10 Tips for Teaching the Value of Saving to Your Kids and Teens

Let’s face it—teaching kids about money often lands somewhere between needing an IV drip of espresso and dreaming of teleporting to a spa. Yet, when done right, it can actually be a fun journey that pays off big time! If you’re considering diving into the world of financial literacy with your young ones, you’re in the right place. Let’s explore the importance of not only opening a savings account for your child, but teaching them the value of saving. It’s one of the most beneficial (and surprisingly entertaining) steps you can take toward their future financial success.

Why Bother Teaching Kids About Saving?

Before you rush off to the nearest bank, let’s talk about why introducing the concept of saving to your kids is as crucial as having that playlist ready for car karaoke.

1. Learning Responsibility

Kids are adorable, yes, but they also tend to believe that candy grows on trees and money magically appears out of ATMs. Teaching them responsibility through saving helps ground those fantastic fantasies into real-world understanding.

2. Goal Setting

Remember when you were young and determined to become an astronaut or meet a unicorn? Setting savings goals is kind of like that—except it leads somewhere tangible. Kids realize how working towards a goal, like that new skateboard, is way more satisfying than immediate gratification.

3. Managing Expectations

You get the opportunity to set the record straight: Money doesn’t grow on trees. It would be lovely, but teaching the value of money means less nagging for ten-second gadgets that lose their luster by lunch the next day. Managing their expectations now before they have a chance to get the wrong idea can help you avoid some unnecessary battles over wants and set them on the right path.

4. Preparing for the Future

Life is a journey, and managing pocket money is just the beginning. Preparing them now ensures they know how to avoid life’s financial potholes when they’re off on their own adventure. Consider it the first chapter in their unofficial guidebook to becoming an adult.

Tips for Getting Your Kids Started with a Savings Account (and Saving in General)

Ready to step into the adult(ish) world of savings accounts with your kid in tow? Here’s how to make it a rewarding experience for both of you.

1. Find the Right Account

Just like Goldilocks, seek out youth savings accounts that are “just right”—no intimidating fees, no minimum balances, and perfectly tailored for your aspiring financial wizard. Some accounts offer perks for good saving habits like Greenlight, like little trophies popping up on their apps. Everybody loves a trophy!

2. Make It a Family Affair

When talking finances, you might notice kids glaze over faster than you can say “compound interest.” So involve them in the process! Explain each step in simple terms, have them sit in on online banking demos, and maybe, just maybe, even visit the bank. You’ll be weaving real-world learning with fun, and who doesn’t love an interactive experience?

3. Teach Them How Money Really Grows

Show your kids how their money can grow over time. It’s like Hogwarts but for savings accounts. Lessons about interest rates can be broken down with simple percentages or colorful charts. When money grows like magic just by staying put, what’s not to love?

4. Set Those Goals High (but Manageable)

Help them save for a goal, whether it’s a new Lego set, a video game, or clothes for school. Guide them to break it down into smaller, achievable targets. Enthusiasm wanes less when the prize doesn’t seem an eternity away. Use savings charts, stickers, or apps—because nothing says ‘well done’ like a shiny sticker.

5. Encourage Consistent Contributions

Regular savings deposits are key. Teach your kids to regularly squirrel away part of their allowance, birthday cash, or even that lost-tooth windfall. Even tiny amounts can accumulate significantly over time. In no time, they’ll understand why Mom and Dad have that “no, we can’t buy a pony” look.

6. Unleash the Power of Apps

Kids these days are digital natives, and there are countless apps designed to track savings and motivate young users. Some gamify the saving adventure with fun tasks and engaging visuals, designed to make understanding bank statements as exciting as leveling up in their favorite game.

• Ascend Bank Client Benefit: Greenlight Money App for Kids and Teens

Ascend Bank has joined forces with Greenlight to help families nurture financially-savvy kids. With its fun debit card and money app for kids and teens, Greenlight lets them gain a real-world understanding of financial responsibility while learning through exciting challenges and rewards. Using the Greenlight app, kids get hands-on money management experience, along with access to Greenlight Level Up™, an in-app financial literacy game with a best-in-class curriculum, educational challenges, and rewards.

7. Tackle Needs vs. Wants

Learning to discern needs from wants is crucial. Helping them navigate impulse purchasing can teach them a lot about restraint and avoiding buyer’s remorse in the future. They don’t know it yet, but even a little delayed gratification can be their best friend when trying to reach those savings goals.

8. Be a Role Model

Let’s face it; kids watch us like hawks. Whether it’s saving a few dollars by brewing coffee at home or discussing how you avoid splurging on non-essentials, demonstrate the value you place on saving in your everyday life. This responsible budgeting thing can be contagious.

9. Gamify Savings

Want to test your kid’s saving savviness? Make it a game by throwing in some saving challenges. Penny-saving jars, “no-spend” days, or bargain hunts can make responsible money management fun. After all, who doesn’t enjoy a dash of friendly competition with themselves?

10. Reflect and Reassess

Periodically review the account’s status with your child. Highlight savings achievements, assess withdrawals, and adjust strategies as necessary. Reflect, learn, adjust, repeat. It’s not just a lesson in economics, but in life itself.

Long-term Gains for Short-term Efforts

By investing time in teaching your child money management, you equip them with lifelong skills like financial literacy, confidence, and independence. These abilities ease turning those adult decisions—from handling car payments to budgeting for a trip—into entertaining adventures rather than monumental challenges.

Saving: It’s All About Balance

Teaching your child the art of saving is like planting a seed—you water it with knowledge, and soon enough, it blooms to provide shade, comfort, and hopefully, enthusiasm to save for life’s big goals. Don’t fret about doing it “wrong.” There’s no perfect blueprint for parenting or financial know-how—just a mission to strike a balance between saving and living.

Balance is about making smart financial decisions while investing in adventures, memories, and experiences that make life worth living. You’re setting the stage not just for a financially secure future but a life they can be proud of.

So roll up those sleeves, channel your inner financial guru, and with your budding savings prodigy by your side, step into the world of savings. Your kid’s future self will definitely thank you!