How To Teach Your Child the Value of Saving

Saving is one of the most important financial lessons that you need to teach your children. The earlier you show them the value of saving money, the faster they can adopt the habit in their own lives.

However, the challenge comes when parents find themselves confused and even afraid to start with the early finance lessons for their kids. Some parents are afraid to open their children’s minds to money right away. Some just don’t know how to effectively share the lesson. And some simply don’t know how to save to begin with.

To keep everything as simple as possible, here are three basic tips on how you can teach your children the value of saving.

Show by Example

The young ones follow what the adult does. It’s in your child’s nature. Whatever they see and hear, they imitate. That is why it is important for you to be mindful of what they watch on TV and on the internet. As much as you can, make sure you are with them when they watch so that they can learn from you first and foremost. 

Since you want to teach your kids how to save, it is a given that you should also make it to a point to save. It is important that you show them how you allot a few dollars every week for important things like your emergency funds, your term insurance, or even your annual family getaway. At the end of the day, you are the role model. Make sure you become a role model worth emulating.


What you can do is start off small. Use a coin bank or the good ol’ piggy bank to show them that you are actually saving. It’s probably a little early at this stage to lay out the banking system to them. Instead, show them the basic concept of saving: keep the extra money in a safe place and use it when you really really need to.

Be Consistent

What you really want is to create a financially healthy habit that is worthy of keeping for themselves.

At this early stage in their lives, they are highly impressionable. Once they pick up something, no matter who it’s from, they are bound to repeat it over and over. If it is something that you feel that they should not keep, make sure to catch it and teach them an alternative. If it is something worth emulating, you should enforce the lesson and let them keep it.

With saving, help them retain the lesson by making your money lessons organized. You can teach them through codes that work for them. Teach them basic math as needed. Create a structure that supports the goal of honing a good habit that they can use into adulthood. 

A good structure you can introduce is creating a schedule. For example, you can instruct them to drop a quarter every day before dinner. This creates a system that allows them to associate the time just before dinner as their personal time to focus on saving.

Make it Fun

The idea of saving should come across as something fun for your kids. Whenever they drop a quarter in their piggy bank, find a way to incorporate it in their play time so that they can see the value of what they’re doing with a higher sense of clarity and excitement. Relating it to something they cherish the most makes them accept the responsibility faster and more effectively.


As a child, they will always want you to validate their actions. They want to show mommy and daddy that they are following the system. As much as you can, always be there whenever they do something related to saving. It instills the importance of what they are doing, and you being there is an extremely valuable support to their actions.

Furthermore, to make the lesson stick, they should know why they need to save in the first place. Show them what they can get out of the money they have saved within a set period of time. Use their savings for fun things like getting their favorite ice cream or shopping for toys. This further establishes a valuable lesson that they can carry until their adulthood.

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