Teach Kids the Power of Saving Money Habitually
Parents, if you're a Sammy Rabbit fan, you already know we strongly believe in teaching one money habit above all others: Get in the habit of saving money!
It's not just the title of our signature song — it's our favorite mantra: Saving money is a great habit!
Why Teach Kids to Save and Make It a Habit
Prioritized and habitual saving is the cornerstone to long-term personal finance success and overall financial wellness. Research reveals children begin forming their habits, attitudes, and a relationship with money much earlier than many realize, between birth and age 7.
That means the foundation for how kids feel and think about money is being laid before they even enter elementary school. By parenting, educating, and encouraging children to build a healthy relationship with money from the very beginning, we give them a lifelong advantage. Saving not only equips them to pursue their dreams and goals, but also strengthens their ability to protect themselves against the tsunami of consumer pressures they will face continuously throughout life.
Choosing to parent kids into make saving a habit early is more than just a financial strategy, it’s a shield, a mindset, and a lifelong gift.
Habit Formation is the Secret Sauce
If there’s a “secret sauce” to teaching kids about money, it’s this: instilling the right money habits early. The goal is to make these habits instinctual, automatic, and deeply woven into a child’s core being, so natural they don’t have to think twice about them.
Habits produce predictable outcomes, and that’s what makes them both powerful and transformational. With the right habits in place, children (and adults) can steadily build the future they want, one choice at a time.
And when it comes to money, saving is one of the most important habits of all. It’s not just practical, it’s life changing. Here are 5 of its long-lasting benefits.
It teaches delayed gratification — the "super" ingredient for growth and "all" lasting success. It is one of the greatest gifts a parent can give a child, with benefits that go far beyond financial success. Learning to delay gratification positively impacts every area of life.
It immediately sets children on a path to greater prosperity, independence, and financial security. It lays the foundation for making other smart money choices — including earning, investing, spending smart, and giving wisely.
It teaches planning and goal setting.
It protects against thoughtless and impulsive spending by giving time to think through our money choices;
It instills discipline, which strengthens confidence and esteem.
Want more insights on the powerful benefits of saving money? Check out our companion article: 10 Reasons Why the Habit of Saving Money is Vital to Your Well-Being!
When to Start Teaching Saving
Start teaching kids to save as early as possible—ideally by ages 3 to 5 or even sooner—so saving becomes a natural habit that supports smart money choices throughout life.
At this stage, children’s minds are like a clean slate, ready to absorb and adopt new ideas and habits. This is a brief but powerful window to start planting the seeds for positive money habits, feelings, and attitudes.
Why is this important?
Our habits, feelings, and attitudes often influence our money choices as much as, if not more than, our logical thinking. By shaping these early, you set the foundation for smart financial decisions later in life.
Remember, financial education is a journey. Mastery takes time and repetition. Stay consistent, and you’ll see progress. You’ve got this—and so do your kids!
Did you know?
According to the Federal Reserve Bank of St. Louis children who are introduced to saving before age 12 are more likely to continue saving into adulthood. Research indicates that early financial education can lead to better financial habits and outcomes later in life.
How to Start Saving Habits: 3 Easy and Fun Steps
Simple, consistent activities like singing a song, doing a fun activity, and regularly saving coins create powerful money habits. Have kids:
Read, listen and discuss the song Get in the Habit!
Have children complete the activities associated with the song.
Make a deposit with your child or children into a piggy bank, savings jar or into a savings account at the financial institution of your choice. Repeat weekly.
Access song and activites | lyrics and discussion questions.
Parting Thoughts
Saving money is something kids can and should do, even if they don’t regularly earn money. Starting to build that money muscle as early as possible helps them develop good habits and avoid making poor money choices over and over. Many children receive money at different times throughout the year—like birthdays, holidays, or allowances—and saving from these moments sets them up for financial success.
Lastly, if you can teach a child to make saving a regular habit and prioritize it over spending—what experts call “paying yourself first,” or as renowned investor Warren Buffett says, “save first, then spend”—you will transform their life and empower them to be unstoppable, giving them the ability to turn many of their biggest dreams into reality!
Quick Reminder:
Saving isn’t about the amount—it’s about the habit. Even small savings from gifts or allowances add up and build important money muscles.
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Keep Kids Learning, Growing, and "Becoming"
Let's get kids financially literate, dreaming big, and becoming everything they are capable of becoming. Here is what you can do to educate, empower, and elevate children:
Enroll kids in Sammy Rabbit's Money School! Take advantage of either our FREE or budget friendly PREMIUM Memberships today!
Collaborate and partner with Team Sammy on '1' financial education strategy in your community. See our Menu of Project Ideas or suggestion one of your own!
Contact Sammy
CONTACT Sammy today!
We welcome your questions, suggestions, brainstorming discussions and support advancing Sammy Rabbit's mission—getting kids, families, and communities consistently advancing their financial literacy!
Recommend Reading and Resources
Money Lesson 2 Parents Should Teach Kids: Dream Big - Aim High!
Money Lesson 3 Parents Should Teach Kids: Goals are Like Gold!
Song: The Secret
Song: Budget
Story: Sammy's Big Dream
Bonus Content: Insight and Song
The title of David Bach’s bestselling personal finance book says it perfectly: The Automatic Millionaire! One of the easiest and most effective ways to build a habit is to automate it. Automation turbocharges habit formation by reducing the mental effort and decision-making needed to stay consistent.
We love the strategy so much, we wove it into the lyrics of Sammy Rabbit’s toe-tapping, hand-clapping money song, S-A-V-E:
...make it a habit; make it automatic... (referring to saving and investing)
If you choose to automate your child’s savings, be sure to also:
Have them regularly deposit money into a piggy bank or savings jar
Periodically review their savings statements together (as you see fit)
These small, hands-on steps reinforce the habit and keep kids actively engaged in their financial growth.
5 Outstanding Quotes and Sammyriffic Wisdom on Saving Money
Saving money sets kids up for sustained success and making lots of dreams come true! Here are five outstanding quotes that provide some additional inspiration and motivation to get kids in the habit of saving money.
One: This quote from T. T. Munger is a favorite. We wholeheartedly agree with it:
The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
Two: George Clason put it this way in his classic, The Richest Man in Babylon:
Pay yourself first!
Three: The personal finance blog, The Simple Dollar, and many others, communicate the concept as follows:
Rule #1 - Spend less than you earn!
Four: Warren Buffett is not one of the wealthiest people on the planet by accident. I have found it a good idea to check in on his thinking on personal finance matters, whether it is saving money, investing it, or anything else. Buffett shares this sage and Sammyriffic guidance:
Do not save what is left after spending, but spend what is left after saving.
Five: Sammy Rabbit emphasizes it this way in his story books, songs and activities:
Saving is a great habit!