Estimated read time: 2-3 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
SALT LAKE CITY -- Parents know that kids are expensive. But, what if you could share the cost of birthday presents, toys and sports gear with your kids and teach them how to save, too?
It comes down to simply teaching kids how to really save, but many parents don't do it because it's not that simple. However, a typical Utah family, the Daytons, have found a way to do it.
Mother, Kat Dayton has folded finances into the family's daily routine and says it's a way to hold off the constant requests from her children for 'stuff' and teach good spending habits at the same time.
"(Our kids) just weren't appreciating the relationship between what it took to buy things."
So now when 7-year-old Zeke and 4-year-old Oscar get paid for their work their $5 payment gets spilt five ways into five separate envelopes:
- Gear
- Charity
- Personal
- Savings
- Gifts
The five envelopes are kept on the wall, a constant incentive to earn the money by doing all their chores.
"They save up and we talk about what they want to spend their money on," says Kat.
Related:
How you can save $10k a year
Save $10,000 in a year? Can you do it? KSL News found a family of modest income, with five kids, who saved more than they dreamt possible.The saving habit is being created for all three Dayton boys, 2 year old Gus has five dollars and five envelopes waiting, until he's old enough.
Of course there are lots of ways parents can teach their kids to save, but the key is to do something, even if it is splitting an allowance up two ways: spending and saving. It's basic but it works and in the face of constant pressure to spend money, to get the fanciest house, car, jewelry; saving is a life lesson a lot of people don't get, unless it's the hard way through overspending.
Zeke and Oscar treasure the things they saved for: Oscar helped pay for his Karate pads. Zeke's cash has bought quite a collection of Pokemon cards and he's saving up for something new.
"I'm going to save $28.50 for my Harry Potter wand," says Zeke. "It's going to be Lord Voldemort's wand."
Of course, parents can only hope these saving habits last into adulthood. But investment experts insist they do, including Ann House from the Utah State University Extension who says, "More so than not, these positive images are going to stick."
Email: rpiatt@ksl.com
