Saving money as a kid can be challenging, with a lack of income and resources making it hard to save. Luckily, in this article, I’ll be sharing nine great ways to save money as a kid.
Whether you are trying to save up for a new console or gadget, it’s not easy without clear guidance or instructions.
Saving money is a super valuable skill to learn, especially if you’re under 18.
Anyways, let’s get into a few common questions before we get started on the nine methods.
Should I save my money as a kid?
Saving money is a valuable skill that all kids should do, regardless of the amount. It’s an essential life skill that will help you save for important things in the future like:
- A car
- An emergency fund
- House deposit
While you probably won’t start saving for these things yet, learning how to save at a young age instills good financial habits that will help you tremendously when you are older.
What should you save up for?
After you’ve saved up some money, you can spend it on whatever you like. That’s the great thing about saving money; once it’s saved, you can buy whatever you desire (as long as it fits the budget).
Some ideas on what to save up for:
- A new bike
- Books or board games
- A camera
- Gaming console (Xbox One X or PS5)
- A new phone (iPhone, Samsung, e.g.)
- LEGO sets
How can I save money as a kid?
1. Make a savings goal
Instead of saving money aimlessly, an excellent habit to form is to create a savings goal.
A good savings goal is:
Specific: What do you want to save for? E.g., I want to save for a PS5.
Measurable: How much do you plan to save? E.g., A PS5 costs $499.
Attainable: Is it realistic to save for? E.g., Yes, if I complete more chores and jobs, I can save up quicker.
Relevant: Is it worth saving for? E.g., Yes, because I want to play games with my friends.
Timebound: How long will it take to meet the goal? E.g., six months if I save around $20 a week.
Using a SMART savings goal like the example listed above will help you identify how much you need to save for the item you want to buy.
Also, a savings goal written down will decrease impulse and silly purchases, helping you reach your goal quicker!
2. Track your spending
A great way to save money is to track your spending every week. Instead of just spending money and forgetting about it, write down all of the purchases you make throughout the week.
It may be annoying at first, but it’ll help show you where and how you spend your money.
E.g., I used to spend $15 a week on snacks and candy. I’ve now cut it down to spending only $5 a week on those items and now save an extra $10 a week, which works out to $520 a year.
See! I’ve cut down on unnecessary expenses and saved over $500 a year from it by tracking my spending. It’s that simple and will help you save faster towards your saving goal.
3. Use a savings jar
Another easy way to save money as a kid is to use a savings jar, tin, or piggy bank. This way, once you put the money in the jar, you simply cannot get it out.
It’s an ideal situation if you aren’t good at saving money, and it’s excellent to save extra pocket money or small notes.
A good habit to follow is to start a savings jar on January 1st and open it on Christmas day. This way, you’ll be able to buy cool products and gadgets with the Boxing Day sales.
4. Join a savings challenge
Another fun way to save money as a kid is to participate in a savings challenge. If you don’t know what a savings challenge is, I’ll quickly explain it.
A money savings challenge is a fun challenge that you can start at any time throughout the year. The challenges help you save money throughout a year and range from $500 – $10,000+.
All you need to do is choose a circle every week, save the amount specified, and color the ring in. At the end of the 52 weeks, you’ll have saved up the predetermined amount (like $1000).
Note: These savings challenges can easily be adjusted to saving every two weeks instead of one. I’ve created multiple challenges to cater to different allowances/incomes.
5. Do household chores
If you’d like to save more money, another great way is to make more money. Asking your parents for a weekly allowance in return for doing household chores is a great way to start.
I remember getting $5 a week for doing the dishes (and cleaning), which later got bumped up to $10 a week for doing more responsibilities. You could ask for a similar amount. 😃
Here are some chores you could complete for a weekly allowance:
- Pack and unload the dishwasher
- Vacuum the house
- Mow the lawns
- Do laundry
- Help cook meals (with supervision)
- Take your dog for a walk
Not only will you be earning more money each week, but you’ll also be able to save more money. Another plus is that doing chores helps you to learn essential life skills. I know it sounds super dull now, but you’ll be grateful in years to come.
6. Separate spendings from savings
Another excellent money habit to form is to separate your spending from your savings. Instead of having all of your money in one area, you should split it into two categories: spending & savings.
Let’s say you make $20 a week. You could immediately put $10 into a savings jar, with the other $10 being allowed to be spent on anything.
This way, you aren’t sacrificing anything. You get the best of both worlds by still saving money every week and being allowed to spend money on whatever you want.
I find this method a lot more sustainable than just saving 100% of your allowance or income.
Recommended read: How to Make $500 in a Month [15 Easy Methods]
7. Write a good Birthday/Christmas wishlist
Instead of spending your hard-earned money on expensive products or gadgets, you should write up a good birthday and Christmas wishlist.
You could include consoles or gadgets that may be too expensive to purchase on your own, or even offer to pay for half, with your parents paying the remainder.
Doing this will help you save extra money, and you’ll be able to save for other things instead.
Just remember to cut your parents some slack if they don’t get you the newest tech product; they’ve got bills and a mortgage/rent to pay, so be thankful for whatever gifts you receive.
8. Make more money
A simple way to save more money is to make more money. Instead of relying solely on an allowance, ask your parents if you can do more chores around the house for more money.
You could also do tasks around your neighborhood for some extra cash.
Here are some simple ways to make more money as a kid:
- Do dog walking for neighbors and friends
- Wash cars
- Make a garage sale
- Mow lawns
- Clean windows
- Do gardening
Not only will you be able to make and save more money, but you’ll also learn some valuable life experiences and lessons that will help you in years to come.
9. Open up a kids bank account
If you’re super passionate about saving money, it might be a good option to open up a savings account at a bank. If you’re under 14 years old, you’ll need a parent to help you open the account.
Opening up a bank account will help you keep all of your money in one dedicated spot and teach you to manage your money correctly.
Bank accounts also have interest rates, meaning that you’ll earn a little bit of money without having to do any extra work.
E.g., If you had $1000 in a bank with 1% p.a., then you’ll make $10 in a year (if you didn’t withdraw any money).
So there we have nine different ways to save money as a kid.
Hopefully, you’ll be able to implement some of these ideas to help you save more money throughout the year. Remember that habits take around 21 days to form, so don’t worry if you fail to save initially.
Learning how to save money as a kid will also tremendously help you with your finances for the remainder of your life.
Implementing good money habits from a young age will teach you to prioritize your spending in the correct places. It will also lead to a promising future with money.