From save spend share method to smarter spending: Next-level tips for families
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As a responsible parent, you want to teach kids good money habits. You know those habits will help them be more financially healthy as adults, but you also want them to experience the joy of being a kid and having pocket money.
Good news — there's a fun, effective, and kid-friendly way to strike that balance. It's called "save, spend, share," and we break it down below.
What is the save, spend, share method?
"Save, spend, share" is a simple, developmentally adaptable budgeting system that teaches kids money management. The concept is simple: When you have money, you can put it into one of three core buckets: Saving, spending, and sharing.
Kids use the "save" bucket to put money aside for later. The "spend" bucket is for things they want to buy right now, such as a birthday present for a friend or a special treat for themselves. The "share" bucket is for donations.
Why it works: Building financial habits early
Be a financially smart family!
Families and educators love this method because it's realistic, concrete, and easy for kids to understand. It works well from a cognitive development standpoint because it turns the concept of "saving some and spending some" into a hands-on activity, which is how young kids learn best.
Kids learn to think more carefully about their money and plan for the future. And as they grow, the method grows with them.
How to use the save, spend, share method at home with kids
There are "save, spend, share" classroom activities for kids as young as first grade, but the method works just as well at home. It's beautifully adaptable, allowing you to tailor it to your kids' needs.
Keep it real: When starting out, use physical objects for the three "buckets." Mason jars, envelopes, or a homemade save-spend-share piggy bank can all work well. Older kids can use printable or digital trackers like Greenlight, the #1 family finance and safety app.
Keep it consistent: Help kids avoid the temptation to spend more by setting a standard allowance split. A good starting point is to save 25%, spend 70%, and share 5%. You can always change it based on what works for your family.
Keep it going: Create family money routines around spend, save, share decisions. For example, you might schedule a time every Sunday to develop spending strategies. Each child can decide where they want their spending money to go for that week.
When your kids are old enough, you can use these weekly meetings to work on a family spending plan. Talk about monthly expenses and credit cards, and why it's important to control what you charge. With older kids and teens, you can even start talking about your retirement savings and how interest grows over time.
3 common challenges families face with this method
The save, spend, share method may require some adjusting, and that's okay. Many families deal with:
Delayed gratification frustration: Some kids struggle with having money they can't spend. If they're having trouble, help them pick something to save for, and talk about how much they'll save each week to get it.
Coping with temptation: Many kids resist having consistent save, spend, and share percentages, especially when they want to buy something above their spending budget. As the parent, you get to decide how much flexibility to build in and when to have a teachable moment about saving.
Balancing guidance and autonomy: For the system to work, kids need decision-making power. It's important to give them some freedom in what to buy and where to donate, within safety parameters.
Watch your child's responses and think about when they need more guidance and structure, versus when they're ready for more freedom.
When it's time to level up: Signs your child is ready
As your kids grow, they'll eventually be ready for a higher-level budgeting system. That's when you can transition from the traditional save, spend, share method to a more digitally based budgeting system. Look for these "green flags:"
They want more money independence: Your kids may be ready for a more advanced system, like Greenlight, if they're asking for more freedom about how much they spend, save, and share.
Their purchases get more expensive or long-lasting: If they're suddenly more interested in AirPods and Uggs than Minecraft coins and ice cream, they'll need more monthly savings. They'll also need to organize those savings, which requires more advanced tools.
They're ready to understand digital spending and saving: As kids develop the ability to think abstractly, usually starting around age 12, they can start managing their money digitally with an app like Greenlight.
Some kids will ask directly for banking apps and other adult-focused financial tools. Others will start paying more attention to how you manage money. Use those "ready" moments to take the next step.
Turning everyday moments into teachable money lessons
You can use the "save, spend, share" to navigate everyday money decisions with your kids. As soon as you launch the method at home, your kids can start using their "spend" money for real purchases, like a candy bar at the grocery store register or a souvenir on a field trip.
When they ask for something bigger, strategize with them about how to save more money. Work out how long it would take to save for something with their current percentages versus if they spent less and saved more.
If they're ready, you can also talk to them about family money decisions. Involve them in grocery budgeting or charitable giving choices. If you're saving for something as a family, such as a vacation or a pool, choose some fun money-saving challenges for families to do together.
Transitioning from jars to digital tools, without losing the magic
Graduating to the more "grown-up" version of something is always exciting for kids, especially when it feels like a natural next step. When moving from physical jars or envelopes to digital tools for your kids to save, spend, and share, find ways to mirror the old system.
💸 Leverage money-saving apps like Greenlight, the #1 family finance and safety app, to help your kids track their spending habits and see their progress toward financial goals. You can even celebrate their financial wins with e-gift cards and other digital rewards.
How Greenlight makes save, spend, share smarter
As a parent raising money-smart kids, you can use the Greenlight app to set up a dynamic save, spend, share system for your older kids and teens. Greenlight makes it easy for kids to build their savings accounts, establish smart savings goals, and choose investments to help their money grow.
And, kids can earn up to 6% back on savings when using Greenlight, meaning responsible money decisions have never been more rewarding.* Learn more about cash back savings ** and start those smart habits today.
Want to budget as a family? Teach your kids essential budgeting skills with Greenlight’s award-winning educational money app. Try Greenlight, one month, risk-free.†
* Greenlight Core families can earn 2% per annum, Greenlight Max families can earn 3% per annum, Greenlight Infinity families can earn 5% per annum, and Greenlight Family Shield families can earn 6% per annum on an average daily savings balance of up to $5,000 per family. To qualify, the Primary Account must be in Good Standing and have a verified ACH funding account. See Greenlight Terms of Service for details. Subject to change at any time.
**Greenlight Max, Infinity, and Family Shield families can earn 1% cash back on spending monthly. To qualify, the Primary Account must be in Good Standing and have a verified ACH funding account. See Greenlight Terms of Service for details. Subject to change at any time.
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