Hey there! It's Talk About Money Tuesday, my favorite day of the week!🤑

Back in the day when I used to carry cash, I would always boosting my savings with the leftover change from purchases I’d made during the week. I would just chuck the money into a big plastic jar and forget about it. By the end of the year, I often had around $200 or so.

In 2026, my supplementary savings tactic has an official name: spare-change saving.

But official name notwithstanding, spare-change (or round-up) saving is a simple and powerful idea. It's an ideal way to get young people to build the habit of setting aside small amounts of money without thinking too hard about it.

For parents and mentors, introducing savings habits early can help youth realize saving isn't all or nothing. It can be flexible and they can control it.

In the spirit of America Saves Week, let's get into how you can connect saving money to financial literacy for the young people in your life.

Money Stat

43%

Tapping an emergency fund to cover an unexpected expense isn't an option for many Americans. According to a U.S. News survey, 43% of roughly 1,200 adults said they didn't have enough savings to cover a $1,000 emergency expense.

This data point can be used to show young people that preparing for financial setbacks isn't just something "boring" that parents and other adults make them do. It's a life skill that gives them the confidence to handle the inevitable real-world financial challenges down the road.

Guiding your kids to set aside small amounts of money regularly teaches planning and patience, while normalizing the practice of saving.

Money in the News

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The news: Apps that let users save spare change and invest it can give teens and young adults a low-stakes introduction to saving and investing.

What it means for young people: Spare-change or round-up savings offer an easy entry point for them to build confidence with money. They also highlight an important lesson: Saving doesn't have to start with large sums.

Tips for parents & mentors: Saving can feel overwhelming for kids, but spare-change strategies make it easy for them to build a saving habit without feeling pressured.

➡️ Use low-tech savings tools at first. Simple jars or envelopes can work just as well as spare-change apps, making it easy for teens without debit cards to participate. They also let them savers see their money grow — although not as much as it would if it earned interest.

➡️ Set realistic expectations. Spare change grows slowly, so emphasize that it's a supplement to bigger savings goals, not a replacement.

➡️ Connect savings to goals. Link the spare change to a short-term goal like a small treat or toy.

➡️ Remind your saver to use spare-change apps cautiously. Remind your teens to avoid overspending just to generate more spare change.

Get in the Zone

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Money skill: Automating small savings

Why it matters: Let's face it, even some adults have a tough time remembering to save. And when they do remember, they don't always pay themselves first. Since the best saving habit is the one that actually happens consistently, teaching young people to automate their savings is key.

Try this: Help your child set up automatic transfers, even if it's as little as $2 or $3 a week. This builds a habit of saving, which is what matters in the long run.

Encourage a "pay yourself first" mindset with any income and explain that saving before spending helps them reach their financial goals faster. Saving isn't about restriction, but about choice and control.

Also, kids (like adults) are more likely to follow through on savings with a little incentive, like a short-term savings match from you.

With their savings on autopilot, young people can turn small actions into long-lasting financial habits.

Smart Money Quiz

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If a teenager saves $10 a week starting at age 15 and earns a modest return, what makes the biggest difference in how much money he'll have later?

A. Increasing the amount saved each week

B. Choosing the "best" investment every time

C. Saving only when he has "extra money"

D. Starting to save earlier

(The answer is at the end of this newsletter.)

Loose Change

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🎓 Some colleges are debuting three-year bachelor's degrees, which helps cut the amount families need to save to pay for higher education.

📈 The savings rate has been trending down for most Americans in recent years. Can you guess which generation is the exception?

🐷 A thrift store shopper bought a $10.99 piggy bank that she assumed was empty. It wasn't.​

Thanks for reading! If you want to read some of my past newsletters, click here. And if this newsletter was forwarded to you, please subscribe ​here​.

'Til next time,

Audrey
​Founder &
Certified Financial Education Instructor​
The FinLit Zone

ANSWER​
​D. Starting to save earlier. What matters most is time. Money has more time to grow through compounding, meaning it earns returns on both the original savings and the growth itself. Even small amounts saved consistently can grow to more than larger amounts saved later. ​

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