Top Savings Lessons Every Parent and Grandparent Should Teach Their Kids

Teaching children about money early is one of the best gifts parents and grandparents can give. Financial education builds confidence, responsibility, and lifelong success. This February, while love is in the air, take time to instill valuable saving habits in your kids or grandkids. Here are some top savings lessons to help create a successful saver ready to tackle the future.

1. The Value of Saving vs. Spending

Understanding the difference between saving and spending is a cornerstone of financial education. Start by explaining the importance of putting money aside for bigger goals rather than spending it all at once. Use simple examples, like saving for a new toy, to illustrate how patience pays off.

Savings Tip: Encourage kids to divide any money they receive into three jars: Save, Spend, and Share. This helps them balance their financial priorities.

2. Open a Savings Account Early

A Lake Ridge Bank Junior Savers account is an excellent tool to teach financial responsibility. Opening an account early allows children to watch their money grow over time while introducing them to basic banking concepts.

Benefits of Junior Savers Accounts:

• Teaches the importance of long-term savings.
• Shows how interest can make money grow.
• Makes saving feel “grown-up” and exciting!

Consider opening a Junior Savers account at Lake Ridge Bank, where we specialize in helping young savers with financial education and fun tools to learn about money.

3. Set Savings Goals Together

Help children dream big and set achievable financial goals. Whether it’s a new gadget, a bike, or even saving for college, having a tangible target makes saving meaningful.

Savings Tip: Use a visual tracker, like a chart or a jar, to show their progress. Seeing their savings grow can be incredibly motivating!

4. Make Saving a Habit

Just like brushing their teeth, saving money should become a habit. Teach kids to save a portion of any allowance, birthday money, or holiday gifts they receive.

Savings Tip: Start small—encourage saving just 10–20% of their money. Over time, this habit will become second nature.

5. Teach by Example

Children learn by watching. Be open about your own saving habits, whether it’s for a vacation, a home project, or retirement. Explain why saving is important in your own life.

Savings Tip: Share your goals with your kids and show them how you’re working toward achieving them.

6. Explain “Needs vs. Wants”

Understanding the difference between needs and wants is a vital life skill. When kids are old enough, involve them in small financial decisions, like grocery shopping, and explain how budgeting works.

Savings Tip: Use real-life examples, like prioritizing school supplies (needs) over extra toys (wants).

7. Celebrate Savings Milestones

Saving should be rewarding and fun. Celebrate when your kids reach a savings goal—whether it’s a high-five, a small reward, or letting them make a purchase they’ve been saving for.

Savings Tip: Encourage kids to reflect on how good it feels to achieve their goals. This reinforces the value of saving.

The Role of Grandparents in Financial Education

Grandparents have a special role in teaching financial lessons. Sharing stories about how saving helped them achieve their own dreams can inspire younger generations. Plus, grandparents can encourage Junior Savers by contributing to their savings accounts on special occasions.

Savings Tip: Consider gifting a contribution to a grandchild’s savings account for birthdays or holidays—it’s a gift with lifelong impact.

Make Financial Education Fun

At Lake Ridge Bank, we believe teaching kids about money should be exciting, not intimidating. With our Kids Savings Accounts, we offer tools, resources, and support to help families instill lifelong saving habits.

This Valentine’s Day, show your love by helping your kids or grandkids become smart savers. It’s a gift they’ll carry with them for life!

Ready to get started?
At Lake Ridge Bank, we’re committed to giving your kids and grandkids a strong start on their savings journey. Open a Junior Savers account with us, and we’ll kick things off with a $25 deposit to help them begin building their financial future.

Open a Kids Savings Account Today. – Link to Junior Savers Promotional Page

Let’s build a brighter financial future—together.