Saving Story for Kids
Most parents want to have financially smart kids, but do not know where to start. Box Elder Credit Union has great savings plans for kids including the Dollar Dog Kids Club and iSave Teen Account. Teaching your kids to save is as easy. This little story is quick and easy to share with your kids to help them understand how to start saving.
Kyle’s friend Ashley was always buying new things with her own money. Today, she’d come to school with a brand-new glittery case for her laptop.
“How’d you pay for that?” Kyle wondered out loud. “You must get a really big allowance each week!”
“Not really,” Ashley said. “My parents give me just $6 each Sunday.
“Six bucks? That’s all?” Kyle’s parents gave him $8 each week. “But that costs a ton of money! How did you pay for it?”
Ashley smiled. “I saved up for it. I put away a little bit of my allowance each week in a special place. I also saved up my birthday cash and the money I earned helping my aunt out during the summer. It all adds up!”
Kyle was interested. His allowance never lasted more than a few days but he really wanted to buy a new Wii game. His mom had told him he’d have to pay for it himself.
Follow by Example
The next Sunday, when Kyle’s mom gave him his allowance, he carefully put all eight dollars in his sock drawer. He’d have that Wii game in no time!
On Monday afternoon, Kyle’s friends decided to make a Slurpee stop on the way home. Kyle followed the group into the 7-11 store and started reaching for an extra-large cup when he stopped. His spending money was at home in his sock drawer. He wasn’t wasting his allowance on Slurpees!
He hung back and watched his friends fill up their cups with icy treats. He was surprised to see Ashley joining the line at the register with her own small Slurpee. Didn’t she know there were more important things to spend money on than a slushy drink?
A Place to Put Savings
That evening, he went with his mother on a trip to Box Elder Credit Union.
“What’s that?” he asked his mom as she slid a small pile of checks across the counter to the member representative.
“This is some extra money I earned this month from a side job,” Mom answered. “I’m going to put them into our Savings Account.”
She held up another check. “And this,” she said. “Is going to go into our Checking Account.”
“But why don’t you put all of the money into savings?” Kyle wondered.
“Because we need money to live on now,” Kyle’s mom explained. “Savings Accounts are for money we will probably need some time in the future, but we need to keep some money for today.”
Kyle nodded. That made sense.
Pizza and Arcade
On Saturday, Kyle and his friends met up at the pizza store for lunch.
After they finished eating, Kyle’s friends started digging out quarters and dollar bills and heading towards the arcade games at the back of the store.
Kyle stayed in his seat, watching them. His mom had given him enough money for pizza, a can of soda, and fries, but none for extras like arcade games.
“Hey, Kyle!” Ashley called from behind him. She jangled a small pile of quarters in her palm. “Want to race me in the car game?”
Kyle looked at her. “I don’t have any money on me. I’m saving it all up for something really big.”
Ashley shrugged. “So am I. But that doesn’t mean I can’t keep anything for now. If you put all your money into savings, it can get really hard and you might give up quickly.”
Spend a Little Save a Little
“So how do you do it?” Kyle asked.
“I put 2 or 3 dollars into my savings jar each week, and the rest I spend on stuff like Slurpees and ice cream.”
“That sounds easy,” Kyle said.
“It is!” Ashley grinned. “Come on, I’ll lend you some money. Are you going to race me or not?”
“Nope,” Kyle smiled. “I’m not going to race you. I’m going to win you!”
Story Courtesy of Tomorrow’s Millionaires.