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Savings Tips for Children

Good money management skills start early. Use these tips to get your children started toward a path of financial success in the future.

Count money with small children.

For children under four, you can practice counting actual currency, learning what different coins are worth. They can put their coins in a piggy bank to start the early fundamentals of saving. Put a picture of something to save for on the piggy bank, and make a chart to show them where they're at.

Give your children an allowance.

Paying an allowance for chores teaches children the value of earning money, as well as making smart choices when it comes to spending their earned money.

Allocate the allowance.

Have your child divide their allowance into different groups like spending and savings, allocating certain percentages to each fund. This way, they aren’t spending everything that's saved. You can also have a portion of their savings put towards gifts for family members for birthdays, etc., so that they learn the value of thinking about others.

Match savings.

Offer to match their savings amount—even up to 100%, and then lower the percentage as they get older.

Practice Responsible Shopping.

Teach them how to comparison shop and to wait for items to go on sale. You can also start teaching young children the difference between wants and needs.

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