Winner's Circle

September 2009

How Do You Teach Your Kids Smart Savings Strategies?

The Winning Entry

	"We have an eraser board on our refrigerator with our budget amount for spending on food and entertainment every month. Sundays are coupon clipping days. When we go shopping my daughter holds the list and writes down the cost next to the item of everything we buy. She has become a good shopper looking for better prices and comparing pricing with bigger sizes versus smaller sized items. When we get home and check out our savings with the coupons against our total on the shopping list, if there is any extra money in the food budget that we did not spend, we rent a movie that night as a reward for a job well done. " Cindy G., San Diego, CA

Other Favorites

Notable Mention

"To cut down our high electric bills, we encouraged our kids to turn off the lights when leaving a room. To enforce the rule, we placed two cups in the kitchen. One cup for the parents, and one for the kids. At the beginning of the week we place $10 in the kids’ cup. When we discover a light on in an empty room, we transfer $0.25 from the kids cup to the parent cup. At the end of the week the remaining dollars were provided to the correct team. Our electric bill started at $315.00. After three months, we only paid $62.00. In another words; this can save us over $3,000 a year!"

Christina D., Chicago, IL

"I am a big advocate of coupons and sales. Now, my kids are doing the same. If something is not on sale, turn it down and wait. The item will soon go on sale and you will be able to have it and enjoy it knowing you got it for much cheaper than the original price. My daughter, Liz, gets so excited when she finds a bargain and can share her skills with me!"

Julie F., Kendall Park, NJ

"I've been teaching my daughter to write down all that she spends. Being almost sixteen, she has to use her allowance for day to day jollies. Writing things down on paper helps her see where it all goes and she can decide what's important. We opened a bank account for her last year and any large amounts of money she gets as a gift goes in there. This summer she began a babysitting job and most of that goes into her account."

Jane G., San Francisco, CA

"I have given my teenage daughter a checking account with a debit card. Twice a month, I transfer a set amount into her account. She has to budget all her spending with that amount. She pays for her own clothes, coffee, movies, dance tickets, etc. She not only has to make sure she has enough for the month but she has to save for special occasions like the prom and Christmas gifts. It is teaching her not only to budget her money, but how to keep and balance a checkbook along with other banking skills. "

Donna D., Spreckels, CA

"First of all I like to let my kids sit down and do my bills with me. That way they see exactly what I make and where all the money goes. For instance if they want something at the store my son will say "Maybe I can get it next month if our electricity bill is not too high" and then he will go around and make sure all the electricity is off to help lower the bill. It has been very helpful. Second of all, the children have their own bank accounts and we even registered online so they could check their balances and watch the money grow as I make small deposits here and there. These two simple things have not only inspired my children to save, but it puts in their minds strategies to save even smarter. In addition, we have money meetings and play games involving money as much as possible so they learn the value and significance of money in our lives. I have had great success with my children with regards to savings."

Jennifer E., Holly Springs, GA

"I think by giving the kids an allowance they learn where money comes from and they realize it can be gone really fast. It’s so easy for them to ask for anything and everything when someone else (ME) is buying it for them. But when they have to spend THEIR money, they really rethink their wants and needs and it helps them to learn the difference between the two. Of course, I still buy them what they need and occasional, what they want, but having an allowance really helps to prepare them for adult life. Also when I do my monthly bills, I have them sit down and help me so they can see that money is not an unlimited thing that just flies out of ATM machines."

Melissa F., Donora, PA

"The way to encourage smart savings strategies are to let kids handle a little bit of money themselves early on. A piggy bank and a savings account allow a child to learn about savings. When the child receives money as a gift or allowance, part of the money should go in the bank to save for something special. It is okay if a little bit goes for immediate treats. When there is enough saved for the ‘special something’, the child learns that buying some that costs more can be effortless."

Darcie C., Nevada, MO

"We have a three envelope system. One envelope is for giving, one is for saving, and one is for our needs. Once a month, we separated the kids earnings into the three envelopes. The kids enjoy giving, saving, and paying for their own needs. It’s fun and it really works!"

Maria P., Justice, IL

"It is very important that children learn the value of a dollar. The strategy that I used with my children was the concept of when it is important, you are willing to wait. That idea made them think, "Is that something I want or something I need?" When my children went to college, they would save for a specific item and if they really wanted it, they would save until they could pay for it with cash. This strategy helped my oldest daughter and her husband save for their new home. And it helped my youngest daughter save for law school. They both know if it is important, you are willing to wait. If not, you will spend the money and regret it later."

Felicia F., Madison, MS

"The same way I learned. When you find something you really want, you find out how much it will cost and then save up to buy it. As a teenage, I bought my first car with cash from the money I saved working two jobs one summer. I received little help from my parents through the whole process and it was extremely rewarding to have done it that way. Kids feel more pride having those special things they want when they had to work hard to get them. You definitely appreciate your things even more."

Kira M., Greenbrier, AR

"Unlike some parents, we don't give our kids allowance. It’s not so much a lesson that you appreciate things you've earned, but more because parents just can't afford it now. Our children do little jobs around the house. For every accomplishment they get a certain amount of money. We also have a change jar which we all contribute to. When the kids save up enough money or there's enough change in the jar, we'll do something small but special like taking a trip as a family to get ice cream. Not only do we feel we are teaching our children to save for what they need or want but also that working together makes your family stronger. They have learned when they ask for something in the store and we say ‘no’, that it is really just because we don't have the money. They see that we try to give them what we're capable of and that we currently only get what we need to survive with a few extras. I hope that these memories of things we do together and lessons in life follows them."

Joy P., Montezuma, OH