Smart Savings for Big Purchases – Good Money Habits for Kids and Teens

We’re all guilty of it!

What am I talking about?

Stay tuned!

Intro:

So, you got some cash, maybe from an allowance? Or, that money your grandma gave you for your seventh birthday.

 

Here ya go, sweetie! Woo hoo! Thanks, Grandma! Whatever it is, what are you gonna do with it? Spend it? Hide it away? Or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a Cash Kid. 

 

 

Welcome back to the Cash Kid Podcast! I'm your host, the Cash Kid, and today we're diving into a topic that's super important for kids and teens - saving for big purchases.

 

Let’s be honest.

 

We’ve all been guilty of asking our parents for something we want. My six-year-old brother has figured out how to search up toys on Amazon to show my parents to try and convince them to buy him things.

 

My parents then showed him how to add things to a wish list, and that he has to wait until a birthday or has the money to buy it.

 

But, if we don’t want to wait until a birthday or Christmas for the chance we get what we want, how do we learn to save for things we kids and teens want to buy?

 

Whether you're aiming to buy a new gadget, that first car, a new lego set, Lululemon outfit, purse, or even start your own small business, learning how to manage your money wisely is key.

 

So let's get started!

 

First, let's talk about budgeting. Budgeting may sound boring, but it's the foundation of good money habits. A budget helps you keep track of your income and expenses so you can make sure you're saving enough to reach your goal.

 

**[Sound Effect: Cash Register Ding]**

 

Now, let’s say you get $20 a week from your allowance or a part-time job. If you spend all of it on snacks and video games, there won't be anything left for that big purchase you want. Instead, try the 50/30/20 rule.

Save 50% of your income, use 30% for needs like school supplies, and spend 20% on fun stuff.

 

Next, let's talk about earning money.

Saving is great, but if you want to reach your goal faster, finding ways to earn extra cash is a smart move.

 

Here are some ideas:

 

First, for teens, why not think about getting a part-time job. Many teens work part-time jobs after school or on weekends. It could be at a local store, a fast-food restaurant, or even babysitting. I saw several teens working at a local farmer’s market the other day. I thought that’s a great job for the summer for teens to make money and save for big purchases.

 

Second, what about tutoring? If you're good at a particular subject, consider tutoring younger students. It's a great way to earn money and help others at the same time. There are always parents on Facebook groups looking for tutors to help their kids with a subject they are struggling in, so lots of clients… and money.

 

And then of course for younger kids there’s the good ole lemonade stand and doing household chores. Be mature and ask to talk with your parents to set-up a chore list for you and how you can earn some money around the house or do things for neighbors. You’d be surprised how many are willing to pay kids to do small jobs here and there.

 

We’re actually working on season 3 of the Cash Kid Podcast already where we’re going to be interviewing lots of tweens and teens about ways they are using their skills to make money. We can’t wait to start releasing those episodes later this year!