Teach Kids to Save Money First. It’s a Great Habit!

Below are seven reasons why saving money should be the very first money habit kids learn—and why it should be taught before any other financial principle.

Children begin receiving money and forming feelings, beliefs, and attitudes about it at very early ages, often before age five.

Research shows these early impressions can stay with them for the rest of their lives. At this stage, nearly every verbal and nonverbal message children receive about money teaches them one thing: money is meant to be spent, and usually not spent wisely.

This creates a dangerously stubborn belief that can become deeply cemented in a child’s financial psychology, reinforced daily by advertising, social norms, and adult behavior. Once formed, this mindset is difficult to reverse and can quietly undermine long-term financial well-being.

Yet this same stage of life represents a rare and powerful opportunity. Children have no bills to pay and few if any obligations, making it the perfect time to instill attitudes and beliefs that can empower them for a lifetime.

By teaching kids to get in the habit of saving money, we give them the foundational cornerstone of financial well-being and wealth building, one that strengthens confidence, choice, and security throughout their lives.

With that in mind, here are seven major benefits of teaching kids to develop the habit of saving money early.

1. It pays off for their entire life

Saving early creates benefits that compound over time—financially, emotionally, and behaviorally. Few habits deliver lifelong returns the way saving does.

2. It teaches delayed gratification—the mother of all skills

Saving helps children learn to wait, plan, and work toward goals that take time. This skill supports success in nearly every area of life and encourages more thoughtful, intentional spending decisions.

3. It builds a strong financial foundation

Making saving a routine establishes the groundwork for:

• Increased financial security and preparedness for emergencies

• Investing and long-term financial growth

• Taking advantage of future opportunities, such as starting a business or making smarter purchases

• Planning and goal-setting for major life expenses like education, transportation, homeownership, or entrepreneurship

4. It builds confidence and independence

As children see their savings grow, they develop confidence, self-esteem, and a “can-do” attitude. Saving reinforces independence and self-sufficiency.

5. It strengthens decision-making skills

Saving teaches kids how to make choices, prioritize wants and needs, and manage limited and valuable resources—key skills for effective money management.

6. It teaches the true value of money

Children learn that nothing is free and that money represents exchanged effort, time, and energy. This understanding builds respect for money and more responsible financial behavior.

7. It prepares kids to give responsibly

Saving helps children learn that generosity is strongest when it is intentional and sustainable. Kids who save are better equipped to give thoughtfully and consistently.

Closing Thoughts

Unquestionably, one of the greatest gifts a parent or educator can give a child is teaching them to get in the habit of saving money while they are young. In fact, this idea is fully consistent with the timeless advice often attributed to Warren Buffett: save first, then spend what’s left—not the other way around. Saving first does not replace teaching children about spending, wants versus needs, or making smart choices; rather, it provides the foundation that makes those lessons more meaningful and effective. When saving comes first, especially when it is connected to meaningful goals, children learn to spend with intention, prioritize wisely, and build habits that support lifelong financial well-being.

Discover more below.

Parents, Teachers, Community Leaders - Did You Know

1. A study by the University of Cambridge found children's money habits are formed by age seven, and parents are the primary influence on their children's attitudes toward money. Children who learn to save and manage their money at a young age are more likely to develop responsible financial habits in the long run.

2. A study by the Consumer Financial Protection Bureau found individuals who start saving money early in life are more likely to have emergency savings and less likely to rely on high-cost borrowing, such as payday loans. Starting to save at a young age can build a foundation for financial security and stability.

3. A study by the University of Arizona found children who are taught about saving and budgeting are more likely to have positive attitudes towards money, financial responsibility, and delayed gratification. These skills can be applied throughout life to help individuals achieve their financial goals.

4. A study by the American Psychological Association found children who are taught about money management at a young age have better financial literacy and decision-making skills. Financial literacy has been linked to higher levels of financial well-being and less financial stress in adulthood.

5. The National Endowment for Financial Education conducted a study found teaching financial education in schools resulted in students having improved financial management skills, including saving money. Early exposure to personal finance education can lead to a better understanding of financial concepts and habits that can carry over into adulthood.

6. A study by the University of Wisconsin-Madison found children who are given a savings account at a young age are more likely to attend college and have better financial outcomes in adulthood, including higher savings rates and lower debt levels. Starting saving habits early can have a significant impact on a child's financial well-being in the future.

Keep Kids and Families Learning

1. Kids, families, and schools of every kind can enroll in Sammy Rabbit’s Money School with a FREE, PREMIUM or Group Discount Money School Memberships, giving learners access to engaging, age-appropriate financial education resources.

2. Parents, teachers, and community leaders are invited to explore the resources and teaching tips available on SammyRabbit.com, starting with award-winning financial educator Sam X Renick’s article series, Money Lessons Parents Should Teach Kids! and Sammy's Kid-Friendly Dictionary that is designed for parents, teachers, and trainers who want a simple, engaging way to teach children the essential language of money.

3. Schools, community organizations, employers, and partners can learn more about Sammy's Dream Big Financial Education curriculum, a flexible, standards-aligned approach designed to help children build strong money habits, confidence, and lifelong skills.

Contact Sammy Today!

We welcome your questions, suggestions, and ideas! Let’s connect, brainstorm, and partner to keep helping kids, families, and communities build strong financial literacy knowledge, habits, and skills—so together, we can create better and brighter futures for all.

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