Monday, March 28, 2016

Teach Your Kids These Automated Micro-Saving Tricks

Automated Micro-Savings

“Little by little does the trick.”

That’s the moral of The Crow and the Pitcher, an Aesop’s fable. A thirsty crow drops pebbles into a near empty pitcher until, little by little, the water raises within beak’s reach.

Teach your kids that little by little can do the trick when it comes to saving money too.

Create a savings jar, a savings account, or a savings card for your child, and then try a few of these tricks:

  • Save the spare change. Round up the amount of every purchase to the nearest dollar, and save the difference. Just bought a pack of gum for 59 cents? Save 41 cents.
  • Save the remainder. At the end of every week, sweep whatever pocket money your child hasn’t spent into savings. Spent only $5 of a $7 per week allowance? Sweep $2 into savings.
  • Save the penalty. Let loose on a swear word? Move $1 from spending to saving.
  • Save the luxury tax. Impose a 10% tax on purchases for “wants” and place the proceeds in savings. Bought a candy bar for $1.25? Move 12 cents to savings.
  • Save the tip. Reward a wonderful accomplishment or thoughtful deed with a payment to savings. Helped dad unload the car without being asked? Pop 50 cents in savings.

Those are exactly the micro-savings tricks that a new crop of personal finance apps are automating for adults. Apps like Digit, Dyme, Acorns, Qapital, and Tip Yourself. Before you know it, you’ve painlessly stashed away a nice little bundle for emergencies, a vacation, an initial investment, you name it.

Share these “auto-magic” tricks with your kids so they know little by little, they can save a lot too.

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