Beyond the Piggy Bank: Teaching Children and Teens to Save with Purpose
Each April, National Teach Children to Save Day serves as a reminder of the importance of instilling good savings habits in children and teens. Sponsored by the American Bankers Association since 1997, this initiative highlights the lifelong benefits of saving money and financial literacy. But in a world where digital payments, in-app purchases, and instant gratification dominate, traditional savings lessons need a modern upgrade.
So, how can you make saving money fun for kids? Rather than just telling kids to "save money," what if we taught them why saving matters? The key to making savings stick is linking it to a purpose that resonates with them. Instead of just dropping coins into a piggy bank, children and teens should understand that saving is a tool for reaching their dreams, creating opportunities, and even helping others.
Why Should Children and Teens Want to Save?
Children and teens are more likely to develop a savings habit when they see its purpose. Drive home the powerful lesson of why kids should learn to save money early. Connect their savings to a meaningful life event happening now or in the near future. These practical savings lessons for children and teens can be powerful tools for helping children and teens grasp the importance of savings and how it applies to real life:
Saving Prepares You for Big Life Events – College, buying a car, a wedding, and even purchasing a home all require significant financial preparation. Teaching kids early on that saving helps them afford these milestones can inspire them to start now.
Saving Gives You Financial Freedom – When you save, you have choices. You can buy things you want, give to causes you care about, and plan for experiences without always depending on someone else.
Savings Can Earn You Money – Teach kids that their money can grow over time through interest. When they put money in a savings account, the bank pays them for keeping it there. Over time, interest compounds, helping their savings grow without them working for it.
Emergency Savings: Preparing for the Unexpected
One of the most important lessons in financial literacy is understanding the need for an emergency fund. Explain that life sometimes throws surprises—like a broken phone, an unexpected school trip, or even family emergencies. Having savings set aside prevents stress and allows them to handle these situations without borrowing money or missing out on important opportunities.
Setting Savings Goals: The Power of Planning
Savings become more exciting when kids have a goal in mind. Help them set short-term and long-term goals, such as:
Short-term: Saving for a new bike, a concert ticket, or a video game.
Long-term: Contributing to their future car, college fund, or even a dream vacation.
Encourage kids to track their progress, celebrate small milestones, and adjust their savings plans as needed.
Three Ways to Give Saving a Purpose
Saving for an Experience, Not Just Stuff
Instead of focusing solely on buying toys or the latest gadget, encourage kids to save for experiences—like a special family outing, a trip to an amusement park, or a summer camp. When kids see their savings turn into memorable adventures, they associate money with possibilities rather than just purchases.The Give-Save-Spend System
A simple yet powerful approach to financial literacy is the "Give-Save-Spend" method. Have kids divide any money they receive—whether from allowances, gifts, or small jobs—into three categories:Give: A portion goes toward helping others (a charity, church, or a cause they care about).
Save: Money set aside for a future goal (something meaningful to them).
Spend: The rest can be used for something they want now. This system teaches not only saving but also generosity and mindful spending.
Earning to Save
Kids learn best through action. Instead of just handing them money to save, let them earn it first. Whether through simple household chores, selling handmade crafts, or helping neighbors, earning money creates a sense of ownership. When children work for their money, they value it more and become more thoughtful about how they use it.
The Value of Visiting a Local Bank
Take your child to a nearby bank to talk to a banker about how savings accounts work. Many banks offer kid-friendly programs that explain interest, savings goals, and how money grows. Comparing a beginning-of-year bank statement to a year-end statement is a great way to show how money increases over time—especially if they’ve left it untouched and let interest accumulate.
Budgeting: A Key to Saving More
Budgeting isn’t just for adults—it’s a valuable tool for kids, too! Teaching children to budget helps them: ✔ Track their money so they know where it’s going. ✔ Plan their spending so they don’t run out of money before reaching a savings goal. ✔ Save more effectively by setting aside a portion of their allowance, birthday money, or earnings before they spend.
Introduce simple budgeting tools, such as the Give-Save-Spend method, or use a visual savings chart to make budgeting fun and interactive.
The importance of building a savings habit at a young age cannot be overstated. Teach your children and teens today How Saving Money Can Transform Your Life.
The Bottom Line on Making Saving a Lifelong Habit
Teaching kids and teens to save with purpose isn’t just about filling a piggy bank—it’s about equipping them with skills that will serve them for a lifetime. When they learn to set goals, budget wisely, and connect saving to meaningful experiences, they gain the confidence to make sound financial decisions. By fostering these habits early, we help them build a future where financial stability, independence, and generosity are second nature.
This April, and every day, let's move beyond the piggy bank and give young savers the tools they need to thrive. After all, the best financial lessons aren’t just about money—they’re about creating opportunities, achieving dreams, and securing a brighter future.
Smart Money Changes Everything is a financial education blog and website. The information presented in this post is solely for your general financial education and is not to be considered financial advice. Always check with your trusted financial professionals who will consider your unique situation and goals to develop your personalized comprehensive plan.
