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Teaching Children How to Save Money

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Teaching children how to save money is an important lesson in financial responsibility and independence. Making it a part of their everyday routine can help kids understand the value of saving and develop skills which will benefit them long into adulthood.

With the right strategies, parents can effectively teach their children how to save money without making it seem like a chore; some of those strategies include finding a place to save, setting goals, and offering incentives.



Finding a place to save money can be a challenge, especially for kids. A great starting point for teaching kids about saving money is with an old-fashioned piggy bank. A piggy bank serves as a physical reminder to kids that their savings are growing and provides them with an easy way to save all types of loose change, bills and as they get older, checks. Encouraging children to put aside some of their allowance or income in their own piggy bank is a powerful way to illustrate the value of saving money. Piggy banks also serve as a visual aid to show how quickly funds can add up over time.


Parents, being their children’s role models, should take an active role in helping their children learn about the saving process and its importance.

Real Estate Broker Jessica Nieto suggests creating a savings goal, "it is one of the most collaborative, encouraging things parents can do for their children. If you can begin teaching kids the importance of early investing, no matter how big or small, you are preparing them for a much brighter future”.

Let's say a kid wants a specific toy which costs $50. The kid only has $5 in their piggy bank. Encourage the kid to save those $5 by making them build toward that $50 toy.

By establishing such a goal, the kid will turn that one-time saving into a potential habit which in the future would establish that kid’s financial standing as well as teach them about the topics of investment and responsible savings; lessons which are very valuable during the adult stage of life.


Incentives are an important part of a child’s life; rewards children to be their best; if they get rewarded for a certain behavior or achievement, they’ll understand that what they are doing is good and will continue doing so.

Incentives can be used to condition a person; behaviorist B.F. Skinner introduced the topic of operant conditioning, allowing future generations to condition their children and pets, the use of incentives in this specific topic does not focus on conditioning, but rather focuses on teaching.

Example: A child wants a laptop, rather than telling them to save for the expensive object themselves, offer to split the cost.

By splitting the cost, the parent rewards the child for saving at least 50% of the needed cost. The offer of the incentive will encourage the kid to not only save but will also provide them with the reassurance that they are not alone in the process and that their parent has their back, a feeling that each child seeks.

It is never too early to start teaching children the importance of saving money and setting goals. Teaching kids how to save money while they are young can help them develop lifelong habits that will lead to financial success.

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