5 Ways Children Can Earn Savings Toward Their Future Education

Growing up, saving money was never a strong point of mine. It didn’t matter if it was just a nickel; if I had it, chances were that it would be spent immediately.

Don’t get me wrong, my parents really tried to help and teach me to save…I just wouldn’t listen. They opened a bank account for me, but I spent it all the minute I turned 18, and not on my
education like I should have. The minute I got a job they wanted me to pay rent just so they could tuck it away for my future, and I refused.

Needless to say, I look back now and regret my decisions. I was young and foolish and, to be honest, had a lot more handed to me than I would like to admit. I know now that I didn’t realize
the true value of money.

Regardless of the regret, I’m happy I made these mistakes. Because of what I learned from them, I’m now able to give my children advice based on what I did wrong and how, in retrospect, I would have done things to benefit myself and my future.

Starting early and working for my money would have been helpful. Of course, I didn’t know it then, but there were (and still are) a lot of ways that kids can make their own income:

● A paper route. I’m not sure what the age limitation is, but I’m pretty sure that with a little help from an adult this can be accomplished.
● Picking up trash. Not just any trash, but things like bottles and cans. Some cities and states will have recycling facilities where you can drop these off and receive $.05 or $.10 per item that you bring in. When I was younger, some stores even accepted them.
● Yard/Garage sale. If your child has toys they don’t play with, books they don’t read or clothes that don’t fit, set up a weekend or even a day to throw a yard/garage sale and maybe even make some money off your junk too.
● Lemonade/Bake Sale. Kids love to help out in the kitchen. Put them to work making thirst-quenching drinks and tasty treats for a hot summer’s day and see how many passersby they can get to stop and buy one. I know I’m a sucker for a little face and usually buy whatever they are selling.
● Yard work/Chores. Winter, summer, spring or fall…there’s always some kind of yard work that can be done and there’s usually someone in the neighborhood or a family member who can’t quite do it anymore. Heck, it may even be that they just don’t want to do it anymore! Have your child go door-to-door or get on the phone and see what they can do to make someone else’s life a little simpler.

Any of the tasks mentioned above will give a child the sense of pride that comes from a hard day’s work, and they can make a little extra cash out of it as well; half for them to spend as they please and half to put away for their future. It will instill the value of money in them and why it’s important to save for a rainy day or for a post-secondary education.

My children both have their own piggy banks and bank accounts. My 7-year-old knows that any coins go into his piggy bank, any bills get deposited into his account, and any gift cards he receives for birthdays and special occasions he is allowed to use as he pleases. The occasional time when there is a book fair at school or something extra that he wants, he can dip into that piggy bank to make a purchase, but only if it’s something that’s going to be an investment in his future, such as a learning activity.

Children Can Earn Savings Towards Their Future Education Through RESPs with Heritage Education Funds

The next approach to staying invested in my sons’ futures will be to open a Registered Education Savings Plan (RESP), where we can choose to deposit as little or as much as we want in monthly or annual contributions of up to $50,000. Having an RESP could entitle my boys to a few education savings incentives from the government (although keep in mind that certain conditions apply):

● Up to $7,200 from the Canada Education Savings Grant (CESG)
● Up to $2,000 from the Canada Learning Bond (CLB)

Depending on the province you reside in, there are other incentives that your children could be eligible for as well:

● Up to $800 from the Alberta Centennial Education Savings Plan Grant (ACES) for Alberta residents
● Up to $3,600 from the Quebec Education Savings Incentive (QESI) for Quebec residents
● Up to $4,500 from Saskatchewan Advantage Grant for Education Savings (SAGES) for Saskatchewan residents

For more information on opening up an RESP, I’d recommend visiting the Heritage Education Funds website to see what works for you: http://www.heritageresp.com/

Happy saving!