Fun Ways To Encourage Kids To Save Money
Ways for parents or grown ups to approach Saving with discussion, a printable money savings challenge, and more
“He who buys what he does not need, steals from himself.”
– Swedish Proverb
Teaching our kids the underlying behavior of consistently saving money we would argue is just as important as teaching the act of actually saving money itself.
The reason for this is that mastering the behavior behind saving money means you have mastered the ability to wait for things that you want right now.
If we can truly teach our kids to learn to wait for something instead of needing to have it right away, this behavior can help shape how they not only think about money but how they also think about many aspects of their life as they grow up.
For example, if they want to be a great teacher as their profession one day, well this will take time, practice, and the ability to wait as they hone their craft. If they want to build a strong relationship with someone when they are older, it will also take similar behavioral traits.
Regardless of the application, this idea of “learning to wait” (or “deferred gratification”) will serve they in so many areas of life as they grow.
And when it comes to teaching them deferred gratification, we can use the concept saving money as one of the ways to do it.
So then how do we teach saving?
Well first of all, as we always say here at Future Funders we have no monopoly on knowledge, so if you have found a great way to do this, stick with it (and please share it with us below in the comments section, shoot us a note here.
But if you are looking for some fun and creative ways to get started, we have 10 suggestions below (along with a printable money savings challenge at the bottom) that we hope you find useful.
The “Marshmallow” Test
The Marshmallow test was a study on delayed gratification in 1972 led by psychologist Walter Mischel, a professor at Stanford University. In the study, a child was offered a choice between one small immediate reward, or two small rewards if they waited for a period of time. If they chose to wait, the researcher would then leave the room for about 15 minutes and then returned. The child was then given a reward, either a marshmallow or pretzel stick, depending on the child's preference.
In follow-up studies, the researchers found that children who were able to wait longer for the preferred rewards tended to have better life outcomes (as measured by SAT Scores, educational achievement, body mass index, and other life measures). There have been numerous attempts to re-enact this study since with similar outcomes.
As we mentioned above, deferred gratification can be a foundation for learning the money principle of saving and we can play this type of game with our kids all the time to encourage them to learn the behavior of waiting for something they want.
For example, if you are shopping and they tag along, maybe offer them the chance for a small treat at the beginning of the trip or two small treats at the end of the trip if they wait. Or if you are having dessert after dinner, offer them the chance to have a bit more if they wait for a period of time. There are lots of little ways to apply this study as you move though the day with the kids!
Wants vs. Needs
Our kids sometimes make it seem like what they want is absolutely necessary in the moment. However, learning to save money means learning how to put off some of the things we may want right now.
Understanding what we truly need versus what we want is a key to unlocking the life we want to live as well as learning how to master this behavior effectively around money. Teaching the concept of Wants vs. Needs early will help our kids focus on what truly matters to them while also setting a foundation for learning how to save money effectively.
As a fun little exercise you can do together, grab a stack of magazines or advertisement flyers from the newspaper, and use the free printable download here (if you don’t have magazines or paper you can do this exercise on the computer taking pictures off of websites like pexels or unsplash).
Ask your kid to cut out items or help them put pictures into each category, and talk about what they've chosen. You can do the activity with them and talk to them about differences in things you want (ie. Ice cream) and need (i.e. paying the electricity bill) as a way to encourage behavior that will encourage waiting and patience.
Family Goal
A family goal is a great way to teach saving, patience, and get the whole family involved. Sit down with your kid and plan a goal together (going out to eat, going on a vacation, etc) and talk to them about a plan to get there (check out our savings challenge printable at the bottom).
You can make a poster board or use a sheet of paper or some other way to track progress (we have a sheet at the bottom) possibly even putting it in the kitchen or somewhere for the whole family to see. We would try to make it a goal that will take at least a few days but nothing that will take more than a month or two to achieve as they may lose interest.
If you feel your kid is old enough and is earning money or an allowance, have them participate in the savings goal as well. This can also be a way to encourage them to work harder or be more creative around earning money to reach the family goal faster (for a free handy guide on 15 ways your kids can earn money check out our guides and tools page)
Shopping
Shopping can be a great way to teach the concept of saving with your kids while also turning it into a game. Before you go, sit down with them and make a list or show them the list you have already made. Explain to them how much you are looking to spend as a whole or if your list is long, you can perform this exercise on certain categories of items you need (i.e. cereal and milk).
Next, give them a job and its their turn to perform. When they are in the store, their job is to locate the items you assign them to and find the best savings opportunities for each item.
