How to Teach Kids About Money: Simple Ways to Teach Saving

Learning how to manage money is one of the most important skills a child can gain—and the earlier they start, the better. From saving for their first toy to managing their first paycheck, kids who understand money are more prepared for the real world. If you’ve ever wondered how to teach kids about money, it doesn’t require diving into topics like compound interest or annual percentage yield. It begins with simple conversations, hands-on practice, and a few creative tools to help them grasp the basics of smart money management.

Here’s your step-by-step guide to raising financially confident kids—no matter their age.

How to Teach Kids About Money: Start Early

As soon as your child starts saying, “I want,” it’s the perfect time to introduce the concept of saving. They might not fully understand banking, but they can learn an essential truth: sometimes we have to wait—and save—for the things we want.

Teaching delayed gratification early helps children become more mindful about their spending and more motivated to work toward goals. It also sets the stage for making smarter financial choices later in life.

Give Commissions, Not Allowances

Instead of giving your child a no-strings-attached weekly allowance, teach them that money is earned through work. Tying their allowance to age-appropriate chores—like mowing the lawn, taking out the trash, or doing the dishes—reinforces the value of hard work. This lesson helps them understand that money isn’t just handed out; it’s earned. This valuable lesson will also set them up for success when they eventually start earning a paycheck outside the home.

Make It Visual

Younger children benefit from being able to see their savings grow. Set up three clear jars labeled Save, Spend, and Share. This visual tool helps them divide their money by purpose and track progress toward their goals.

You might also place the jars near a list of what they’re saving for. Talk about the cause they want to give to through the Share jar, and when they reach a giving goal, let them help deliver the donation—whether it’s to a local charity or to someone in need.

As teens start thinking bigger, it’s a great time to move from jars to real bank accounts. Park View’s Club Savings Accounts are perfect for setting aside money for a specific goal. Whether it’s saving up for a car, a concert, or even a future trip, a Club Account keeps things organized and on track. They can even schedule automatic deposits so they’re saving without having to think about it. Want to juggle more than one goal? Open multiple Club Accounts and label them by purpose—like “Summer Road Trip” or “College Tech Fund.” It’s a simple way to stay goal-driven and financially confident.

Set Savings Goals

Saving becomes easier when there’s a clear goal in sight. Take time to sit down with your children and ask them what they’re hoping to save for. Be ready—whether it’s a new bike or the latest video game, those goals are a great place to start. Use this opportunity to teach them the importance of setting a goal and planning for it. Once they’ve picked something they want—whether it’s a toy, a game, or a new pair of shoes—help them find out how much it costs. Then, work together to figure out how long it will take to save up. This simple exercise shows that thoughtful planning is a key part of making purchases. And if they’re eager to reach their goal sooner, encourage them to take on extra chores or come up with creative ways to earn money.

Help them Open a Youth Savings Account

Once your child understands basic money principles, help them take the next step by opening a youth savings account. At Park View, kids can open their first account with as little as $5—even from birth! They can deposit birthday money, earnings from chores, and more as they watch their savings grow.

Parents who are joint owners on their child’s account can also manage Youth Accounts with Online and Mobile Banking, making it easy to transfer funds. With our Grow With Me Certificate, your child can earn a high rate of return—currently 6.00% APY¹—and learn about long-term savings in a simple, rewarding way.

As kids get a little older, Park View also helps you introduce teens to their first checking account with the Electrum Lite Checking Account, which comes with a debit card. They’ll learn how a debit card is linked directly to their checking account, and they can only spend what they have available. This is also the time to teach them how to budget their money, use an ATM, and keep track of their transactions. Emphasize the importance of keeping their debit card and PIN secure and reporting any lost or stolen cards immediately.

Teach Responsible Credit Card Use

As your teen becomes more financially independent, it’s the perfect time to introduce the concept of credit. Start by explaining how credit cards work—including interest, minimum payments, and the importance of paying the full balance each month. Help them understand that a credit card is not free money, but a tool that requires responsibility and planning. Discuss how credit history affects major life events, like buying a car, applying for a loan, or even renting an apartment. You can even walk through a sample credit card statement together to help them learn how to read it. By starting these conversations early, you’re laying the groundwork for smart credit habits that will benefit them for years to come.

Use Resources and Tools

With today’s technology, there are numerous resources and tools available to help you teach your kids about finances in fun and engaging ways. Incorporating budgeting and savings apps designed for kids and teens can make financial education more interactive and engaging. Financial literacy apps and games, like Zogo, make it easy for kids to grasp important money management concepts while having a great time.

It’s Never Too Early to Start

Teaching kids about money isn’t about being perfect—it’s about giving them the tools to make good decisions. There will be bumps along the way, but that’s how they learn.

By starting early, keeping it hands-on, and using real-life experiences, you’ll help your children build confidence and responsibility that will serve them for life.

Ready to get started? Visit Park View today to open a youth savings account or explore our Grow With Me Certificate. Kids can even earn birthday gifts and rewards for their report cards—turning smart money choices into fun celebrations.

¹Annual Percentage Yield (APY) valid as of 4/1/2025. Dividends paid quarterly. Must be age 17 and under to qualify. $100 minimum deposit. Certificate matures on child’s 18th birthday. Certificate dividend rate and APY may change. Early withdrawals will incur a 365-day dividend penalty. Balances over $50,000 will earn a reduced rate of 0.15% APY. Fees may reduce earnings.