Saving Money: Tips and Tricks for Kids

Introduction

As a kid, you might be receiving an allowance or getting money as gifts for special occasions. While it can be tempting to spend your money on the latest toys or treats, it’s also important to learn how to save your money for the things that really matter to you. In this blog post, we will explore the world of savings and learn some tips and tricks to help you save more!

We know that needs should take precedence over wants, i.e., we shall first spend our money to satisfy our needs before spending it on our desires.

For example, we all need food, so we shall buy food first and consider buying chocolates with the money left after buying food.

We must also consider if we shall spend all our money or save some part of it.

Savings refer to the surplus money left for an individual after all expenses are met.

In simpler words, saving is the money set aside for future use and not spent immediately.

Suppose you get a pocket money of Rs 500 per month. You buy yourself snacks for Rs 50 and your favorite set of colors for Rs 200. Friendship day is coming up so you buy you’re a friendship band for your bestfriend worth Rs100. How much money are you left with? Rs 150. All your needs are satisfied, so now you put this Rs 150 in a piggy bank. The money in the piggy bank are your savings.

Now let’s suppose that your mother’s birthday is coming up in 6 months and you want to surprise her with a watch which costs Rs 750. If you save Rs 150 from your pocket money every month for 5 months, you will have more than enough money to buy her a watch and still be left with Rs 150. That is the power of savings!

So, saving is the process of setting aside a portion of current income for future use, and ‘Savings’ are the funds you have saved.

Here are some tips and tricks to help you save money:

Set Savings Goals: The first step to saving money is to figure out what you’re saving for. It could be a new toy, a video game, or even a college education. Once you know what you’re saving for, you can set a savings goal and work towards it. Make sure your goal is realistic and achievable within a reasonable amount of time.

Create a Budget: A budget is a plan for how you will spend your money. You can create a simple budget by writing down your income (allowance, gifts, etc.) and your expenses (toys, treats, etc.). Then, figure out how much money you can set aside for savings each week or month.

Find Creative Ways to Save Money: There are many ways to save money without sacrificing the things you enjoy. For example, you can buy generic brands instead of name brands, or you can bring your own snacks and drinks instead of buying them from vending machines. You can also save money by finding free or low-cost activities to do with your friends, like playing at the park or having a movie night at home.

Keep Track of Your Spending: It’s important to keep track of how much money you’re spending and where it’s going. You can use a notebook, a spreadsheet, or a money-tracking app to help you keep track of your spending. This will help you identify areas where you can cut back on spending and save more money.

Make Saving Fun: Saving money doesn’t have to be boring! You can make it fun by setting up a savings jar or piggy bank and watching your savings grow over time. You can also make a game out of finding ways to save money and competing with your friends to see who can save the most.

Saving money is an important skill that will help you achieve your goals and be financially responsible. By setting savings goals, creating a budget, finding creative ways to save money, keeping track of your spending, and making saving fun, you can become a master of saving money in no time.