Saving money as a child
We still have stone-age brains set to survival mode. They encourage us to act on impulse, favouring frittering away money today over saving for tomorrow. Saving money is therefore about learning to resist the urge to act on the impulse so that you can reach your future financial dreams.
Saving money requires you to make small, smart decisions about managing your money. Decisions like understanding the difference between needs and wants. You also need to be patient, because it takes time. Yes, this can seem daunting and it’s not always easy. That’s why we put together a few tips to help you get started!
Tips and tricks
Gimi - Financial Superskills for Life®
Using the Gimi app you can put your money asidetogether with parents. With Gimi it is not only about putting money aside, but it can also teach you about earning more money. The Gimi app helps you talk about money with your parents, keep track of chores that you can do around the house for some extra pocket money, and you even have your own money advisor in the app – Piggy!
Note that while Gimi is a tool that helps you manage your money smartly, it is not a saving's product, such as those provided by banks.
The general use of piggy banks is to store loose change in a fun way. Modern piggy banks are not limited to the likeness of pigs, and may come in a range of shapes, sizes and colors.
Did you know that Gimi’s financial advisor, Piggy, was modeled after Piggy bank?
You can also set up a so called “saving jar”. It is similar to a piggy bank, but it’s more plain and usually for saving your money for a shorter while. With a saving jar you can see how much money you have right now, so it might be a bit more tempting to take from it than if you have a piggy bank.
Child saving’s account
Children’s saving accounts, also known as a junior savings account are bank accounts where parents, family members and children can save money for the child's future. It is a great way for children to learn how to manage money, and of the importance of saving for the future.
If you are curious about getting started with a child savings account you need to speak with your parents first
Save for a dream
Visualize your dream
It doesn't matter if you're saving to get something, do something or give something. Or if you just want to save money. As long as you know what you are saving for and how much it costs you're off to a great start. Your brain will now have something concrete to focus on, it will make it much easier.
When you get money you may feel rich and want to spend it all just because you can. Instead, keep it chill. Remember that it's your stone age brain that is trying to play you tricks.
The quickest way to reach a dream is earning more money. As long as you don't spend it on something else of course. Learn how to earn pocket money as a kid
Interest makes money grow
Money can grow if you save them. That is because of interest.
If the interest rate is 5% per month, it means that £100 will grow to £105 if you save them for one month. And if you have £500 they will grow to £525 in a month.
What's even better is something called compound interest. It means that you will earn interest on interest. For example, those £100 will be £110 in two months. And in a year it will be £180.
In short, the more and the longer you save the more interest you get.