How to save money for kids at every age (and get them involved)

Saving money isn’t just a grown-up skill. Whether your child is 5 or 15, learning how to save helps build lifelong financial confidence. The earlier they start, the more they can benefit from smart habits—and the more involved they are, the more likely those habits will stick.

Ready to help your kids save for their future? We’ve rounded up 15 proven, practical ways to teach kids to save money, with ideas for every age, personality, and family routine.

15 smart ways to save money for kids

1. Use a piggy bank

Piggy banks are cute, and they also provide young kids a hands-on way to understand saving. Kids can physically see their money grow each time they drop in a coin, which builds positive reinforcement. Start by encouraging them to save loose change or birthday money.

When they get excited about filling the bank, take it a step further: empty it together and count the savings. Use that as a moment to talk about their goals or what they’re working toward.

Pros: Helps young kids visualize saving and feel proud as they see their money pile up. Cons: Doesn’t grow interest or scale well beyond coins and small bills.

2. Set up savings goals

When kids know why they’re saving, it becomes easier to stick with it. Help your child define a short-term goal (like a toy) and a long-term one (like a new bike or experience). Then, break it down: How much do they need to save each week? How long will it take?

Using a goal as a reference point gives their saving efforts meaning. Even better if you revisit that goal regularly, adjusting as they earn and save.

Pros: Gives kids a clear purpose for saving and encourages long-term thinking. Cons: May require ongoing tracking and motivation from parents.

3. Offer Parent-Paid Interest

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One of the best ways to teach compound interest is to reward it directly. With Greenlight, you can offer Parent-Paid Interest, meaning you choose a rate and pay kids interest each month based on how much they save. It mimics the real-world concept of compounding, but with a family-friendly twist.

When kids see that their savings grow just by staying saved, it reinforces the benefits of patience and delayed gratification.

Pros: Shows kids the benefit of compounding and rewards saving over time. Cons: Requires parents to contribute interest regularly, which takes commitment.

4. Match their savings

A matching plan is another powerful motivator. If your child saves $5, you match it with $5 (or any percentage you choose). It’s an incentive that not only boosts their total but shows them you value their saving efforts.

Be sure to talk about the “match rules”: How often will you match? Is there a cap? Consistency builds trust, and even small matches can create momentum.

Pros: Motivates kids to save more by reinforcing their efforts with tangible rewards. Cons: Needs consistency and clear rules to be effective.

5. Open a youth savings account

Opening a real savings account gives older kids a sense of responsibility. Many banks offer youth savings accounts with no fees and online access. Walk them through how to make deposits, check balances, and track interest earned.

Use monthly statements as teaching tools: Highlight where the balance increased, discuss any withdrawals, and celebrate milestones.

Pros: Introduces kids to real banking tools and builds financial responsibility. Cons: May be less interactive or engaging than app-based alternatives.

6. Use visual progress charts

Some kids are more motivated when they can see their progress. A simple thermometer chart, sticker tracker, or colored jar can make saving exciting. Every time they add money, they get to update the chart.

This makes saving more interactive and celebratory. Try taping the chart to their bedroom door to keep it top of mind.

Pros: Makes saving feel real and rewarding for visual learners and younger kids. Cons: Requires manual updates and effort to maintain excitement.

7. Gamify saving with challenges

Make saving a game by using family challenges or short-term goals. Try a no-spend week, a money-saving challenge, or our no-spend challenge. These creative activities can help kids discover just how much they can save in a week.

Tie in small rewards or family shoutouts to keep things fun. These games build healthy habits, and a little friendly competition never hurts.

Pros: Makes saving fun and motivating with short-term goals or friendly competition. Cons: May require creativity and adult support to manage fairly.

8. Help them earn money

Saving is easier when there’s money to save. Give your child opportunities to earn through chores, helping neighbors, or selling handmade crafts. Let them choose what they want to save and spend.

Greenlight’s Chores and Allowance feature makes it easy to assign tasks, track completion, and automate payouts.

