How to Teach Your Kids About Money: Money Management and Saving

Learn how to teach your kids about money management while making it a fun learning process. Explore everything you need to know with HyperJar.
Amabel Polglase
November 10, 2022
min read

Money can be a difficult concept for kids to understand. That’s why you should be teaching kids about money from an early age. Taking time to teach children is key to their financial success, and with the right tools and information, it can be a fun process. If kids learn the value and importance of money early, transferring those skills as an adult will be a breeze. 

Here, we cover how to teach your children about money, the benefits of good money management and savings for kids, and more.

Why it’s important to teach children about money management and saving

Money doesn’t grow on trees, unfortunately. It’s up to you as parents to teach your kids about money. By having an open and honest approach to money management, you can teach your kids how important it is to budget and save for the things they want now and in the future. 

The food they eat, the hot water they use, the shoes they wear - money is needed for everything. As a parent, you’re responsible for teaching them a healthy mindset about money.

Learning about money management and saving is a valuable life skill that will help kids to:

·   Develop financial responsibility
·   Understand and avoid debt
·   Learn how to budget and live within their means
·   Make sound financial decisions
·   Make saving a habit
·   Be more financially secure as adults
·   Understand the value of money 

How to teach your kids about money management and saving

The best way to teach your kids about money management and saving is by having them open a bank account. This will help them understand how to manage their money and save for their future. There are many options to choose from, and depending on their age, you can monitor and approve their spending as their knowledge and experience grow. 

Help them choose the correct bank account

Opening a bank account will give children a way to visualise their money and see it build up as they save. Importantly, they will also see it diminish as they spend. Banks shouldn’t be seen as stuffy, boring places for adults – make money management fun.

Choose a bank that offers perks and rewards to encourage kids to save and motivates them to achieve financial goals. Teaching kids about money should be fun, and our digital savings jars are a great way to get them started with money management.

Explain how interest savings works using HyperJar

Explaining interest rates will help kids understand how to get the most from their money. We’re not talking about Wall Street here, but a basic understanding of what interest rates are will benefit your kids in the future. A reasonable interest rate is good for saving money, and HyperJar’s 4.8% annual growthinterest rate will help them save even more.

Help them set up a budget

Budgeting is key to financial stability. Often, budgeting is a new experience for adults, so when you teach your kids from an early age, you’re setting them up for financial success.

The benefits of teaching your children to budget are:

·   Understanding how much things cost
·   Knowing how to plan for upcoming costs
·   See the importance of spending wisely
·   Learning to manage their money and not overspend

Help your kids to budget like a boss in no time with a budget calculator.

Encourage them to save regularly

Saving is a vital part of good money management. Whether they are young children saving their pocket money or teenagers saving for their first holiday with friends, saving regularly will help them reach their goals.

HyperJar’s saving jars can be customised to save for anything you like. If they set up a regular payment into their savings jars, they can sit back and watch their jars fill. You could set up a savings plan with your child, set up challenges with their friends or siblings, or introduce a weekly or monthly savings goal to keep them interested and focused. 

Teach them about responsible credit use

There are positives and negatives to credit cards. Credit cards or the use of credit should only be introduced to children old enough to understand the repercussions of poor credit use and spend responsibly. Here are a few points to raise with your kids when discussing credit cards:

·   Credit cards should only be used for emergency or unexpected expenses
·   Always make payments on time
·   Avoid getting into unaffordable debt
·   Poor credit use will impact your credit score
·   Credit can be a good thing, including interest-free monthly payments to help spread the cost of high-cost items and build a good credit rating
·   Choose a credit card with a low-interest rate

Lead by example

Kids learn quickest from their parents and carers, so you need to lead by example when it comes to teaching kids about money. If you manage money well, it will be passed on to your children naturally. You can help your kids develop good money management skills that will last a lifetime by teaching them good financial habits from an early age.

If you need to brush up on your money management skills first, check out our blog for all the tips you need. 

HyperJar Kids

HyperJar is dedicated to helping kids with money. Our free paid debit card app for children is explicitly designed to help you and your child budget together and even send messages. With our super-simple savings jars, you can rename them whatever you like, choose your favourite colour, and set targets to customise your child’s saving journey.

