don’t keep track of your budget! If you truly want to save money for kids, it’s important to change your mindset and tell yourself to only purchase things that you need. Wants should always be set aside until your needs are met!

Even More Ways To Save Money

The money-saving methods above are not all-inclusive. They are just the 5 ways to save that worked the best for my family in our current living situation. There are more ways to save money that you can use to make the best of your financial future. Make sure to review them for more tips to saving!

How To Commit To Saving Money For Kids’ Future

Initially, committing yourself to save $10, $25, $50 or $100+ per month sounds intimidating. You just don’t know where that extra money will come from!

But I can tell you – once you review your spending versus your income and commit to a budget, you will start to find things that did not need to be purchased – things that are long gone and have nothing to show for them (like excessive restaurant dining or movie theater visits).

Once you commit to a savings plan, you will start to see your net worth grow, just like my husband and I have seen growth!

I would love to hear how you’re doing and work through some savings ideas with you. Comment below and let me know if you’ve committed to save money for kids!

I created The Pay At Home Parent in February of 2018 to help you be a successful home-based business owner, blogger or side hustler. As a wife, mom and frugal homemaker, I still make a full-time income on a part-time work schedule and I know that you can too!

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