Did you know, according to a report by the University of Cambridge, kids’ money habits are learned from as young as 7 years old? The earlier you start, the better it is for your kids to appreciate the value of money!
Especially with the rising cost of goods and inflation, it's now more important than ever for your kids to be financially literate.
But with kids, you’ll need to be extra creative especially when it comes to educating your little ones on how to save and spend money wisely. Not to fret, here are 3 fun money-saving challenges for your kids to try!
1. The ‘Save, Spend, Share’ Money Jar Challenge
Recommended age: 3 - 12 years old.
The money jar is a classic savings method that’s super easy to do, and perfect for young kids because they can visually see the consequences of their actions. With this method, kids will get to watch their money grow but also learn to divide their allowances wisely too.
All you need is 3 large jars, then label each jar with ‘Save’, ‘Spend’ and ‘Share’ respectively.
The Savings Jar: Used as a piggy-bank for your kids’ long term savings goal.
The Spending Jar: For your kids to treat themselves to things, such as candies.
The Sharing Jar: To donate to your kids’ choice of charity or to help a friend/community cause.
First, explain to your kids what each jar represents then challenge them to allocate their allowances, ang pows, or any monetary gifts they may receive into each respective jars.
Once the savings jar is full, it’s time to open a junior savings account for your kids. That way, your kids’ savings will be maximized with interests, incentives and more!
2. The Grocery Budget Challenge
Recommended age: 7 years old and above.
In order for you to teach your kids to save money, you’ll also have to help your kids to learn how to make wise financial decisions. With the Grocery Budget Challenge, you can encourage your kids to be responsible with the monthly or weekly grocery shopping budget.
First, get your kids to list out the grocery items, set the budget together, then pass the cash to them. Your kids will have firsthand experience in making choices and understanding the value of money.
Be sure to take the time to explain about deals, brands value, and tips on maximizing their savings on their groceries.
Example: Should they purchase from a well-known orange juice brand that sells orange juice for RM7 or a lesser-known brand that sells orange juice for only RM3?
After each grocery shopping trip, compare the budget allocated vs. actual spending and evaluate if they went over or under budget. You can also encourage your kids to deposit the amount saved into their piggy bank or savings account!
3. The 52-Week Money Challenge
Recommended age: 15 - 18 years old.
This is a popular money-saving method among adults that you and your kids can do together! The 52-Week Money Challenge teaches your kids to start saving in small amounts each week, then build it up accordingly in the following (52) weeks. Hence, helping them to develop good long-term money-saving habits.
Kickstart the challenge by saving RM1 in Week 1, RM2 in Week 2, RM3 in Week 3, and so on until Week 52 – to accumulate a total of RM1,378 in savings! It’s a really great way to teach your kids how to budget their allowances and expenses to save the targeted amount for that week.
While this challenge is best done at the start of the year, you can still do it any time as long as you hit 52 weeks!
WHERE TO SAVE YOUR KIDS MONEY? Check out the best Junior Savings Account now.