OGDEN, Utah — Cold hard cash gifted to kids for Christmas may have a better use than being spent on the newest video game or stylish new sneakers.
Just ask 9-year-old Elsa Kate Dees in Ogden who is already earning awards for her stellar saving.
High-yield savings accounts offer about a 5% annual return and dabbling in the stock market can be even more lucrative. The S&P 500 averages about a 10% gain every year.
While investing was once reserved for adults, it's now accessible to kids under their parent's supervision.
Elsa doesn't complain about doing chores as she knows each completed task will earn her a little money from her parents.
But instead of running out the door to spend her cash, Elsa has bigger goals in mind.
"Make sure you save your money instead of just spending it all the time," she explained to FOX 13 News.
The fourth grader saves her money in an app called "Busy Kid." She did so well with her savings this year that the developers honored her with their "Best of the Best" award for 2023.
"In a world where finances are in a mess this is exactly what we are trying to do," explained Gregg Murset, CEO of Busy Kid. "Change the next generation in how they think about this stuff."
Murset said the app allows kids to invest their money and use their very own debit card to make purchases with parental approval.
He believes that children as young as 5 years old, kindergartners, can learn smart financial habits.
"If they can learn it early in life, it changes how they think about money, how they deal with their own money and it sets them up for success in the future," Murset said.
Elsa's parents have the same mindset, encouraging their daughter to categorize her money into savings, spending and charitable contributions.
"I hope these principles set in and they stick she can take these her whole life," reflected Matt Dees, Elsa's father. "It gives her this great foundation of financial achievements we want to instill in our kids.
Elsa is saving up with her sights set on a trip to Harry Potter's Wizarding World in Florida.
"I have been trying to save everything," she explained. "It's easy to save money because then you’ll have more money that you can get other things that you want instead of just spending it really fast."
