What to Do With 20 Dollars as a Kid?

Having $20 as a young person presents a practical starting point for understanding money. This amount offers a chance to learn about financial concepts, how money works, and how it can be managed and effectively used.

Saving Your $20

Saving money is a fundamental financial habit that helps secure future goals. One simple way to begin saving is by using a physical container like a piggy bank or a clear jar. This allows you to see your money grow and shows how small amounts add up over time.

For a more structured approach, a basic savings account can be established with the help of a parent or guardian. These accounts require an adult to be a joint account holder or custodian. While interest earned on small balances is modest, the primary benefit is learning the discipline of consistent saving. Setting a specific, achievable goal, such as saving for a new book or a small toy, provides a clear purpose for your efforts.

Spending Your $20 Wisely

Making thoughtful choices when spending money is an important skill. Before making a purchase, consider whether an item is a “need” or a “want.” Needs are things necessary for daily living, while wants are things that are nice to have but not essential. This distinction helps prioritize how money is used.

Thinking before buying involves asking questions like, “Do I really need this item?” or “Is there something else that would be a better value?” Comparing prices can help ensure you get the most for your money. Avoiding impulse buys, which are purchases made without much thought, can prevent regret later. For instance, you could budget a portion of your $20 for a specific item, like art supplies, and save the rest for a different purpose.

Growing Your $20

Using your $20 as “seed money” can introduce you to entrepreneurship. This means using a small amount of money to create more through effort and creativity. For example, you could use a few dollars from your $20 to buy ingredients for a lemonade stand.

Another option is purchasing materials for simple crafts to sell, such as inexpensive beads for bracelets or yarn for small knitted items. Alternatively, you could invest in supplies for a service, like a car wash or dog walking. These activities teach valuable lessons about turning a small initial investment into a larger sum through hard work and planning.

Sharing Your $20

Giving back to the community is a meaningful way to use a portion of your money. Sharing what you have can create positive feelings and help others in need. You could choose to donate a few dollars to a charity that aligns with your interests.

Many organizations, such as local animal shelters or food banks, welcome small contributions. Another option is to use some of your $20 to buy a thoughtful gift for a friend or family member. Contributing to a shared family goal or a collective gift also demonstrates generosity and teamwork.