How Can Kids Save Money?

When you're a kid, it's hard to save money as you make it. Sure, adults have responsibilities, bills to pay, and children to feed. But kids have less experience with money and that makes them 10 times more likely to waste it. There's also more temptation to buy things since kids usually don't own as many things as their parents and don't normally get to experience the feeling of buying things. But if you're serious about saving your money up and you're a teen or a kid, then there is definitely a few things you can do that will help you save your christmas money or hard-earned dollars.

Open a Savings Account
After you make some money, you should think about putting it into a savings account so you're less likely to spend it quickly. Most teenagers or kids can have their own bank account, but a parent or guardian will usually have to go with them to set it up if they are under 18. It's pretty easy to set up a savings account, and all you would really need to do is to go down to the local bank with one of your parents or guardians, and sign your signature a few times where they tell you to sign. People who start savings accounts at a young age and who can keep money in there and keep contributing more to their account over time, can usually retire earlier than many people who start saving later in life. Not only does the money grow as you keep adding more, but you earn interest on your savings as well. There are some accounts available where the account is in your name, but you can't put money into the account or take it out without your parent or a guardian present. This is probably the best type of account for you, so you won't be tempted to take money out at any time. If they give you an option for having a debit card for your account, you should decline and say no, that way it takes a little more effort to get the money out of the account when you get weak and decide to spend some.

Avoid Temptation
This is obviously the hardest thing for kids to do when it comes to saving money. It's pretty common for a teen to put some money away for a rainy day, in a piggy bank or in their sock drawer, and then they end up spending it anyways the first time a new videogame or cell phone hits the store shelves. Whether you put your money in a bank account, or hide it under your mattress, you're still going to have to mentally train yourself to be strong and not spend it on every little thing. As stated before, if you put it in an account, you should make it somewhat difficult to get into the account on your own, so you're less likely to run off and go on a spending spree. But if you hide the money in your room or somewhere nearby, you should keep a picture or a note with it to remind you of your goals to save. For example, you should write out a note to yourself that reminds you of how unimportant a video game is in the big scheme of things. Sure, video games are fun, but after a few weeks of playing them and beating them, most kids are bored, and there's $20-$60 you just wasted for a cheap temporary thrill. You should tell yourself something like that in the note. If you have specific reasons for saving your money, like you're saving up to buy a car or something really expensive, then you should take a picture of one or print it out from your computer, and keep that picture with your money. That way, everytime you reach under your mattress or in a sock drawer to spend some of the money, you see that picture glaring back at you, reminding you of how important your goal to save money is.

Buy Something of Value
A great way to save money, which can be a little risky, is to buy something that is worth a certain value. For example, gold is always worth something, because gold prices have continued to increase for the past 100 years. So you could go on Ebay or to a jewelry or gold shop, and buy gold coins or gold bars (assuming you have enough saved up to afford them). Then when you want to spend a little money here and there, it won't be as easy, since you would have to sell the gold before you'd see your cash again. The only problem is, sometimes gold takes dips here and there. Although the price has continued to increase over the years, there's a few years here and there where it has dropped. So if you were to buy some, and it took a drop all of a sudden, you may have to wait 2 to 10 years before the value would be the same as when you purchased it. But one good thing about buying things of value, is that you can often make a nice profit when you go to sell them. Gold isn't the only thing of value you can buy, but be careful. Sometimes things that are valued now, may not be of much value a few years from now. Lots of kids learned that the hard way when they invested in lots of Pokemon and Marvel cards. They were really hot for about 5 or 6 years, then all of a sudden they weren't worth much at all.





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