The challenge involves putting money into envelopes, which the child picks at random with each one having a different amount labelled
A dad-of-two has explained a very clever way to teach his kids about saving money during the school holidays.
Jinesh Vohra, aged 36 and from Watford, says the challenge involves using a series of envelopes which the child picks at random.
You’ll need six envelopes, one for every week of the summer break.
Each envelope should then have a different value written on it, depending on how much pocket money – or earnings from a summer job – the child has.
For example, one envelope could have £2 on it, envelope two could be £4, and then envelope three could be £10.
Each one should then be placed in a “lucky dip” box and the child must pick one at random each week – whatever number is on the envelope is the amount they then need to put in.
Parents must then put each envelope somewhere safe and out of reach and by the end of the school holidays, the child will have built up a little stash.
At the end of the summer break, they can then choose to put the money aside for a rainy day, or use it to buy something special.
Mr Vohra is calling the money-saving technique The Sprive Summer Savings Challenge and is asking his friends and families to get involved with their kids.
Mr Vohra, CEO of Sprive, a new mortgage-saving app launching this year, said: “Teaching children the importance of moving money from one pot to another is a great life lesson and is essentially what we’re doing for adults and their mortgages with Sprive.
“It’s always wise to try and not spend everything that you earn and to set money aside so that you can meet your financial goals.
“What matters is the intent to save and that’s exactly what we’re trying to demonstrate through our children.
“The six-week holiday is a great opportunity to start teaching children vital money lessons as there is usually more time in the day to do this and to take the time to explain how much different experiences and items cost.”
The Sprive Summer Savings Challenge is essentially a child-friendly version of the popular envelope challenge used by adult savers.
The challenge, which was shared by NetVoucherCodes.co.uk, sees you pick out 52 envelopes – one for every day of the year – with amounts ranging from £1 to £52.
Each week you pick one envelope at random and put that amount inside.
If you stick to the challenge, and don’t dip into any envelopes, you could end up £1,378 better off by the end of the year.
Other tips to get your children saving
- Ask your children to write down five things they would like to do this summer, then have them research the cost of these activities. Then, have them work with you on calculating whether they can be done within a certain budget.
- Get kids to think about the different ways they can earn money. It might be some chores, or mowing the lawn or starting a little business. Can they be a bit entrepreneurial?
- Work money and budgeting tips into everyday life at the supermarket, at the post office, when paying bills or doing a budget. This can help children better understand the costs of family life and how much can be saved for other things.
- If your children get pocket money, have them write down their purchases each day and add them up at the end of the week can be an eye-opening experience.
- Ask children to sort out old toys and ask if they’d like to sell them to make extra money via their parents’ Facebook Marketplace, Depop or Ebay.