Saving as a Family

adminKids & Money, Money Management, Saving

By: America Saves

In most circumstances, we build our financial foundation from experiences that we go through as children and youth. Sometimes when children hear their parents or other adults in their lives talking about cutting spending or saving money, they assume that the family is going through a rough patch. As appropriate based on children’s ages, family conversations about money goals, including saving and spending plans, reassure children. It is also a great way to introduce (or remind) children about the reasons we save.

Talking about family saving goals helps children understand that putting money aside for the future – whether to be prepared for unexpected expenses, for short-term goals such as summer vacation, or for longer-term goals such as paying for college – is important to you. They will also likely be interested in knowing how they can help. They may even want to set their own savings goals and be motivated to work toward achieving them!

Make Saving a Family Affair

Get your family involved with your saving plan by brainstorming ways to cut expenses in order to free up money to put toward your saving goals. Explore low- and no-cost activities you can do together as a family. Consider selling rarely used books, toys, clothes, and other items in a garage sale or other marketplace.

Here are four easy ways to make saving a priority for everyone under your roof:

1. Have a conversation

Get the whole family together, make some popcorn or hot chocolate and make talking about money fun. Keep it positive by talking about ways the family can work together to lower expenses, increase income and save money.

2. Involve everyone

Take time to explain how things that everyone in your household uses comes with a cost, like the utilities, internet, and cable. Make it an activity for everyone to review your local grocery store circular/app and identify products that you can save on that week.

3. Set a goal

Decide as a family what your financial goals should be. These could be household goals and individual goals. Is it saving for college? Is it saving for a family vacation? A car? Having a financial cushion for unexpected emergencies? Whatever you decide, make a commitment to save. Jumpstart that commitment by taking the America Saves Pledge, and we’ll help keep you on track by sending goal-based emails and texts.

4. Make a plan

Setting a goal is a great start, but how will you reach it without a plan? Making a plan to reach a savings goal requires establishing a plan for how you will spend and save your money. Savers with a plan are twice as likely to accomplish their savings goals. Get some tips and tricks about making a plan with our Save with a Plan Toolkit.

Encouraging Children to Save

Everyone in your household can play a role in the financial success of your home. A lesson all kids can learn early: the pride that comes with saving for something they want! Encouraging your child to sell toys they no longer play with, or even having a bake sale or lemonade stand puts them on the path to smart money habits. Involve children by:

  1. Encouraging them to be aware of their energy and water use by turning off lights and electronics when not needed and by turning off the water when brushing teeth and taking showers.
  2. Thinking about things that the family regularly spends money on and talking about if the family stills want or need the items or if they can select cheaper alternatives or perhaps do without them.
  3. Teaching them to comparison shop and choose generics or use coupons when it makes sense.
  4. Challenging them to suggest ways to enjoy time together as a family for less. Not sure where to start? Check out these suggestions!
  5. Including children in trips to your financial institution (or an ATM) to deposit or transfer money into a saving account make the process real. Consider posting a running total of the dollar amount of deposits and the progress made toward a family saving goal on the refrigerator or bulletin board.

Saving money is a habit that is developed over time. In addition to letting children know that you save, help them begin to develop their own saving habit. Money as You Grow, a framework that links money-related activities to children’s developmental stages, is a great resource for conversation starters and activities for children of all ages at consumerfinance.gov.

America Saves can help you save money so you can feel confident about your finances. It all starts when you make a commitment to yourself to save. Take the first step today and take the America Saves pledge to save money, reduce debt, and build wealth over time. And it doesn’t stop there. America Saves will keep you motivated with information, advice, tips, and reminders to help you reach your goal. Think of them as your own personal support system.