Kids get the same HyperJar app as adults with a few little tweaks. If kids have their own phone, they’ll be asked to link it to their adult’s account during the sign-up process. It’s a safe, secure, and free app that helps children learn about money and spending responsibly with supervision that is effective but not invasive. 

Don’t just take it from us; read what our happy customers say here

Teaching your children about money management and saving at different ages

It is never too early to start learning how to teach your child to save money. You can begin by teaching them simple concepts like counting money and recognising different coins and bills as early as three years old. As they age, you can introduce more complex concepts like budgeting, saving, and investing. 

Three to five-year-olds

·  Teach them simple counting skills using real money
·   Help them to recognise different coins and bills
·   Encourage them to save their money in a piggy bank
·   Wait to purchase items they want, so they begin to understand the idea of saving for something 

Six to eight-year-olds

·   Introduce them to simple budgeting. For example, take them shopping and ask them for help to stick to a certain budget
·   Encourage them to start saving for specific goals and reward them when they reach them
·   Help them to understand the difference between needs and wants
·   Kids can have a HyperJar account from age six, so introduce them to the idea of saving with our Jars.

Nine to 12-year-olds

·   Continue teaching them about budgeting and setting financial goals
·   Help them to research different savings options, such as bank accounts and investment plans like getting paid to plan with our 4.8% annual growth rate.
·   Encourage them to start thinking about long-term financial goals such as holidays, deposit for a house, car, university
·   Teach them to budget their money using a budget template 


·   Start taking more responsibility for their finances and contribute a small amount to household bills
·   Help them to set up a budget and stick to it, especially if they have a regular income from a full or part-time job
·   Explain the taxes and deductions from their pay checks
·   Teach them about the importance of saving, both short-term and long-term
·   Encourage them to start thinking about their future financial security
·   Explain the importance of saving for retirement
·   Show them how to be smart with credit

Young adults

·   Ask them to contribute to the household finances and be honest about the true cost of owning and maintaining a home
·   If they are living at home, they have more opportunities to save and should be thinking carefully about their future
·   Being smart with their money is critical for young adults as they need to know the importance of being financially stable as they move into adulthood

By instilling these important life skills early on, you can help set them up for a happy and healthy relationship with money.

Benefits of money management and saving with your kids

There are so many benefits to teaching your children about money management and encouraging them to save. Here are just a few. 

1. It instils good financial habits

Learning money management skills will help them develop good financial habits to carry into adulthood. It will be normal for them to budget, save and manage their money responsibly because it’s something they’ve always done. This helps avoid financial issues later in life.

2. It helps kids understand the value of money

When your kids understand how to manage money, they also learn its value. Basics like clothes, food, and household bills all need to be paid for, and understanding early will manage their expectations regarding how far money goes.

3. It teaches children about delayed gratification

Making children wait to get what they want may not always go down well, but it’s an important lesson for them to understand. Sometimes good things take time. The reward is even more significant when you have worked hard and saved to achieve your goal. This will also teach them to avoid impulse buying and make thoughtful spending decisions. 

4. It can help them build a nest egg for the future

When children save regularly, they will have a cushion to fall back on for any emergencies in the future. An emergency fund will help them avoid debt and prepare them for when they stand on their feet financially.


It’s never too late to find out how to teach your child money management and saving. You can play a massive part in shaping your children’s feelings and values about money by starting with the basics and introducing more as they grow.

HyperJar Kids is a great way to get them started on their journey and take them from a beginner to money management extraordinaire.

Amabel Polglase

Chief Marketing Officer

Amabel has diverse experience in business, marketing and entrepreneurship, including founding her own successful startup. She served in several senior leadership roles prior to joining HyperJar including Zilch and Curve Card where she led brand, marketing and communications. Before joining the fintech revolution, Amabel was a managing global client partner at Facebook and prior to that at McCann-Erickson, the world’s largest ad network. She volunteers at Girls Out Loud, a charity created to empower and inspire teenage girls, and is also a mentor at The Girls’ Network. She received her MA in history and international relations from the University of St Andrews.

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