Teaching Kids To Save

Teaching Kids To Save By Setting Goals

My kids love to spend money. More importantly they love to spend my money. Money management is a skill that is definitely high on our list of priorities. I believe teaching my kids about saving is an essential life skill that should be taught as early as possible.

Recently my 11-year-old announced that he was getting a car when he turned 17. Really? Intrigued, I asked him how he planned on getting said car and he replied that he was going to save up for it.

Of course, this was the perfect opportunity to give an impromptu savings lesson. I wanted to make sure he realized it was going to take more than a jar full of pennies to buy a car.

This coming from the kid that believes $1 will by him every video game on his wish list?!?

Our Car Savings Matching Agreement

I’ve agreed to go half on a car with my 11-year-old. Yes – you read that correctly. I’ve agreed to match each full dollar he saves from now until his 17th birthday in his car fund.

I did this for a few reasons. I wanted him to know that I took his goal seriously and would support him 100%. I, also, wanted to give him an incentive save. Similar to company-matching with our 401(k) accounts, most people are more likely to contribute if their employer is meeting them half-way.

With 6.5 years to go for his car purchase, do I think he’ll stick with this savings plan? Who knows? He may stop and start. He may just stop. He might surprise the nothing out of me and consistently save and end up with a sweet car once he turns 17. I’m ecstatic that he’s set a savings goal and is excited about working towards it.

Teaching My Kids About Savings | Divas With A Purpose #BudgetingDivas

How We’re Saving for My Son’s First Car

Typically this is the reaction I get when we start talking money and savings. Once we set a specific goal, both my boys got extremely excited and invested with the savings plan. (I feel for my 4-year-old, when he realizes that he won’t actually be able to drive the car!)

We’ve had savings goal previously for video games, trips to amusement parks, and pizza meals. I really have no idea why this sparked his interest so much more than the other items. The key is finding what makes kids want to save and zoning in on it. Make saving money fun!

Rather than dump all his money into a savings account, we came up with a budget and allocated a certain percentage towards his savings account.  He still has to maintain his monthly household contribution. Yes, I make my child pay a bill. He just had to use a video game rental service about 6 months ago when one of his friends started using it. I agreed with one condition – he had to pay the monthly service charge for it. If I don’t receive the money prior to the due date, it gets cancelled for that month. I’m teaching him accountability and responsibility early on.

He’s, also, working on a solicitation letter for family and friends to ask for donations and offer his services for a reasonable fee.

I’m leading by example. I’m open with my savings goals. My children see that I don’t purchase things on a whim. They are aware of items that are on my wish list and my target purchase time frame.

I encourage him to give. I’m a huge believer that by helping others you open the door to receive more and be blessed in other ways that are often more valuable than dollars and cents.

I’ll keep you all posted from time-to-time on how he’s doing with his savings.

How do you encourage saving money with your children?

Blogger Support:



  1. says

    Kudos to you for teaching your children valuable financial lessons while they are young. Hopefully this will protect them from financial heartbreak later on. And making them pay a bill? Brilliant!

    • says

      Thanks so much! Believe it or not, I got some not-so-nice comments from a few friends for making him pay that expense himself. I see so many children AND adults who just do not value the worth of a dollar. I’m really trying to raise up financially savvy children so they don’t make the same whoopsies that I did and save us all some heartache and dollars in the long run.

  2. Hanifah Munadi says

    I oh so believe in teaching money management and the development of creative skills at a very young age. In this day and time, I feel that both are crucial because of the economic woes. Excellent information and topic of discussion. Thanks for sharing.

  3. says

    I like your savings plan. I encourage my children to save by telling them it is good to wait and rewarding them for saving for items by matching their efforts. It is important to teach children to manage money at a young age.

  4. says

    I love love LOVE this! My son is 7 and constantly asked for this new game and that new game. We’ve been telling him the whole “be good and get an allowance” idea, but I think explaining bills to him would be a better bet. We’ve already had a savings talk(and blog post), and he’s been doing well with that.

  5. says

    Seeing as my little one is just a toddler, she’s encouraged to save simply by allowing her to put all of her coins in the piggy bank. Works like a charm! #sitssharefest

    • says

      Time flies so quickly :) I tried to start money talks around 2-3 years old when they first expressed interest in collecting coins. Glad to have you along for the journey :)

  6. says

    I am very impressed with your son’s savings goal! You are providing him with an invaluable skill that unfortunately I am sure many children don’t learn. I don’t have children of my own yet, but I hope to instill in them this important life skill when I do (and am so thankful that my parents did it for me). Happy Sharefest!

    • says

      Happy Sharefest! Thank you for the kind words. I’m hoping to teach him the lessons I learned the hard way at an earlier age. It’ll save us both tons of heartache and money in the long run.

    • says

      Thanks! I definitely agree. The earlier we teach them to appreciate the value of money and instill in them savings and budgeting techniques – the more likely those ideals will stick!

  7. says

    My son has a atm machine that is actually real he has a card for it and everything. He is only allowed to swipe his card after all his chores for the week are done. I put all my lose change in the atm and some dollars. He normally can take out 10 bucks a month to buy what he wants but I teach him to make smart decisions with his money. He quickly sees that 10 bucks does not buy him much so he saves it.


Your Comments Are Welcome!