Pros: Teaches kids the connection between work, income, and saving goals. Cons: Younger kids may need help identifying or completing paid tasks.

9. Teach wants vs. needs

Teaching kids the difference between wants and needs can shape how they decide to save. Wants are things they can live without (like a new toy), while needs are essentials (like school supplies). When kids understand this distinction, they can start making smarter saving decisions.

Before spending, encourage your child to ask: "Do I really need this, or do I want it?" This mindset helps prioritize saving for what matters most. Over time, your child will begin to assess value and make informed choices.

Pros: Helps kids think before spending and decide what to save for. Cons: Can take time for kids to fully grasp the difference.

10. Encourage giving and budgeting

Saving doesn’t happen by accident. When kids use a simple system like Save, Spend, and Give, they learn to pause and plan where their money goes. That structure naturally supports saving by reinforcing that not every dollar is meant to be spent.

Giving also teaches delayed gratification. When kids set money aside for others, they’re learning to part with money thoughtfully, a skill that makes saving feel more purposeful and rewarding. Let them choose where to give, such as a charity they care about or a friend in need. It helps them see that money isn’t just about them.

Pros: Teaches kids how to plan their money instead of spending impulsively. Cons: Takes regular effort to build strong habits.

11. Use cash back savings

Cash back savings can be a powerful motivator. With Greenlight, kids can earn up to 1% cash back* on purchases—then, they can move that over into their savings if they choose. It flips the script: Instead of spending every last dollar, they start looking for ways to keep more.

This feature is especially useful for kids who use their card often. Over time, they learn that building the discipline of saving can be rewarding.

Pros: Encourages kids to build a habit of saving right after spending. Cons: Works best when kids are regularly making purchases.

12. Lead by example

Kids learn by watching. If they see you save for big purchases, skip impulse buys, or talk through financial goals, they’ll absorb those habits naturally. It becomes part of the family culture.

You don’t have to share your full budget. Just saying things like, “We’re saving up for a trip” or “Let’s wait and buy this next month” can reinforce the value of saving over time.

Pros: Shows kids that saving is a normal, everyday habit worth prioritizing. Cons: Requires parents to be open about their own financial behavior.

13. Introduce interest concepts

Interest can seem abstract, but it’s a huge motivator once it clicks. Start with simple numbers: If your child saves $100 and earns 6% interest, they’ll have $106 after a year. Now imagine that interest compounding year after year.

Pros: Helps kids see how saving money can grow passively over time. Cons: Younger kids may need repeated examples to understand the concept.

14. Explore investing together

Once your child has saving down, investing is the next big step. It teaches them how to grow their money over time, evaluate risk, and understand the power of patience. Start with simple terms like stocks and ETFs, and talk about the companies they already know.

Pros: Gives kids early exposure to long-term financial growth strategies. Cons: Requires parent involvement to guide decisions and manage risk.

Smart habits and the right tools

Every kid can learn to save. Whether you’re starting with a piggy bank or teaching about compound interest, the goal is the same: helping them build habits that last.

With Greenlight, kids and teens can learn how to spend—and save—money wisely, with tools for learning to invest, educational games, savings goals, chore and allowance tracking, and more. It’s a win-win for busy families and growing kids alike.

FAQs

What's the recommended age to start teaching kids about saving money?

There’s no perfect age, but even preschoolers can begin with a piggy bank. As kids get older, you can introduce more advanced tools and lessons.

How much money should I put into my child's savings each month?

It depends on your family’s budget. Some families match what their child saves, while others set up a fixed monthly contribution. The key is consistency.

Will money saved in my child's name affect their financial aid for college?

Sometimes. Savings held in a child's name can impact financial aid eligibility more than money in a parent’s name. Talk with a financial advisor to plan accordingly.

Teach smart saving habits. From rounding up purchases to setting savings goals — Greenlight's award-winning money app helps families save. Try Greenlight, one month, risk-free.†

This blog post is provided "as is" and should not be relied upon as a substitute for professional advice. Some content in this post may have been created using artificial intelligence; however, every blog post is reviewed by at least two human editors.

*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.