3 easy steps to help your kids reach their savings goals

Help your kid reach their savings goals by teaching them to save for what they want now–and future goals too.

By: The Family Money Team

12.20.2021

3 minute read

Put it in the Vault: Why saving is important

Three steps to help your kid save for what they want now—and build saving skills for a lifetime along the way.

• Encourage kids to set savings goals.

• Create a plan to help them save. Saving first, buying later is a powerful tool for meeting those goals.

• Offer incentives to avoid power struggles and let kids experience the power of saving.

So how much should kids save in the Vault? It depends on several factors, including age, how much money they receive, and where it comes from--including allowance, chores, or jobs. At some point, if parents force kids to save, they may resist, rightfully claiming, “it’s my money!” That can create some unnecessary and counterproductive power plays. But there are alternatives, instead of requiring them to save, help kids clarify what they want, develop a plan to save, and provide incentives to help them meet their goal. By using the Vault feature in the Family Money app, kids can watch those savings grow.

Here’s how to help kids get started using the Vault in Family Money.

Step 1. Help your kids set savings goals.

What do you want? Start small, with things that won’t take too much time to save. These goals should be things they care about, not necessarily a goal chosen for them. Your goal in this equation is to teach kids to appreciate the power of saving regularly.

Step 2. Help kids build a plan.

If the goal is to save $30 for a new pair of headphones, there are many ways to save money in the Vault to make that purchase. For example, if their allowance is $15 a week, it would take two weeks to save for the headphones—if they save it all, which is neither practical nor recommended. If they save half their allowance, meeting this goal would take four weeks; saving 25 percent would take eight weeks—that’s a lot of gratification for them to delay!

Talk with your kids about finding some other ways to save by cutting out other common purchases, and explain how that money could go towards their goals. For example:

 Prioritizing Purchases Using Family Money App To Reach Savings Goals

1 ride share trip across town = 1 pair of headphones

2+ home delivery pizzas = 1 pair of headphones

3 new video games = 1 pair of headphones

Step 3. Offer incentives to save.

The younger the child, the harder time they’ll have delaying gratification for more than, at best, a few weeks. Incentives enable them to reach their savings goals faster and, ultimately, motivate them to save in the future, when the stakes are higher.

Matching grants from a parent can be dollar for dollar or 50 cents for each dollar they put in the Vault. Or you can offer to pay interest of, say, 10 or 20 percent in the form of an allowance to sweeten their pot.

As children successfully meet their savings goals, they’ll develop a sense of pride in their accomplishment, want to set new and bigger goals, and develop the habit of saving. By the time kids launch into the working world, they will be much better prepared to meet tomorrow’s challenges if they are committed to saving.This will “Vault” them into a cycle of success!

Vault your kids into the habit of saving and onto a cycle of success: Try Family Money on us for 30 days.*

*Trial & Auto-Renew Terms apply. Monthly fee of $5.99 automatically debited after trial ends unless you cancel. You can cancel within Settings in the app. Other fees may apply.

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