BACK5 Tips for Making Saving for Education a Family Activity
July 13, 2023
When it comes to saving for your child’s education after high school, every dollar saved ahead of time is a dollar you and/or your child won’t have to borrow and repay with interest later. But being a saver isn’t just a one-time thing, it’s an identity and one you should share with your children. When children are involved in saving for their future education they learn good money habits, develop self-reliance, and gain confidence, all while taking an active role in saving for their future. Whether you choose to invest in a college savings plan or simply let your money accrue interest, the earlier you and your family begin saving the more potential your money has to grow! However, even if you weren’t able to begin saving when your child was a newborn, it’s never too late to build good savings habits together.
In celebration of the 10 year anniversary of the $500 My Alfond Grant being automatically invested for children born to Maine residents, today we’re sharing 5 ideas for making saving for your child’s future education a family activity.
1. Help your child build a budget
If your child earns an allowance or receives monetary gifts for birthdays or holidays, help them create a budget to determine where their money will go. Allocate a percentage to savings, a percentage to giving, and a percentage as “fun money” and help them track their savings and spending over time. This article from The Balance has more tips for budgeting with kids.
2. Make saving something to look forward to
For many kids, the idea of spending their money is more enticing than saving it, but saving can be fun and rewarding, especially when they see their savings adding up. Contributing to their education savings account on holidays, birthdays, and other special times of year can help add touchstones to your savings plan – dates that your child can look forward to to see their savings grow!
3. Help kids visualize their future
Kids’ plans for the future change daily – sometimes hourly! One day, they may dream of becoming a teacher, the next a business owner. While your kiddo’s goals may fluctuate, what can remain a constant for them is your support. Help your child visualize their future by encouraging them to dream big and plan regular activities where they might engage in future-focused play or learning, like drawing themselves in a future career, reading books on subjects they’re interested in, and using our free printable downloads!
4. Have family conversations about money
Most of us grew up in homes where the topic of money wasn’t discussed – especially with kids. But keeping money talks between adults is a missed opportunity for kids to learn about money and how it works. You don’t need to include kids in every money convo, but picking and choosing conversations based on age can help kids learn about saving, spending, and more. If you need some ideas for where to start, use this link for guidance on which conversations to have and when.
5. Encourage an Entrepreneurial Spirit
Earning their own money helps kids feel empowered. Whether they’re earning an allowance through chores, doing odd jobs, or holding lemonade stands or car washes, making money that they can then put towards savings can give kids a sense of responsibility for their own future. Get in on the fun by helping them brainstorm ways they could start a “business” – this could include working out a chore chart, accompanying them while they mow neighbors’ lawns, or helping them make signs for a weekend lemonade stand.
