How to Make Saving Money Fun for Your Child

Teaching a child how to save money can be a tremendous challenge for most parents. The temptation of shiny new toys and delicious restaurant food can be too alluring for these little tots—and they could act out if they can’t get their hands on these things. 

Having said that, saving and financial literacy at large are crucial life skills you should instill in your child as early as possible. Not only does doing so help you make them more disciplined, but the formation of this habit can also increase their and your entire family’s savings.

Financial education doesn’t have to be boring, either! While a lot of money matters consist of mathematical terms that may fly over your child’s developing head, there are practical and creative applications to it that can be fun and digestible for your child.

Interested to know how to make saving money a fun activity? We’ve got you covered. Let’s explore six ways you as the parent can bring a sense of enjoyment to money saving for your child.

1. Use a Savings Jar or Piggy Bank

The first and simplest way you can engage your child to save is by using a savings jar or piggy bank. 

A lot of children feel disinterested in saving money since they don’t really have an underlying motivation for it. Their default mode tends to focus on the pleasures of the here and now—and we can’t really blame them for wanting to be happy and have fun. 

However, if you want them to start saving more, a good way to start is by giving them a savings jar or piggy bank. Teach them how to use it and encourage them to use it when they have spare change. 

These items provide a visual and tangible way to track their money-growing progress. A savings jar, for one, can be transparent and show the gradual growth of their efforts. You also likely already have a jar at home that you can repurpose into a savings jar for your child.

On the other hand, a piggy bank needs to be bought and has a less visible progress meter. 

In both cases, the increasing weight can be a motivating factor for your child. And once the piggy bank or savings jar is about to reach its maximum limit, the anticipation of its eventual opening can be a great feeling. It can also cause them to repeat the process and fill up the savings tool a second or third time.

2. Create Savings Competitions

Having a direct goal to work towards can be a great motivator for your child to start saving more. 

To get them even more interested in the act of saving, consider hosting a friendly competition with your family to see who can save more.

This competition can come in various forms, but the simplest version we recommend is rewarding the kid who has saved the most money (or the highest percentage of their allowance) over a time period, like a week or a month.

The winner can be recognized with an award of some sort, like dining out in a restaurant of their choice, more playtime with a gadget, or a special outing. 

Alternatively, the label of being the best saver in the family can be enough of a motivator too, especially if other siblings are joining in the competition. Whatever the case, making competitions can increase your child’s commitment to saving. 

And if done over multiple courses, they can develop the habit of saving without the need for competition. This can help set them up to become more disciplined and financially literate later in life.

3. Teach Them to Make Savings Goals

Another way to motivate your child to save is by helping them make savings goals.

There’s likely something your child really wants to buy but is currently unable to, like a flashy new toy or a fun activity with their friends. Instead of handing them the money to pay for these things directly, consider teaching them the value of saving and earning their keep themselves.

If they don’t currently have a goal to work towards, help them outline clear and established goals using SMART goal principles. SMART is an acronym that stands for specific, measurable, achievable, relevant, and time-bound. Structuring a goal around this principle makes the goal more tangible, which can make your kid more committed to working towards it.

For instance, a good goal that follows SMART principles they can adopt is to save $100 for an upcoming holiday in the next month. Depending on your monthly allowance, such a goal could be possible for your child to attain.

With a goal (or multiple) in mind, your child will naturally be more committed to saving their finances. This can be a great opportunity for you to not just have them solidify the habit, but also to teach them appropriate ways to save that they can carry with them throughout their lives.

Want to equip your kid with vital life skills early on? Westpac's article on teaching financial literacy to kids can provide you with more valuable information on the subject.

4. Roleplay Scenarios That Value Saving

Most kids love to roleplay imaginative scenarios, and it’s likely your child would love it too. If they do, consider hosting a special roleplay session that revolves around money matters like saving and spending.

For instance, you can create a mock store selling various toys and trinkets, and your kid can act as a customer. Give them a set amount of play money and also set a figure that they can earn each time they perform an action. This encourages them to actively save or spend depending on their desires.

Alternatively, you can also roleplay an imaginative scenario where there’s a big, costly event at the end of the session. You can tempt your child with various things leading up to the big event, which can allow them to weigh certain risks versus rewards.

Whatever the case, roleplaying with your kid can be effective in depicting real-life money scenarios. You’ll also be with them every step of the way, giving you ample opportunities to correct bad habits and reinforce good ones. This, in turn, can help them understand the importance of saving and managing money over the long run.

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5. Get Them to Shop With You

Do you often do your shopping alone? If so, then consider bringing your kids to your next supermarket shopping spree.

Involving your child in grocery shopping can be a great way to teach them how to smartly spend and save money. It gives them practical experience in comparing costs, looking for discounts, and adding up costs to stay within a set budget.

Having them go with you on your next shopping adventure also increases their sense of responsibility. This can make them respect money more as a resource, learning that it isn’t infinite.

Furthermore, having them shop with you also prepares them for the real world. This is because it exposes them to the general cost of items and over time, they can also see that things can get pricier due to inflation. This hard truth is much better learned earlier than later to reinforce the habit and importance of money management.

6. Teach Them to Grow Their Savings

Kids and adults alike like seeing their wealth grow. But as a kid, it’s not really possible to make adult investments like real estate or stock investments due to a lack of funds and legal limitations.

However, they can still grow their savings through other channels. One effective way is through a savings account in a bank. This account not only securely holds a kid’s finances, but it also grows their money through interest over time.

Besides that, you as a parent can also help pad their savings by putting money in conservative growth channels like time deposits and bonds. These investment options are guaranteed to grow, which can be helpful for your kid once they turn 18 and need to pay for college tuition.

Once your kid understands that their money can grow without doing anything, they may naturally save more to earn more over time. This can make their future a more financially stable and prosperous one.

We hope we’ve helped!