Small Moves, Big Progress: How to Teach your Child About Saving $

Smiling dad and child in new england snow

Parenting is a tough job.

Between navigating care, juggling household responsibilities, and managing nonstop schedules, it’s normal to question, “Am I doing this right?” And money talk is no exception.

Research shows that children who are taught healthy financial habits early are less likely to experience financial hardship later in life.

That’s why we’ve put together this guide you can refer to as you start teaching your child about saving.

Short vs long-term goals

First things first: teach your child the difference between short and long-term savings goals.

A short-term goal could be “affording an ice cream to enjoy over the weekend.”

A long-term goal could be “purchasing my first phone or laptop.”

Break down their goals by defining how long it will take to reach, how much money is needed, and how much they’ll need to save each week.

Use these steps to create productive goals:

Identify a goal
Talk about the purpose of the goal (if small, mention short-term benefits; for bigger goals, mention long-term benefits)
Establish a timeline
Make a plan using a fun template or progress tracker. Use ours here!
Track the progress, support your child, and celebrate their saving milestones!

One proven strategy to help motivate your child is to match their savings. When they put in $10, you put in $10. That way, their money grows even faster, incentivizing their intention to save for the future and achieve their goals.

Habits matter more than amounts

Kids don’t need to understand interest rates or complicated financial planning. What they do need is repetition.

Saving money regularly shows them:

Progress happens over time

Consistency matters more than perfection

Goals are worth waiting for

Between allowance money, birthday cash, or earnings from small chores, your child will naturally accumulate money over time. When they associate their goals with their savings, they are more likely to stick to the habit.

Make saving tangible

When kids can see their savings grow, the lesson clicks.

Since the concept of real money can be foreign to younger children, we recommend quantifying “money” by using things they already understand, like toys, pieces of candy, or even play or game time.

For example, if you give them a certain number of M&M’s, help them set a goal for a certain amount (a.k.a. “saving up” for something).

With each school day, good grade, or chore completed, you can give them more M&M’s.

Over time, they’ll accumulate a certain amount, and you can cash it in for a real dollar amount.

You’re teaching them about saving and helping them think about spending habits, whether they realize it or not.

If your child is older and they understand the concept of real money, here are a few tips that could help:

Talk about what they’re saving for

Check balances together

Celebrate milestones, even small ones

Discuss the importance progress of over perfection

Encouraging them to save shouldn’t give them the impression that spending is bad. In fact, it’s a healthy way for them to consider their options, make choices, and develop a mindset built on confidence, not guilt.

What matters most is helping them understand that occasional spending doesn’t erase progress; it’s the ongoing habit that counts.

Give their savings a “home”

For families looking to make saving more engaging, small incentives can go a long way. Having a dedicated place for kids’ savings can make the process feel more real and more motivating.

Some families choose tools like our Stash Savings Account, which is designed to support goal-based saving and help kids track their progress over time. It’s a simple way to reinforce the habit without overcomplicating things.

From now until February 28th, we’re offering a stuffed animal “Stash,” Central One’s mascot for those who open a Stash Savings account, with a minimum deposit of $100. You can find more details here: Youth Savings – Central One Federal Credit Union

Small lessons today, lifelong confidence tomorrow

As a parent, it’s important to focus on small moves and steady habits. We hope the tips above help give your children something far bigger than a balance, a foundation for real financial confidence.

And that’s progress worth celebrating.

Small Moves, Big Progress: How to Teach your Child About Saving $

Short vs long-term goals

Habits matter more than amounts

Make saving tangible

Give their savings a “home”

Small lessons today, lifelong confidence tomorrow

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