As you set your goals each year, it’s fun to include your children in the process. Involvement helps them learn to set goals of their own. In the interest of helping them develop strong savings habits, why not have them participate in a 52-week money challenge for kids?
Similar to the well-known 52-week money challenge for adults, the kids’ challenge helps kids to save more money by determining a set amount of cash to put into a savings account, and then increasing that amount each and every week.
How to Personalize Your Child’s 52-Week Money Challenge for Kids
Based on your child’s age and his or her ability to access money, you can pick the weekly money amount that works best for their particular situation.
Even with the smallest weekly contribution, the savings will add up. If your child is younger, you can start with a small amount – for example, a nickel – each week. Here’s how the challenge works:
- $0.05 contribution – WEEK 1
- $0.10 contribution – WEEK 2
- $0.15 contribution – WEEK 3
And so on. If you choose to use a nickel for the challenge, your child simply increases each weekly savings contribution by one nickel. By the end of the 52 weeks, your child will have saved $68.90.
Here is a breakdown of other coin values and potential savings amounts:
- Dime = Save $137.80 by the end of the 52 weeks.
- Quarter = Save $344.50 by the end of the 52 weeks.
- Dollar = Save $1,378 by the end of the 52 weeks.
Why Teaching Kids to Save is Important
We’re living in a time where it’s easy to not save money. Clever marketing and social pressures encourage kids to spend rather than save. Therefore, they start to believe they can have the latest and greatest of everything on the market – without the hard work of earning it.
Saving money is becoming less and less important to people as generations go by. America’s declining savings rate proves it. In May of 1975, the personal savings rate in the United States reached a high of 17%. At the end of 2016, it was 5.4%.
By teaching our children to develop a habit of saving money, we give them a head start on the road to financial responsibility.
Other Ways to Teach Kids to Save
Besides using a 52-week money challenge for kids, there are other ways you can teach your children to make saving money a consistent habit.
- Require your kids to save a percentage of all money they earn or receive as a gift
- Boost your child’s enthusiasm for saving by committing to match what they put into savings dollar for dollar
- Create a savings contest between you and your child (or between your children) to see who can save the biggest percentage of their income for the year
The 52-week money challenge for kids is a great way to encourage children not just to save money, but to challenge themselves to save more than they initially thought was possible. So, give your kids the gift of making savings a habit starting today.
Would you ever do a 52-week money challenge with your child? Have ever done one on your own? Let us know in the comments below!
Image Credit: Nathaniel_U (Creative Commons)