How to Teach Young Children to Save Money

Teaching young children to save money is easy once you’ve acquired a few principles yourself. Showing them the value and ways to save can be fun and exciting as the children watch their savings grow.


The easiest way to start a young child on saving money is to teach them the importance of having money when they want it. If they spend everything they have each time they have money they will never have any money to spend.


Some families set up three piggy banks for children to begin learning how to save. Each time the child receives money (birthday’s, gifts, Christmas, chores etc.) have the child put 10 percent of their earnings or gift into the savings piggy bank. This way they will learn that they need to save 10 percent of their money each time they receive money. Explain how it will build up over time and they will have more and more. 

If an incentive is needed, help the child pick out an item that they really want to purchase. Explain how they will have to save their money for said item. Help them keep track of how much money is saved and how much more is needed in order for them to purchase the item. Some young children begin saving for a car as early as 9 or 10 years of age. When children have a goal in front of them it’s often great incentive to save money.

As the child grows older this money can be put into a bank and the child can learn to keep track of his or her savings by filling out an account ledger and keeping track of what goes in and or out of the account.


Ask any wealthy person and you’ll find that they give away a portion of their money to charity, a local church or some other such entity. Giving is a part of living. Teach your child to give 10 percent of their money to a charity, church (offering or missions) and they will learn a valuable lesson on saving money as well.


Naturally a young child doesn’t have a lot of bills to pay, but teaching them to spend their money wisely will go far in teaching young children to save money. Help them to really think about what they’re about to spend their money on. Is it a need or a want? Can they do without it until another gift or allowance comes in? Teaching young children to manage their money will go far in helping them as adults to meet their expenses.

Following these tips is a great way to teach a young child to save money for their future.