How To Save Money As An Aussie Kid: 12 Tips For Kids & Parents

Written By Chris Day

Helping Your Kids Understand The Value of Money

1. Use Piggy Banks/Money Jars To Allocate Money

One of the simplest and most effective ways for kids to start saving is by using piggy banks or money jars. Label three piggy banks/jars: one for spending, one for saving, and one for giving. This simple system helps children understand where their money goes and encourages them to make thoughtful decisions about their finances. 

2. Create a Simple Budget

Creating a budget might sound complicated, but essentially it’s just a plan for your money. Start simple:

  • Track every dollar they receive

  • Divide money into three categories: spending, saving, and sharing

  • Use a notebook or simple spreadsheet to keep track of everything

  • Review the budget together

3. Involve Your Kids When Shopping

When you do the weekly shop, involve your children in the process. Let them handle money and make small purchases. This hands-on experience teaches them about transactions and budgeting. 

Try giving them a small budget to buy ingredients for a family meal, and encourage them to compare prices and find the best deals.

Teaching Your Kids To Save Money

4. Set Savings Goals With Your Kids

Encourage your kids to establish both short-term and long-term savings goals. This could be saving for a new cricket bat or putting money aside for their first car as they approach driving age. By setting clear objectives, children learn patience and the value of delayed gratification.

5. Open a Kids Savings Account

It's crucial to introduce your kids to the concept of banking as they get older. Encourage your child to open their own savings account — this can be an exciting step towards financial independence. 

At Broken Hill Community Credit Union, we offer a range of kid's savings accounts to help children of all ages start their savings journey. Our youth and kids savings accounts help children learn about banking and allow them to watch their savings grow over time, reinforcing the benefits of saving money.

6. Use Apps To Track Their Savings

In today's digital age, it's important for kids to understand how to manage money electronically. Introduce children to mobile apps designed to track their spending and savings. These tools can make managing finances more engaging and accessible, especially for tech-savvy youngsters.

7. Try the 50/30/20 Money Rule (Kid Edition)

Try adapting this adult budgeting strategy for your children:

  • 50% for necessities

  • 30% for wants

  • 20% for savings

This approach teaches balanced financial management and prepares kids for future responsibilities.

Encouraging Your Kids To Spend Money Wisely

8. Plan Meals and Snacks

Encourage meal planning and preparation at home instead of buying pre-packaged foods or eating out. This not only saves money but also teaches valuable cooking skills. This could mean growing vegetables at home or buying in bulk to save on groceries.

9. Limit Impulse Buys

Before the kids splash out on something, remind them of their savings goals. It helps curb those spur-of-the-moment purchases, especially if trips to the shops are few and far between.

10. Get Your Kids Involved With Family Budgeting

Get the kids involved in family budget talks. Whether it's planning for a renovation or saving up for the next family holiday, it gives them a real-world look at managing finances. Talk openly about:

  • The family’s savings goals

  • Money-earning opportunities

  • Financial challenges and successes

Help Your Kids Earn Extra Income

11. Earn Money Through Chores

Encourage the kids to earn their pocket money by helping out around the house (or farm). It teaches them the value of hard work and shows how effort leads to reward.

Country children have unique money-earning possibilities:

  • Farm and property maintenance

  • Helping neighbours with seasonal work

  • Animal care and pet sitting

  • Machinery maintenance assistance

  • Crop-related tasks

  • Selling produce at local markets

These jobs can earn them money and build invaluable skills.

12. Look Into A Term Deposit To Grow Their Money Safely

Consider a fixed-term deposit for longer-term savings, this type of savings account is perfect for specific future goals, like saving for a first car or to move out of home. A fixed-term deposit can help your child save money in a few ways:

  • Secure returns: Term deposits offer a fixed interest rate for a set period, ensuring your child knows exactly how much their savings will grow

  • Higher interest rates: Term deposits typically offer higher interest rates compared to regular savings accounts, allowing your child's money to grow faster

  • Locked-away funds: The money is inaccessible for a set period, preventing impulsive spending and teaching patience

  • Security: Deposits up to $250,000 are covered by the Financial Claims Scheme, ensuring your child's savings are protected

  • Educational value: Term deposits can teach children about long-term saving, compound interest, and financial planning

  • Goal-oriented saving: They're ideal for saving towards specific future expenses like education, a first car, or even a home deposit.

It’s Never Too Soon For Your Kids To Start Saving

By implementing these 12 tips on how to save money as a kid, you can help your children develop strong money-saving habits that will serve them well throughout their lives. 

Remember, the goal is not just to teach kids how to save money, but to help them understand its value and how to use it wisely. The key to successful saving is consistency and patience. 

Encourage your kids to start small, perhaps by opening a savings account. By fostering a positive attitude towards money management from a young age, you're setting your kids up for a financially secure future, no matter where life takes them.

Ready to help your child start saving? Join us today!

FAQ

How can you save money as a child?

You can save money as a child by using jars, a piggy bank, or a kids or youth savings account where you can collect and track your earnings. Set clear goals for what you want to save for, such as a toy or special item, and commit to putting aside a portion of any money you receive from gifts, allowances, or chores. Learn to make smart spending choices by avoiding impulse purchases and looking for deals.

How can a 12 year old save money fast?

Seek out opportunities to earn extra cash like doing extra chores, offering neighbourhood services, and helping your family or neighbours with tasks. Immediately save all gift money, create a specific savings goal, and track expenses to stay motivated and disciplined. Reduce unnecessary spending by finding free entertainment, selling unused items online (with the help of a parent or guardian), and putting money into a kids or youth savings account that offers bonus interest for regular deposits.

How to make $100 as an 11 year old?

You can earn $100 by offering neighbourhood services like: 

  • Dog walking

  • Lawn mowing

  • Pet sitting

  • Helping with yard work or household chores

Selling unused items online or at local markets can also quickly generate cash. Or you could try tutoring younger children and taking on seasonal work like garden maintenance - always with parental supervision and guidance.

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The content in this blog is intended for general informational purposes only and does not take into account your specific financial goals, circumstances, or needs. While we strive to provide accurate and relevant information, it should not be construed as financial, investment, or professional advice.

Before making any financial decisions or taking action based on the information provided, we encourage you to evaluate its relevance to your individual situation. Broken Hill Community Credit Union recommends consulting with a financial professional for advice, you can contact us directly to discuss your unique situation and receive tailored guidance.

Chris Day
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