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Looking for an easy way to save money for your child?
When my kids were babies I desperately wanted to stash away money for them but was working with a too-tight budget. At the time putting away even $50 a month seemed to be a far off goal.
I needed something that was more attainable but that would also make a difference.
Here’s the system I came up with.
How to Save $7,976 for Your Child
You put away one dollar per week based on the age of your child. For example, for a one year old you put away one dollar per week. For a three year old you put away three dollars per week. For a five year old you put away five dollars per week and so on.
If you start when your child is fairly young the gradual increases in savings shouldn’t be much of a burden since your weekly contributions only go up one dollar per year.
By the time your child turns 18 you’ll have saved $7,976! And that’s without accruing any interest.
Here’s a table showing how those little amounts of money add up to something big:
| Age | Amount Per Week | Total Per Year | Running Total |
|---|---|---|---|
| 1 | $1 | $52 | $52 |
| 2 | $2 | $104 | $156 |
| 3 | $3 | $156 | $312 |
| 4 | $4 | $208 | $520 |
| 5 | $5 | $260 | $780 |
| 6 | $6 | $312 | $1,092 |
| 7 | $7 | $364 | $1,456 |
| 8 | $8 | $416 | $1,872 |
| 9 | $9 | $468 | $2,340 |
| 10 | $10 | $520 | $2,860 |
| 11 | $11 | $572 | $3,432 |
| 12 | $12 | $624 | $4,056 |
| 13 | $13 | $676 | $4,752 |
| 14 | $14 | $728 | $5,480 |
| 15 | $15 | $780 | $6,260 |
| 16 | $16 | $832 | $7,092 |
| 17 | $17 | $884 | $7,976 |
By the time your child reaches age 18 you’ll have accumulated $7,976!
Put the money in an interest bearing account or invest it and you’ll have accumulated much more. And if you want to earn even more interest you can try this method in reverse. By starting with the big numbers first, a larger chunk of money will be sitting in the account sooner and the interest you earn will have more of a chance to compound.
You can use this to go toward your child’s college education, first car, or anything else that he or she needs at the time.
Do you know of any other easy saving strategies for kids?
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About Alexa
Alexa Mason is the blogger behind Single Moms Income, a personal finance freelance writer, and an online entrepreneur. Come hang out with her on Facebook and Pinterest.
Reader Interactions
Comments
Brit saysI love this! Going to have to give this technique a try. Thank you for sharing this.
See AlsoInvesting in an HSA: Don't Sit on Cash Like Everyone Else - Physician on FIREFinancial Goals: Living on Last Month's Income - Its Not That Hard to HomeschoolEmergency Fund 101: Everything You'd Ever Want to Know About Emergency Funds60+ Unique Ways To Make Money Homesteading | Making A Profit From Your Backyard- Alexa says
Thanks. Glad you liked it 🙂
- Connie @ Savvy With Saving says
It’s crazy how much a dollar a day can add up to. It’s a great savings method for anything! Plus, you can accrue interest on it as well.
- Alexa says
Yes with interest that money can grow a lot faster!
- scooby says
Great idea!! i wish more parents would think of stuff like this!!
- Alexa says
Thank you! It’s perfect for anyone on a tight budget with a young kid.
- Mrs. Frugalwoods says
Great idea! I’m a big fan of saving any amount that you can. Other the years, if it’s earning interest or it’s invested, it’s going to grow!
- Alexa says
Yes it’s awesome how those small amounts can add up to something big!
- Gretchen says
Very cool! You could also do this by 2-week increments if you get paid bi-weekly. Either way, it’s a very small amount of money!
- Bonita says
I like the idea of doing this in reverse. Having raised two teenagers, I can attest that as they get older they become a lot more expensive. Granted, they can also work, but if you can put the big bucks in earlier you’ll be glad you did.
- Ryan says
Looks like you added an extra $20 for year 13. Should be $4732 instead of $4750. This error propagates all the way to the end. Should end with $7956.
- Janell says
Hello, I am dropping by from the Frugal Friday Link Up Party. This idea is super innovative. Thanks for sharing this awesome way to save money for my ( Future) children. It will be awesome for their financial futures…
- alicia says
wow this is something I’ve never thought of! Really good articles lately1 Been catching up on some of your posts
- Renee says
That’s a great idea! I’ve been saving coins for my son over the years and cashing them. I’ll try that method in addition to the coins.
- Anne says
Great idea. My husband and I already started to save money for my daughter. We were thinking of opening mutual fund for her.
- Alexa says
That’s a great idea too!
- Jonathan Craig says
This is a great savings plan in general! I used a similar method to create a cushion and change careers back in 2011. Worked wonderfully!
- Mindi @ Build Your Dream Body says
Wow – great idea! Totally doable too and can give each child a nice little cushion to start living on their own. Thanks so much for breaking it down like this. 🙂
- Denise Renae says
Yes! This is great. My husband and I started with our first child putting away $28/month (or $7/wk). We have 4 children now, so its over $100/mo we are setting aside for them (but it gradually increased as each child was born.) Our goal is to have $5,000 for each child by the time they turn 16.
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