How to Save Money for Kids

Teaching kids to save money can be a feat. Once you throw in the thought of trying to save for your retirement while saving for their future needs in college, you may begin to wonder where you will find the money for all of it. Well, you can now take a deep breath and relax, because it's a lot easier than you think.

Things You'll Need

• Money that the Kids Have Saved
• A Container, Such as an Empty Coffee Can
• Eventually, a Child's Bank Account or 529 Plan

Instructions

1. Whenever you child decides to cash in the money they have saved on a toy, have them give you the money instead. In return, pay for the item by using your check card, credit card, or cash.

2. Tell the child, if they ask that once the money is handed to you for the purchase of the item they will not get the money back.

3. Take an empty container, such as an empty coffee can, and begin placing all of the money from the child's purchase into the container. Do not tell your child about the container.

4. Once you have collected enough money from various transactions from your children, take the money to the bank and open them a savings account or a 529 college savings account (if available in your state).

Tips & Warnings

• Try to keep tabs on how much your child is looking to spend beforehand, so you can make sure you will have enough to cover the item.

• If your child wants to save their money, then think about opening a savings account for them instead. Then educate them on the pros and cons of opening a 529 college savings account.