Best Way To Save Money For Kids: 9 Tips To Teach Your Child

It is critical to pass on the lesson of saving to children, as it instills a sense of responsibility and builds the necessary groundwork for financial freedom in the future. For example, encouraging them to start a small venture, learning to budget, or even opening a savings account helps drive home the importance of saving money.

Start a lemonade stand

Benefits of running a small business

It’s neat to see kids learn hard work with a lemonade stand, however, this particular activity is meant more for kids aged six to twelve. During these ages children can start to communicate, comprehend the most basic concepts of money and calculations, and interact socially with the supervision of parents.

Kids will gain firsthand experience with managing money, such as calculating expenses and tracking profits simply through this activity. 

These tasks not only give kids an opportunity to earn money but also help them develop valuable life skills:

• Creative thinking: the children develop creative thinking through decorating the booth and inviting customers to buy their lemonade.
• Communication skills: Through the sales activity, the children will develop basic communication skills.
• Acquiring knowledge in a practical way: when directly selling, the children will gain a better understanding of concepts such as costs, selling prices, and profits, thereby forming a correct financial mindset.

How to get started

To be able to help the kids set up a lemonade stand and start selling, there are some steps that parents need to prepare to help the kids:

1. Choose a location with good foot traffic, such as a neighborhood park or near a community event.
2. Gather supplies like a table, pitchers, lemons, sugar, and disposable cups.
3. Help kids to create colorful signs to attract customers.
4. Exchange and guide the kids to price each cup of lemonade reasonably to ensure affordability and profitability.

Some possible locations to set up a lemonade stand:

• Near residential areas: A neighborhood where many families pass through.
• Park or playground: A place where children and parents gather in the afternoon or on weekends.
• School: Set up a booth during dismissal time (under parental supervision).
• Community events: Fairs, fundraisers, or outdoor events.

Saving earnings for the future

Selling lemonade is one of the good ways to help children understand money better. The kids can earn $45 to $50 a day. Also, this job helps them develop a saving mindset. Running a lemonade stand also fosters critical thinking and decision-making skills. Kids learn to evaluate the cost of supplies versus revenue, helping them make informed choices about pricing and spending. These experiences build a strong foundation for budgeting, an essential component of long-term financial success

Advise your child to funnel part of their proceeds to savings. For instance, they can allocate a quarter of their profits to a jar or a savings account for future goals, such as buying a toy or funding a hobby. This example illustrates the effective way to save money for kids by cultivating wise spending habits from an early age.

Sell handmade crafts

Sell handmade crafts

Types of crafts kids can make

Any child within the age bracket of 6 and above should be able to partake in crafting activities, provided that the level of the task’s complexity does not surpass their capability. In general, crafting is an activity that can be customed designed to accommodate people of different age groups and skills. This kind of work will be appropriate for children who enjoy crafts and are good at creativity with the materials.

Selling handmade products made by themselves will help children understand the value of labor. These tasks not only give kids an opportunity to earn money but also help them develop valuable life skills:

• Imagination and creativity
• Time management
• Basic communication skills when interacting with customers

The children can choose products that match their abilities and dexterity. Here are some suggestions for craft products suitable for children who love creativity:

• Friendship bracelets
• Painted rocks
• Origami decoration
• Handmade greeting card.
• Decorative gift box or paper bag.
• Paintings or wall decorations.

Selling online or at local events

Selling crafts at local events like school fairs or farmers’ markets can be a rewarding experience. Direct selling will help the children develop their communication skills and ability to connect with customers.

In addition, online platforms are also a great place for the items made by the kids to reach more potential customers. Parents can help the children promote handmade products by posting pictures of the items on online shopping platforms. Some popular platforms that can be considered:

• Esty: a specialized platform for handmade, vintage, and unique items, helping to attract the right audience interested in handicrafts.
• eBay: a diverse platform with a huge global customer base, helping to increase the opportunity to reach more people.

Learning to budget craft supplies

Budgeting craft supplies is a powerful way for kids to learn the value of managing money, a skill essential for effective saving. When children calculate the costs of materials like beads, paints, or paper, they begin to understand how expenses impact profit. For instance, if a child invests $10 on a material and later sells his drawings for $30, it is obvious that the child makes a profit of $20. The children can also sell several other merchandise such as necklaces, greeting cards, paintings, and bracelets in the range of $5 – $50.

By allocating a portion of this profit to savings, children start developing a habit of prioritizing long-term goals over immediate spending. This practice strengthens their ability to make thoughtful financial decisions, helping them appreciate the importance of setting aside money for future needs. Additionally, budgeting fosters problem-solving skills as kids explore creative ways to minimize costs, such as buying in bulk or repurposing materials. This method reinforces the best way to save money for kids by emphasizing smart spending and saving practices.

