Where Do Kids Save Money?

Kids typically save money in a variety of places depending on their age and goals, from traditional piggy banks to formal bank accounts and debit cards.

Based on how children receive and manage money, such as through an allowance which helps teach them the value of money, younger children might keep their savings in a piggy bank, but older ones might want to keep their money in a bank or on a debit card for kids or teens while working on their goals.

Common Ways Kids Save

Here are the primary methods children use to save their money, as indicated by common practices and the provided reference:

1. Piggy Banks (Often for Younger Kids)

• Traditional Method: A physical container, like a piggy bank, jar, or box, is a classic way for young children to start saving.
• Why it Works: It's tangible, easy to access (though sometimes hard to get money out without breaking!), and provides a visual representation of savings growing. It's ideal for small amounts and short-term goals.

2. Bank Accounts (Often for Older Kids & Teens)

• Formal Saving: Opening a savings account at a bank is a significant step. These accounts are often custodial (managed by an adult) or joint until the child is older.
• Benefits: Bank accounts offer security, can earn interest over time, and introduce kids to the formal banking system. This is often where older ones might want to keep their money.

3. Debit Cards for Kids or Teens

• Modern Access: Some financial institutions offer debit cards specifically designed for younger users, often linked to a parent's account or a dedicated kids' account.
• Usage: These allow older kids and teens to make purchases or access their money electronically, providing more independence while parents can often monitor activity. This is another place older ones might want to keep their money.

Saving Methods by Age Group

While there's no strict rule, the method often aligns with the child's age and financial maturity:

Teaching children about saving, whether through an allowance or other means, helps them understand financial concepts and work towards their goals. The saving method evolves as they grow and handle larger amounts or require easier access to their funds.