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Teaching children how to save

Learning to save helps children grow up to be financially independent. Establishing the saving habit early can help avoid over-reliance on credit and debt problems in future years.

Link the concept of saving to concrete goals that appeal to your child, such as a video game or special activity.

Involve your child in budgeting as a way to help save for activities. For example, if you are planning a special outing to a movie, water park or show:

  • ask your child to find out the cost of admission for the entire family
  • think about other extra costs, such as parking or food
  • talk about ways to reduce costs, such as taking public transportation or eating at home before you go
  • track savings progress made toward the special activity, for example, by using a coloured graph.

As your child gets older, talk about saving for longer-term goals, such as post-secondary education.

Learning to save with a bank account

Opening a savings account for your child can be a valuable learning experience.

Many financial institutions offer no-fee accounts for children and youth. Explore your child’s options with FCAC’s Savings Account Selector Tool.

Encourage your children to put their money in a piggy bank and then, from time to time, deposit it in the account. Explain that a savings account is a safe place to put money that you are not using right away.

Go with your children to the financial institution and encourage them to make their own deposits. A hands-on approach may help your children get a better understanding of deposits and withdrawals.

Having a savings account can also help to teach your children about interest and the magic of compound interest.

Your children can check their monthly account statements or online account balances to see how the money in the account grows. This can create a positive attitude towards saving and motivate them to keep it up.

Tips for teaching children to save

  • Give them the tools to save. Help your child open a savings account that pays interest and regularly deposit money received from an allowance or gifts.
  • Set goals as the first step. Work with your child to identify savings goals, such as a toy or item of clothing. Look for opportunities to discuss the concept of longer-term goals. For example, if you are planning a family vacation six months from now, your child’s savings goal could be personal spending money for the trip.
  • Put your goals on paper. Decide how much of each allowance or gift will be set aside for saving.
  • When your child has identified savings goals, he or she can use the Make It Count Saver Sheet, developed by the Manitoba Securities Commission, to create a plan for reaching each goal. The Saver Sheet can be found in the Make It Count Parent’s Guide.
  • The Make It Count program was developed by the Manitoba Securities Commission. It has been adapted and made available for use across Canada by the Canadian Securities Administrators (CSA).
  • Match their contributions. You could encourage your children to save by matching their savings or contributing to their savings fund. For example, you may agree to pay half the cost of an item once they have saved the other half.


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Date Modified:
2013-01-22