How to Teach Your Kids about Saving and Spending

If you are a successful person, chances are you got those skills that led to your success when you were a kid. It could be a passion for coding programs, acting, entrepreneurship, or even singing. That means that if you want your kids to have great financial skills and habits such as saving, then you have to start teaching them about it when they are still kids. However, you cannot do it the same way for kids of all ages. You need to find a strategy that works for a kid of a certain age group. In this guide, we are going to discuss some of the best ways to teach kids about saving and spending.

1. Elementary-Aged Kids

If you have elementary aged kids, you should be talking to them about money management. However, you should not be too technical about it, simply teach them the basics. Start with simple something as simple as money identification. While kids can learn about something by listening to you, you can teach them a lot more by letting them do money related stuff. Kids enjoy learning that way. In the next section, we are going to look at list of some of the stuff your kids can do.

  • Needs versus Wants

Help your child to create two lists. The first list should have the things they need. The second list should have items they want, and therefore should save for those.

  • Weekly Allowance

Give your kids a weekly allowance and let them know they can use or save it.

  • Saving and Spending Choices

Teach your kids about saving and spending choices by providing them with two jars for storing money they own. One jar should be for saving while the second should be for spending.

  • Use Cash

Elementary children cannot understand the concept of credit. You should therefore teach them about cash by shopping with them, and paying with cash.

  • Methods of Saving

Saving does not just involve putting money away, you can also get them to help you with cutting coupons. You may also put them in charge of turning off lights in their bedroom to save energy and therefore lower the energy bills.

2. Middle School Preteens

At this age, children tend to be conscious of what their peers own, especially items such as tech gadgets and clothing brands. It is therefore important that you help them understand the importance of foregoing such items and instead the save the money for important items. You can also start by exposing them to more complicated financial management terms as discussed below.

  • Give them a Demo

The best way to get preteen to understand the more advanced saving ideas is to explain to them what you are doing to chive your financial goals. You can then celebrate with them when you achieve by maybe having a family vacation of nice dinner.

  • Budgeting

When the time comes to do back-to-school shopping, you should be clear on how much you are willing to spend and what your preteen should do to help you make savings.

  • Concept of Earning

Your middle school child should learn about earning money for savings. Some of the jobs you may introduce them to include lawn mowing and babysitting.

  • Advanced Money Topics

You should also introduce your preteen to important topics such as use of credit and debit cards. Do not forget to teach them about earning or paying interest and the stock market. Moreover, you should show them how to write and deposit a check.

  • Give the Practical Lessons

Your preteen will learn faster and hold onto what you teach them if they can see some benefits to it. You can therefore encourage them to save, and pay them some interest on whatever they have saved.

3. High Schoolers

By the time your kids get to high school, they have already learned enough basics from you to exercise some level of financial responsibility. You should therefore trust them and help them to become financially independent.

  • Saving Account

You should help your teen to open a savings account and then let them be the ones to check and manage payments.

  • Mistakes

Any mistake they do such as an overdraft is a learning moment. Use it to teach them why it is wrong and how they can avoid it in future.

4. College Education

College education is not only expensive, but it will also be your child’s responsibility to pay for it. Talk to them about it, as well as other expenses they may incur while at college such as dining out, social activities, organization expenses, and any other loans they will have to repay after college.


Overall, you should encourage your children to spend time learning about different businesses and how they rose to become market leaders. With time, they will love the idea of making smart financial decisions. You can then release them from their nest, knowing you have done the best for them.