Smart Savings for Big Purchases – Good Money Habits for Kids and Teens

CASH KID

We’re all guilty of it!

What am I talking about?

Stay tuned!

Intro:

So, you got some cash, maybe from an allowance? Or, that money your grandma gave you for your seventh birthday.

Here ya go, sweetie! Woo hoo! Thanks, Grandma! Whatever it is, what are you gonna do with it? Spend it? Hide it away? Or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a Cash Kid.

Welcome back to the Cash Kid Podcast! I'm your host, the Cash Kid, and today we're diving into a topic that's super important for kids and teens - saving for big purchases.

Let’s be honest.

We’ve all been guilty of asking our parents for something we want. My six-year-old brother has figured out how to search up toys on Amazon to show my parents to try and convince them to buy him things.

My parents then showed him how to add things to a wish list, and that he has to wait until a birthday or has the money to buy it.

But, if we don’t want to wait until a birthday or Christmas for the chance we get what we want, how do we learn to save for things we kids and teens want to buy?

Whether you're aiming to buy a new gadget, that first car, a new lego set, Lululemon outfit, purse, or even start your own small business, learning how to manage your money wisely is key.

So let's get started!

First, let's talk about budgeting. Budgeting may sound boring, but it's the foundation of good money habits. A budget helps you keep track of your income and expenses so you can make sure you're saving enough to reach your goal.

**[Sound Effect: Cash Register Ding]**

Now, let’s say you get $20 a week from your allowance or a part-time job. If you spend all of it on snacks and video games, there won't be anything left for that big purchase you want. Instead, try the 50/30/20 rule.

Save 50% of your income, use 30% for needs like school supplies, and spend 20% on fun stuff.

Next, let's talk about earning money.

Saving is great, but if you want to reach your goal faster, finding ways to earn extra cash is a smart move.

Here are some ideas:

First, for teens, why not think about getting a part-time job. Many teens work part-time jobs after school or on weekends. It could be at a local store, a fast-food restaurant, or even babysitting. I saw several teens working at a local farmer’s market the other day. I thought that’s a great job for the summer for teens to make money and save for big purchases.

Second, what about tutoring? If you're good at a particular subject, consider tutoring younger students. It's a great way to earn money and help others at the same time. There are always parents on Facebook groups looking for tutors to help their kids with a subject they are struggling in, so lots of clients… and money.

And then of course for younger kids there’s the good ole lemonade stand and doing household chores. Be mature and ask to talk with your parents to set-up a chore list for you and how you can earn some money around the house or do things for neighbors. You’d be surprised how many are willing to pay kids to do small jobs here and there.

We’re actually working on season 3 of the Cash Kid Podcast already where we’re going to be interviewing lots of tweens and teens about ways they are using their skills to make money. We can’t wait to start releasing those episodes later this year!

**[Sound Effect: Coins Clinking]**

**Host:**

Now, let's move on to selling old items. Most of us have toys, clothes, or gadgets that we no longer use. Why not turn those items into cash? We have lots of large lego sets in our house that we’ve put together. My Mom gave us the idea recently to take those apart and resell them used to others. We looked it up, and it’s actually a thing.

Also maybe organize a garage sale, or sell old items online through platforms like eBay, Depop, or Facebook Marketplace. Not only will you declutter your space, but you'll also add to your savings goal for that big purchase.

Another important habit is setting clear savings goals. It's easier to save when you know exactly what you're saving for. Break down your goal into smaller, manageable milestones. For example, if you want to save $200 for a new bike, aim to save $50 each month for four months. This makes the goal less overwhelming and gives you a sense of achievement as you reach each milestone.

I use an app called Greenlight to help with my savings goals. I can always see how much I have in my savings account. When I get paid for a job or chores, I use the 50/30/20 rule we talked about earlier and know before the money even enters my account where it’s going.

Seeing your progress can be incredibly motivating and helps you stay on track.

**[Sound Effect: Checkmark]**

**Host:**

Let's not forget about the importance of needs versus wants.

We actually produced an episode on needs versus wants. It’s titled “Needs, Loves, Likes, Wants.”

Be sure to check it out. It’s one of our most popular episodes on the Cash Kid Podcast.

It's easy to get tempted by things you want to buy immediately, but it's important to prioritize your needs and long-term goals. Ask yourself, "Do I really need this, or can I save this money instead?" Delaying gratification is a powerful skill that will benefit you throughout your life.

**[Sound Effect: Thought Bubble Pop]**

Finally, let's talk about the power of compound interest. If you save and invest your money wisely, it can grow over time. Consider putting some of your savings in a high-yield savings account or investing in a beginner-friendly platform. Even small amounts can grow significantly over time.

So, let’s recap, here are the key points to help you save for big purchases:

1. Budget - Use the 50/30/20 rule to manage your income.

2. Earn Money - Find part-time jobs or ask talk with your parents about a chore list to earn money.

3. Sell Old Items- Clear out those old unused items into cash.

4. Set Goals - Break down your savings goal into smaller milestones.

5. Track Your Progress – Use an online app like Greenlight or keep a book to record your earnings and expenses.

6. Consider Needs vs. Wants - Prioritize long-term goals over immediate desires.

7. Compound Interest – Consider putting your money in a savings account that can grow for free and grow your money over time.

That's all for today's episode of the Cash Kid Podcast. I hope you found these tips helpful and are inspired to start saving for your big purchase. Remember, good money habits start early, and the skills you learn now will benefit you for a lifetime.

Don't forget to subscribe to the Cash Kid Podcast on whatever platform you are listing from. Leave us a review and follow us on Instagram, Facebook, and YouTube.

Remember anyone can be a Cash Kid, you just have to learn how to become one.

Cash Kid, out!

Disclaimer: The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids. Definitely your parents first before investing.