Is your son’s savings balance bigger than your daughter’s?
Aussie kids are getting a jumpstart on their savings, with 77% of 6-13 years olds already working on their rainy day fund - but girls are still lagging behind when it comes to the bottom line of their savings account, according to Roy Morgan research.
The research, from Roy Morgan’s Young Australian Survey, showed that although 79% of girls had savings compared to 75% of boys, the boys were managing to stack up larger amounts. On average, boys had a total $279.90 in their savings account - $11.22 more than girls, who had an average $268.68 saved.
The difference could be explained by the fact that although girls generally earn 50 cents more each week in pocket money, boys tend to rake in more when it comes to cash gifts on occasion, like Christmas and birthdays.
Commenting on the gap, Roy Morgan CEO, Michele Levine said, “Whether girls need to write an angry complaint to Santa or not, they should be proud of the fact that more of them are saving than boys, which will hold them in good stead for the future and make them able to purchase the items and toys they truly desire.”
“The value of saving is an important lesson kids learn, and the means in which to save are important. This was last explored in 2016 where we reported Aussie kids were saving more than ever, but girls were lagging behind boys,” Levine said.
The 2016 report showed that 76% of kids had savings, up from 75% in 2008, and boys savings grew by 3% more than girls in that year.
How to help your kids boost their savings stash
- Help them set savings goals. One way to help keep kids motivated to save is by giving them a goal to set their sights on. This goal might be a dollar amount, but you can make it more exciting by making it something fun like getting to buy a new toy. Remember, it doesn’t matter so much if kids spend their stash after reaching a goal - the key is to form the habit of saving.
- Get them involved. Helping kids to appreciate and understand the value of saving is just as important as helping them rack up dollars in their account. To do that, make sure they’re in charge of the process, and show them their progress using the charts, graphs and statements that most kids bank accounts come with.
- Offer a little extra incentive. Once kids are well on their way to saving, you may want to reward good habits by offering an extra bonus when they reach their goal. For example, you might tell your kids that for every $10 they save, you’ll contribute and extra $1 to their balance.
- Put it in a high interest savings account. Some of the best kids savings accounts around at the moment offer returns of up to 3.50%, which can help boost your kids’ balance. Get started finding the right place for your kids to stash their funds by checking out the winners of our Experts Choice Kids Savings Account Awards.