How to Save Money as a Kid: Tips and Tricks for Building Your Savings

Kids start learning about money right from when they are toddlers. At this stage, they love shiny things already and know that money is valuable.

As a parent, you can also save for your children’s future and, in the process, show them how to manage their finances. This is the best way to teach your child to become an independent adult.

When kids become old enough, they can learn to save money for themselves without their parent’s input.

Why is saving money important as a kid?

Learning about money management from a young age will mean you are more likely to become an adult who has a good relationship with money. This is why you should learn about money management as a kid – so that you can master the art of money management, something that many adults still haven’t grasped today. When you master this right from a young age will set you up for life and help you excel in many ways.

So how exactly can you save money as a kid? We have listed some ways you can start below.

Tips and Tricks for building your savings

Do you get pocket money from your parents? If you do, you don’t have to spend it all. Instead, you can save a small amount of the money you receive and then put it in your savings account. A piggy bank is also acceptable if you don’t have a savings account.  

In addition: 

• Remember that no amount is too small. Put the money in your piggy bank or savings account.
• You can watch the money accumulate over time.
• Keep counting the money you have saved to motivate yourself to save more.

Track your expenses

As a kid, you won’t have too many expenses anyway, but you should keep a record of your current ones.

Then, ask yourself the following questions as you decide whether to cancel or keep making the payments.

• Out of your existing expenses, are there any you could avoid paying for?
• Can you get your parents to pay for any of your expenses?
• Are there any expenses you won’t miss if you cancel?
• Are there any cheaper alternatives?   

Create a budget

Once you have listed all your expenses, it’s time to start making a budget sheet; you can use Excel to list all your expenses and then list how much money you get weekly or monthly  (via pocket money or part-time job).

Use formulas to subtract all your expenses from your income and then see how much you are left to save every week. Once you know the cost of your living expenses, you can start to make smart decisions about your spending. For example, you might decide that going to the mall every day with your friends after school is not a good idea. Or you might decide you can only go once a week rather than every day.

Earn and Save

Is there any way you can get a part-time job? Perhaps you can get a weekend job instead or find a way to help around the house in exchange for more pocket money. There are many opportunities to increase your earnings.

For example, you can also: 

• Ask family and friends for opportunities to help them in exchange for money.
• Ask shop owners from your local area if they are hiring.
• Ask neighbours if they need help mowing the lawn/ taking out the bins etc., in exchange for money. 

These activities will also teach you about the value of hard work. Once you start earning regular income, you can save even more money.

Embrace smart purchases

Are there any purchases you have planned? Perhaps you saved for a long time to get a valuable item. These are smart purchases because they were well thought out, and you didn’t pay for them with money you could have used for something else. 

As you strive to reach your saving goals, you will learn that these things are just as essential to help you stay motivated, so keep saving.

Use banking services

Have you set up a savings account? Your parents can help to do this for you. If you have one set up, you can learn how to withdraw money, check your balance, and check how much interest you get from using the account to save. 

Some bank accounts give more interest than others. So, take your time to review and compare the different savings accounts you can set up. Involve your parents too because they will have a lot of valuable advice that can help you.

Invest your money

Are you familiar with investing? Investing is a great way to build wealth over a long period. With time on your side, you can invest for years and years and build generational wealth. You can learn about investing by downloading investment apps for minors.

You can use many investment apps to learn about stocks and shares, invest in real companies, and more. You can also watch interactive videos and learn through fun tests and quizzes about investing.

Where can you seek support and learn from others about money management?

If you are serious about learning to save – it’s a good idea to talk to other like-minded people who have managed to do the same. You can watch videos about saving tips for kids and learn what others have done to reach their saving goals.

Most importantly you should speak to your parents and ask for their advice. You might learn a few tricks from how they were able to save money when they were kids too. Perhaps they did some lawn mowing, in exchange for cash. They might even have had a garage sale, worked at a local shop, or even helped their neighbours in exchange for money.

In closing, you can learn to save in many ways as a kid. You can increase your earning potential at home and learn to budget and cut costs. By understanding the fundamentals of saving, you will have mastered a life skill that will help you in the future.