Offer yard work services

Providing landscaping services is an excellent method for children to learn the value of earning and saving money. This activity is especially appealing to children who are 10 years and older, who like spending time outside and are physically capable of doing these jobs.

Some suggested jobs that the kids can try:

• Mowing lawns: Ideal for older children who can handle basic equipment safely with guidance.
• Raking leaves: A simple and seasonal task suitable for kids of various ages.
• Weeding gardens: Teaches attention to detail and patience.
• Planting flowers or vegetables: Encourages creativity and care while helping neighbors beautify their yards.
• Watering plants: A lighter task that younger children can manage effectively

These tasks not only give kids an opportunity to earn money but also help them develop valuable life skills:

• Negotiating fair prices and setting aside a percentage of their earnings for savings.
• Encouraging responsibility and time management.
• Balancing their workload and savings goals.

Here are a few options for where children can find yard work jobs:

• Neighbors: suggest that children contact their neighbors or family friends to see if they have any gardening chores such as raking leaves, mowing the lawn, or pulling weeds.
• Local community boards: visit community centers, libraries, and coffee shops looking for job postings about yard work on the bulletin boards.
• Social media: offers for yard work can be posted by parents on behalf of their children in local Facebook groups.

Completing tasks within the household teaches children the value of work and money. Their children’s pay can range between 20 and 50 for each activity, depending on the size of the yard and the completion time. In addition, as they start earning money from their work, they can also practice saving a part of their earnings which will help them develop improved spending habits.

Sell old toys and books

There is profit to be made and knowledge to be gained from decluttering and selling. For children aged seven and above, selling unused toys and books is a great activity. This is especially good for children who have outgrown certain products and are willing to let them go.

These activities not only provide children a chance to earn some money but also help them hone important skills:

• Value of possessions: Kids tend to understand the value of money and the effort that goes behind earning it.
• Simple transactions: Managing sales, giving change, or communicating with buyers helps improve basic math and interpersonal skills.
• Decision-making: Deciding which items to sell encourages kids to evaluate their needs and wants critically.

Some places where the child can sell their old books and toys:

• Garage Sale: provide a direct and personal interaction with buyers, allowing kids to gain immediate feedback and quick cash for their items
• Facebook Market: offer a broader reach, enabling children to sell to a wider audience and explore the basics of online commerce with the help and supervision from parents. 

Depending on the selected items, children can make $20 to $60 in a single sale. Children notice the advantages of being resourceful by turning unused items into cash. To help develop their savings habit for future family trips or new toys, parents can encourage their children to save a portion of their earnings. This effort demonstrates responsibility and teaches children the worth of their belongings, how to conduct the sale transaction, and how best to save money.

Pet sitting or dog walking

Pet sitting or dog walking

This is quite an ideal job for children aged 10 and above who love animals. Some requirements for this job are that the kids need to be patient and know how to take care of pets, be careful, responsible, and able to follow instructions, be active, and enjoy outdoor activities (especially with dog walking tasks). 

Some activities that children can engage in when participating in this job:

Pet Sitting

• Feed and water the pets according to the owner’s instructions.
• Play with the pets to ensure they don’t feel lonely.
• Clean the pet’s living area and litter box.

Dog Walking

• Walk the dog along the agreed route and at the agreed time.
• Control the dog’s behavior when going out (avoid running around, chewing on things, or approaching other dogs if necessary).
• Take care of the dog if it encounters problems while walking (e.g., injury, exhaustion).

These tasks not only give kids an opportunity to earn money but also help them develop valuable life skills:

• Responsibility: The children will learn to take responsibility for the tasks they undertake.
• Problem-solving skills: Handling unexpected situations (such as a pet getting sick, a minor accident, etc.).
• Communication skills: Learning how to interact with adults and negotiate tasks.
• Financial management skills: From the money earned, children can learn how to save or spend.
• Patience: Jobs involving animals require gentleness and no haste.

Some ways that help children find jobs related to pet sitting and dog walking:

• Neighbors and nearby households who don’t have time are looking for someone to take care of their pets.
• Groups on Facebook, Nextdoor.

Pet sitting or dog walking jobs help children understand the value of labor and money through earning their own income. Income ranges from $10 to $20 per walk. This money can be saved by the children to serve personal goals such as buying toys, books, or saving for larger plans in the future. 

Start a Youtube channel

Kid-friendly content ideas

Kids can start learning how to use the internet responsibly by creating their own channels on YouTube and uploading content that they’re interested in.

Children can create content around topics they’re passionate about, such as:

• Unboxing videos: Children can unbox new toys that impress them and explain in details how it works.
• Crafting videos: Children who are interested in arts and crafts can record and post short videos on how to create amazing arts and crafts projects.
• Gaming videos: Children who are into video games can create gaming videos where they give tips and tricks on how to play the game.
• Fun science videos: Kids get to demonstrate simple science experiments that they do at home and explain it in an entertaining way using visuals.

