7 Ways to Teach Kids How to Save Money

It’s never too early for them to be financially literate.

Updated on August 14, 2017 14:08 pm

Luisa Wong

how to teach children to save money

Your child will soon need to make financial decisions so it’s best to educate them about it early in life. One of the things they need to learn is the value of saving so that when the need arises, they know exactly where to turn to.

Worried they might not welcome the idea for now?

Try these fun and relatable ways to teach them how to save because the earlier you start, the better.

talk to kids about saving money

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1. Talk to them.

“Kids can start the process of understanding money at an early age,” said Gary Swim of financial services firm Swim Retirement. As a parent, you have the power to facilitate that process for your child. The first thing to do to let your kids understand the importance of saving and using money wisely is by talking to them before even introducing any money-saving habits. Make them understand the difference between wants and needs as well as the long-term impact of learning how to save early in life.

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2. Give them their own saving tools.

To encourage kids to save, they must have a place where they can keep all their saved money. It could be a classic which they can fill up with coins or paper bills. Envelopes and jars are great too especially if you want to be a bit creative. You can draw on the envelopes or paint the jars with things that will motivate your kids to save more such as a the toy he’s been wanting to buy or a trip to his favorite amusement park. Check out this piggy bank from Toys R Us or this DIY money saving jar.

saving tools to make saving sounds fun

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3. Create a timeline or a goal chart.

Aside from saving a certain amount of money, your child should also learn how to save for a specific period of time. Creating a timeline or a goal chart will let him see how far off he is before he can save for what he wants. It can be more fun by using sticker or colorful markers when ticking off the chart. This way, putting more money in his piggy bank or jar is something your kid looks forward to.

reward them for saving money

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4. Reward them.

After setting goals, consider offering rewards to your child if he’s able to achieve his goal. This motivates him to save more and makes him see the value of working toward something. Try giving him a small present if he saves a certain amount of money for a month.

using games to teach them how to save money

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5. Incorporate games.

If you want to teach your kid something, incorporating games in the process is an effective strategy because it feels more of a play for them than a burden or a responsibility. Challenge them to save a specific amount for a week or a month and give them incentives if they’re able to do it. Or use board games such as CASHFLOW for Kids that teaches kids important money lessons.

teach children the value of money

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6. Encourage them to spend wisely.

To be able to save, one must know how to spend wisely. Teach your kids how to be thrifty by looking for deals or discounted items, comparing prices on different stores or websites, or even buying secondhand items in good condition. You can do this by bringing them with you when you shop, by telling them to observe, and by asking for their opinion sometimes.

setting an example by saving money together with kids

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7. Be a good example.

You’ve probably been told a lot to set a good example for your kids. Saving is not an exception. They have to see that you are saving money too for them to think that saving is normal. You can even create your own savings jar and timeline to meet your goal. Do you want to buy a new kitchen tool? Show your child that you are saving for it, too.


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Cover photo courtesy of Family Education

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