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Million Bazillion

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Season 1Episode 5Aug 18, 2020

Saving money is really hard to do

So we’re gonna talk about why — and what we can do about it.

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Saving money is really hard to do
Leigh Luna/Marketplace

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Jed’s treehouse needs repairs, but it’s gonna cost more than he has right now. Saving money can be tough — and even tougher to talk about! So this week on the show we’re gonna get the conversation started and learn a few ways to think about spending and saving our money. We’ll sit down with some experts, do some mythbusting around saving and hear from a young Dollar Scholar who’s got a unique way of keeping track of her savings. Plus, singer Natasha Bedingfield’s got a cheeky idea for a twist on the piggy bank.

A four-panel comic depicting a young ghost saving money. The first says "Set up two jars, one for saving and one for spending." The second shows the ghost looking at a picture of a treehouse, and it reads "Picture what things will look like when you get the thing you're saving for." The third says…
 
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And now … tips for grown-ups listening to “Million Bazillion” with kids

Money talks

Take a minute to recap the episode and review the key points. Here are some questions to get the kids going:

  1. While Jed’s been trying to save money for repairs, who’s been camping out in his treehouse?

  2. Jed spent some of the money he was saving on a new ice cream-making scooter. When you have a choice of spending your money on different things, there’s the dollar price you pay for the thing you choose — and there’s another cost. Do you remember what that’s called? It’s the thing you missed out on because you chose to spend your money on something else.

  3. Saving money is hard, but there are good ways to practice. Do you remember what the “jar system” is?

  4. Finally, let’s practice future thinking. Think about something you’d like to save money for, and write a little story about what your life will be like when you get it. The better you picture your goal, the more you’re likely to save for it. 

(Click here for the answers)

Tip jar

Talking to kids about spending and saving isn’t easy. When the time comes to start saving, it helps to already have some goals in mind. Here are a few tips we heard from other folks we consulted for this episode:

  • Amanda Krische at the Young Americans Center for Financial Education, a bank for kids in Colorado, said it helps to have kids differentiate their shorter-term goals (things like new school supplies or clothes) and long-term goals (a new bike or even a car or college tuition). “Write it down on paper — or draw it,” with the time frame spelled out, Krische says. The bank has more activities and resources here. 

  • Sonia Brown, a teacher in New Jersey, likes to use resources provided by her local chapter of Junior Achievement. She says she encourages her middle school students to create a budget by adding up the money they have coming in each week and then breaking down what they need to spend it on and what percentage they want to save. For big-ticket purchases, like a new pair of sneakers, she asks them how long they’re willing to wait — then she has them break down how much that means they’ll need to save each week. “A lot will say … OK, I can wait two months to get my sneakers,” Brown says.

Finally, an additional resource for grown-ups. For more context on the wage gap, we recommend this widely cited 2018 study from the Samuel DuBois Cook Center on Social Equity and the Insight Center for Community Economic Development: “What We Get Wrong About Closing the Racial Wealth Gap.”

Gimme five

This week we talked all about saving money, so we want to know: What have you been saving up for? And how do you do it — a jar, a piggy bank, a real bank account? What’s your method? Send us your answers here. 

And keep those smart questions coming, too! What more do you want to know about money? We may just use your question in a new episode of “Million Bazillion”! Click here to get in touch.

Money Talks answers

  1. Squirrels and a ghost

  2. Opportunity cost

  3. Set up two jars — one just for spending and one just for saving. Every time you get some money, immediately put some of it in one jar and some of it in the other.

  4. Answers will vary

(Click here to go back to the questions)

The Team

Thanks to our sponsors

NGPF

The Ranzetta Family Charitable Fund and Next Gen Personal Finance, supports Marketplace’s work to make younger audiences smarter about the economy. Next Gen Personal Finance is a non-profit that believes all students benefit from having a financial education before they cross the stage at high school graduation.

Greenlight

Greenlight is a debit card and money app for kids and teens. Through the Greenlight app, parents can transfer money, automate allowance, manage chores, set flexible spend controls and invest for their kids’ futures (parents can invest on the platform too!) Kids and teens learn to earn, save, spend wisely, give and invest with parental approval. Our mission is to shine a light on the world of money for families and empower parents to raise financially-smart kids. We aim to create a world where every child grows up to be financially healthy and happy. Today, Greenlight serves 5 million+ parents and kids, helping them learn healthy financial habits, collectively save more than $350 million to-date and invest more than $20 million.

Sy Syms Foundation

The Sy Syms Foundation: Partnering with organizations and people working for a better and more just future since 1985.