Students will need to acquire these skills before they are able to participate in this highly creative work.

• Communication: Being able to explain ideas clearly is essential for creating engaging content.
• Basic video editing: Editing videos to make them more engaging and professional is a useful skill, which parents can help them with.
• Creativity: Thinking of new ideas and planning content that will entertain and educate their audience.

These tasks not only give kids an opportunity to earn money but also help them develop valuable life skills:

• Creativity and Self-Expression

• • Kids can explore their passions and showcase their unique talents, from toy reviews to science experiments.
  • Encourages innovation through brainstorming and content creation.

• Skill Development

• • Improves communication skills through on-camera presentations.
  • Teaches video editing, scriptwriting, and basic production skills.
  • Enhances time management by balancing filming, editing, and publishing schedules.

Monetization basics

Once their channel gains popularity, kids can start monetizing through ads, sponsorships, or merchandise sales. Parents should guide their children in understanding YouTube’s policies and ensure all content is child-friendly.

Managing earnings responsibly

Through this process, kids will also learn to manage their earnings. It’s important to teach them how to track income and save a portion for long-term goals like education or future hobbies. This helps children develop financial responsibility, learning the best way to save money for kids while fostering good money habits.

Starting a YouTube channel not only enhances kids’ creativity but also teaches them important life skills such as financial management, teamwork, and technical abilities. This is the best way to save money for kids.

Don’t miss these expert articles:

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• 18 Ways To Earn Income Without A Job

Create and sell digital art

Children who are familiar with technology and know something about digital art can do this job. Here are some requirements for the job:

• Imaginative and creative: Children interested in drawing, painting, or graphic designing can pursue digital art work with ease.
• Tech-savvy: Elaboration on devices and digital tools can be helpful while doing art work. Children who have confidence in using a tablet, computer, or a smartphone will enjoy this work more.
• Patient and persistent: This work requires attention and practice in order to master the skill. Kids who are patient and willing to dedicate time will be best suited for this project.

These jobs not only allow kids to earn extra income, but also acquire important life skills:

• Enhances creativity: Children will learn to communicate their ideas by art, try out different styles, and work out a variety of themes.
• Improves technological skills: The use of digital tools improves children’s confidence and literacy with technology and software.
• Entrepreneurial skills: Children will develop an entrepreneurial perspective while running a digital art business; they will learn how to price their work and sell it to clients.

Using tools such as Procreate or Canva, children can produce and sell their art online. They can design posters, stickers, and greeting cards that are printable. Supply and shipping are taken care of by Redbubble and Society6, so kids can spend more time being creative. Alongside being enjoyable, this is one of the most effective ways for children to economically harness their creativity and learn new skills.

Participate in online surveys or reviews

Participating in online surveys is quite an easy task; children aged 14 and older who are capable of providing personal opinions can fully participate in this activity. This job does not require any skills; the kids just need to give their honest personal opinions based on the questions asked in the surveys. 

These tasks not only give kids an opportunity to earn money but also help them develop valuable life skills:

• Teaches Responsibility: kids learn to meet deadlines and fulfill commitments when participating in surveys or reviews.
• Encourages Financial Awareness: introduces concepts like saving, budgeting, and setting financial goals.

Some platforms can help children easily find jobs related to conducting online surveys:

• Swagbucks: participate in surveys, watch videos, or complete small tasks to earn reward points (SB), which can be exchanged for cash or gift cards.
• Survey Junkie: specializes in online surveys, providing questions from large businesses to gather user opinions.

Children can participate in 5-10 surveys per week, earning between $20 and $50 per week. This is yet another example of the best way to save money for kids by utilizing simple online opportunities.

Best way to save money for kids

Best way to save money for kids

Opening a savings account

One of the ways you can familiarize your child with banking operations is by opening a savings account for them. While doing this, scout for accounts that have zero fees or ones that have competitive interest rates. In addition, many banks have youth savings accounts that come equipped with tools meant to encourage young children to save.

Teaching kids about interest

Discuss the idea of interest and how it can work to their advantage. For example, if the kid has saved up $100 in a bank that provides 2% interest rate on yearly basis, they will receive $2 at the end of the year. These types of examples will help put the student’s mind around the concept and aid in understanding the best way to save money for kids.

Setting savings goals

Assist your child in setting up feasible savings goals; examples can include saving up for a new toy or for a family vacation. Ensure to track these goals together and break the goal into smaller milestones so that you can motivate the child and measure their advancements. This helps to illustrate the best way to save money for kids with organized planning and goal setting.

FAQs

FAQs