For many, saving money is an important part of adulthood and learning how to save is a great life skill. It helps us budget for those special moments and prepare for life's surprises. Teaching your child the value of saving early on can be a valuable life lesson - in fact, the Money Advice Service suggests that most children can understand planning and budgeting by age seven.
How much should your child save every week or month?
There’s no one-size-fits-all rule about saving. Just like with adults, your child will have different needs, and every child finds a different method of saving easier or more fun.
Here are some suggestions to get you and your child started:
- Lots of people save money regularly. If you give your child pocket money regularly for tasks such as housework, you can encourage them to save a small bit of this every time. This is just one of the benefits of giving your child regular pocket money.
- Some people suggest saving 10% of your income throughout life. This can be a nice, simple percentage to help get your child saving, but everyone’s situation is different. Find a number that works for you.
- You could discuss savings if your child gets money for any special events like their birthday. Ask them what your child wants to do with it, and suggest ways of saving the money.
What to consider when deciding about how much to save
When looking at how much to save, you know your child’s situation best. You and your child can discuss what they want to save for, and if they want to have a certain amount of savings by a certain time.
Around 26% of teenagers want to start their own businesses, so teaching them about saving can be a helpful way to get them started. They could either save money for a big dream, or ask your child what special treat they might want to save up for. Depending on their age, your child's goals or wishes might differ.
How to encourage your child to save
Saving money can seem like a chore – after all, it can be very tempting to spend money rather than put it away for a rainy day. That’s why encouraging your child to save can be very helpful for their future. Teaching them the importance of saving can help build great money habits that will last for a lifetime. Teaching your children good money habits at a young age is important, in fact, our research indicates that 79% of people who didn’t get financial education as children had fallen behind on utility bills at some point in their lifetime.
When talking to your child about saving, consider telling them why you save money, or all the positives of saving. You could teach them about interest, saving for a rainy day, or the joys of putting money aside for a big treat.
To help you along the way, you and your child can set savings goals with GoHenry. These goals can help your child or teen see the progress they are making when trying to save up money. GoHenry kids also get access to in-app Money Missions with lots of entertaining videos and quizzes to help teach how and why to save.
Related: How to teach your child about saving money
How can GoHenry help with saving
GoHenry can help teach your child about finances and savings. Our in-app Money Missions covers money basics, investing, saving, compound interest, borrowing, giving, and more.
GoHenry can also help your child set and manage savings goals – this keeps them in the know about what they’re saving for and how much they've saved already. The GoHenry app can show how close they are to the new game they want or how much they’ve saved for the future.
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