Savings Goal Calculator for Kids

How to use this calculator

Enter the goal amount (a Lego set, a bike, a video game), how much is already saved, and how much will be added each week or month. The calculator shows exactly when they'll hit the goal — and if you're paying savings interest, how much extra they'll earn by waiting.

Why savings goals work for kids

Open-ended saving is boring. Goal-directed saving is concrete: "7 more weeks and I can buy the Lego set" is something a 6-year-old can understand and stay excited about. Kids who practice goal-directed saving are 2x more likely to save as adults, according to research published by T. Rowe Price. The habit, not the amount, is what sticks.

How much interest should I pay on their savings?

Anywhere from 1% to 10% annual works. Higher rates are fine because the total dollars are small — the point is to make interest visible and teach that money grows. A good starting point is 5% per month on the savings balance (effectively ~60% APY for teaching purposes, but only on a $50 balance).

Want more on this? See our compound interest calculator for the long-game math.