Money wasn’t always an open topic at the dinner table. In fact, a recent survey by NerdWallet and The Harris Pollfound that 20% of baby boomer parents (ages 61–79) never taught their kids about saving money.
But today’s parents are changing the narrative. According to the same survey, 93% of parents with children under 18have taken steps to teach their kids about saving — from setting savings goals to opening dedicated accounts.
If you’re a parent looking to raise financially savvy kids, here are some practical, age-appropriate strategies to help them build good saving habits from the start.
1. Start With the Right Savings Tools for Their Age
Teaching kids about saving doesn’t have to be complicated. It can start with a simple piggy bank or savings jar, which allows younger children to visually track their progress and learn the basics of money — like identifying coins and bills, or counting up to a goal.
Once they’ve grasped those fundamentals, consider opening a savings account in your child’s name. According to the survey, 41% of parents have done just that.
Most banks allow joint accounts between a parent and minor. You’ll likely need:
-
Your photo ID and personal details
-
Your child’s name, birth date, and Social Security number
When choosing a bank, look for an account that:
-
Charges no monthly fees
-
Offers a competitive interest rate
-
Allows parental access and controls
Some accounts must be opened in person, especially for minors, so call ahead. Online banks may offer convenience and higher interest, but traditional banks can provide in-person support.
Don’t Forget About Banking Apps for Kids
Modern money apps geared toward children often include interactive features like:
-
Savings goals
-
Allowance tracking
-
Financial literacy games
-
Parental controls
Just note: some of these apps charge a monthly fee and may not pay interest, so weigh the value of their features against the cost.
2. Give an Allowance — and Teach Saving Rules
An allowance is a great way to introduce real-world money decisions. According to the survey, 40% of parents use allowances as a teaching tool for saving.
Whether the allowance is tied to chores or simply given weekly, it creates opportunities to teach kids how to balance priorities:
-
Save
-
Spend
-
Give
Nearly one-third of parents (31%) say they require their kids to save part of any money they receive. You can create guidelines (e.g., 50% to savings, 40% to spending, 10% to giving), or let your child decide how to split their money — then have regular conversations about those choices.
This practice helps kids start thinking about needs vs. wants and introduces them to the value of planning ahead.
3. Talk About Your Own Financial Goals — and Theirs
While many parents teach by example, only 37% have actually discussed family finances with their kids, according to the survey. And that’s a missed opportunity.
Without overwhelming them with financial stress, you can still share age-appropriate money goals, such as:
-
Saving for a family vacation
-
Building an emergency fund
-
Contributing to retirement
Tell your kids why you’ve set these goals and how you’re working toward them. Then, encourage them to come up with their own.
For younger kids, goals might include:
-
Saving for a toy
-
Donating to a cause
-
Learning to identify and count money
Let’s say your child wants a toy that costs $30. If they earn a $5 weekly allowance, you can help them set a plan: save for seven weeks, including sales tax. (Bonus: it’s the perfect chance to teach them how sales tax works!)
Whether they love the toy or regret the purchase, there’s a lesson in either outcome — which brings us to an underrated strategy…
Bonus Tip: Let Kids Make Small Spending Mistakes
You may want to steer your child away from spending money on things you know won’t hold up — a flimsy toy, a trendy item they’ll forget in a week — but sometimes the best teacher is experience.
Unless a purchase is inappropriate or unsafe, it’s OK to let kids buy something they may later regret. This introduces the concept of buyer’s remorse and sets the stage for valuable discussions:
-
“Was it worth the money?”
-
“Would you choose differently next time?”
-
“What did you learn?”
It’s also a good time to explain return policies, product quality, and smart shopping strategies.
Small financial mistakes today can lead to better spending decisions later, when the stakes (and the price tags) are much higher.
Final Thoughts: Build Habits, Not Just Savings
Saving money is more than a skill — it’s a mindset. Whether it starts with coins in a jar or a first bank account, the goal is to build lifelong money habits that grow as your child does.
Talk openly, encourage questions, and be patient. Like any life lesson, teaching kids about money takes time — but the payoff is well worth it.
Survey Methodology
This survey was conducted online in the U.S. by The Harris Poll on behalf of NerdWallet from March 4–6, 2025, among 2,046 U.S. adults aged 18 and older, including 580 parents of children under 18. The margin of error is ±2.5 percentage points with 95% confidence.
Looking for more tips on raising financially smart kids?
➡️ Explore more family finance advice at Creditvana.com.
