Ways to get kids excited about saving money

Quick insights

• Playing board games that involve money as a family can be a fun way to explain concepts like earning, spending and saving.
• Modeling smart money habits and openly discussing your financial decisions with your children may positively influence their behavior.
• Opening a savings account for your kids and helping them set savings goals may help build savings habits.

If you want to give your child a head start on money management, you might decide to teach them about saving money at an early age. That can take some dedication and persistence.

Kids may be more likely to adopt a savings habit if you make learning enjoyable, tailor your approach to their age and provide a mix of play and real-world experiences related to money.

In this article, we explain some potential ways to get kids excited about saving and help them develop lifelong savings habits.

9 ways to teach children to save money

Teaching children about money can be a rewarding experience that enhances their financial literacy. From engaging games to glittery charts for tracking savings goals, here are some ways to make saving fun.  

1. Model good money habits

Children often learn by observing their parents. Demonstrating smart money habits, such as saving toward future goals and following a monthly family budget, could positively influence your child’s financial behaviors.

If you share finances with a partner, the way you discuss money may also impact your children. If your children see you working together toward shared financial goals, it may encourage them to be financially responsible and communicate openly about money matters in their own relationships. 

2. Play money-related games

Board games that involve money can be a fun and educational way to introduce financial concepts to children. Playing these board games—some of which are suitable for ages as young as 5—can help explain earning, spending and saving.

Role-playing games, like running a store, allow children to simulate financial transactions. Providing fake money may make the game more educational and engaging.

3. Discuss your financial choices openly

Being transparent about your money decisions may demystify financial planning and encourage your children to save money. If they understand that a fun summer vacation is the result of months of careful saving, it may foster positive feelings about saving money.

Here are some examples of topics you could discuss with your kids:

• Your savings goals and your progress toward them
• How you make a family budget and track monthly household spending
• How you distinguish needs versus wants in your spending
• Positive outcomes of good savings habits, such as purchasing a home or car
• Impulse purchases you choose not to buy and why

4. Get a piggy bank

Piggy banks are another way to teach toddlers and young children about saving. A clear piggy bank allows them to see their money grow, which may be motivating to children who tend to be visual. Counting the savings together could help your child understand the monetary value of bills and coins.

Celebrating their savings milestones often helps reinforce the habit.

5. Open a savings account for kids

Once your child outgrows their piggy bank, it may be time to consider other savings options for kids. A kid-friendly savings account provides many of the same features of an adult savings account, with additional tools for parental oversight. That way, you can intervene if needed to discuss wise money management.

6. Set savings goals

Setting achievable goals for items or experiences your child wishes to purchase could also motivate them to build their savings. It can provide opportunities to develop the skills they’ll use in adulthood to make informed spending decisions.

For example, if your child is deciding between saving for a video game or a day at the amusement park, you might help them consider factors like the features and benefits, cost and time to reach the goal for each option.

Once a savings goal has been set, you can help your child make a savings plan, which usually includes the goal’s cost and a timeline and savings target for achieving it. To reinforce the savings plan, create a savings goal chart, which allows your child to visually track their progress toward their goal. Letting your child decorate the chart and using stickers to track their savings may make the process more fun.

7. Allow children to handle purchases

Once a savings goal is achieved, you may want to consider letting your child handle the transaction. In addition to fostering independence, making real-world purchases can reinforce the notion that money is finite and must be managed wisely.

For young children, cash may be preferable as it visually represents money’s value. If your child has access to other spending tools like a debit card for kids, the purchase can be an opportunity to practice using it. 

8. Provide a weekly allowance

An allowance is a set amount of money you give your child on a regular basis.

Parents may base the amount on the child’s needs or age or tie it to weekly chores. For instance, you could pay them based on the number of tasks they complete or the time it takes to complete them.

However you determine the amount, an allowance can be a helpful teaching tool as you explain budgeting, spending and saving. Managing a weekly allowance could potentially help your child be better prepared to manage a paycheck in adulthood. 

9. Use digital money tools

As you teach your children about how to handle their finances, you may wish to include electronic payment options, as well as digital tools for managing money, in their education. There are budgeting apps for kids that track earnings, savings and spending. If your child has a checking or savings account, the account typically comes with digital banking features.

In summary

Beginning your child’s financial education early may help foster a healthy relationship with money and establish lifelong savings habits. There are numerous potential ways to make saving both fun and educational for kids. Piggy banks and board games can be financial learning tools that are typically suitable for toddlers and young children.

Providing a weekly allowance and opening a savings account for your child are additional strategies to help encourage saving. Your financial habits can also influence your children, so you may want to consider modeling good behaviors and engaging in open conversations about your financial decisions.