When they locate an item you need (like cereal), have them study how much different brands cost and see which ways offer the best way to save money (for example, the branded products will typically cost more than the store brand).
While they are doing this, for any products you accept, have them keep a notepad or remember how much they are saving the family. At the end of the trip you can give them a reward for their hard work by offering to buy them something they would like with total amount they are able to save (or double the amount they save, you can decide the fomula).
As you are doing this and once they have completed their mission, remember to talk to them about the importance of saving and how it applies to real life. After all, if they do it correctly they can potentially get something they want with the savings they find!
Take Them To The Bank
The next time you go to the bank this could be a great time to bring along your kiddos and teach them about saving. When you are on your way, explain to them what a bank does and how you use it (for some help check this out).
When you are at the bank, explain as you are making the transaction so that they can see you engaging with the teller. You can also ask the teller if they can explain how you save money in the bank to your kid (sometimes as we know our kids listen better when the message isn’t coming from us!).
Be sure to keep the conversation going here and when you are at home or doing things with your kid and you think about saving money or needing to visit the bank, feel free to talk aloud so that they continually hear the message of saving and how important it is.
Piggy Banks
Piggy banks are a fun way to encourage kids to save and there are a lot of fun options out there especially if your kids are starting to earn an allowance.
In terms of choosing the right piggy bank to teach saving all else equal, we would recommend trying to find one where they can physically see the money pile up over time (i.e. something more clear) as well as something where money can be taken in and out (there are a lot of piggy banks out there which are locked once you put money in).
For added ways to use a piggy bank to encourage saving you can play a game. As a parent if you kid decides to save a certain amount of money vs. spend it, you can tell them you will add more money to their piggy bank as a reward (you pick the amount you find reasonable).
Should you want to start teaching them about investing (we will write more about this), you can also offer them the chance to “invest” some of their piggy bank money with you for a period (day, week, try to keep at a month max) and in return you will pay them back their money plus extra (called “interest” or a “return on their investment”).
We would advise you to pick amounts that are reasonable but as you go through the exercise be sure to talk to your kids about the importance of saving and encourage them when they do it. For some great, reasonably priced piggy bank suggestions we like click here.
Savings Account
If you feel your kids are too old for a piggy bank you can take a step up and get them an actual savings account. Many banks and credit unions (a credit union is basically a bank just a non for profit business vs. a bank which is a for profit business) offer savings accounts for kids that come with many features.
In terms of which features to pay most attention to, we would look at 1) the interest rate they offer, 2) any minimum balance requirements or fees associated with the account, 3) the parental controls available around the account, and 4) what other features the account may offer to help teach kids about money.
There are many great options out there and if you are looking down this path and this article might help.
Money Apps
Should you want to go the app route for teaching your kid about saving there are also a lot of great options and they can be fun as well.
Similar to establishing a savings account above, if you are looking to use the app as a vehicle to place money we would would pay attention to what the app offers around interest rate, minimum balances, parental controls, and other features as a starting point.
Here is a good article with some suggestions. If you are looking to just find some fun games online or in app form that can help teach saving check this out.
Board games
Board games can be a great way to teach saving and also get the whole family involved. We believe in the power of play as there is evidence that one of the best ways kids can learn is actually through play.
Whether it is Monopoly or Payday or The Game of Life, there are so many games out there that can help you drive this concept home to kids while also spending time together. We have a curated game library as well you can check out and we hope it can help you find what you are looking for.
Savings contest
A savings contest is a fun way to teach the concept of saving and you can also get the whole family involved. If your kid is earning an allowance or getting money some other way, you can set up a competition with them and see who can save the most over a period of time (month, months, maybe even a year).
You can also adjust this if needed (say their savings are worth 2x vs. yours). If you have multiple kids you can have them all enter the competition (we have a printable money savings challenge below).
We would suggest putting a big jar or board in an area where the whole family can see sort of like a score board until the determined time runs out. Your can revisit this contest at dinners or at gathering points in the day to see how well everyone is doing.
For the winner, we would make the reward something that they get to choose but try to keep it reasonable and something that possibly the whole family can enjoy (maybe a trip to a water park or a night out to eat?). There are lots of ideas and the whole family can have a blast doing it.
Final Thoughts…
No matter how young or old your kids are it’s never too late to teach them about saving money. By making it as fun as possible or getting the whole family involved it can help teach valuable lessons while also accomplishing whatever goal you set out to achieve!
*For other books, toys, and games that can help teach saving please check out our curated libraries.
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