Teach Your Children to Save: April is the Perfect Month to Start!
3/28/25 | Kinsey Love, Digital Marketing Manager
April is Financial Literacy Month, making it the perfect time to teach your children the importance of saving money. Developing good saving habits early in life can set them up for long-term financial success. Studies show that children who learn to save at a young age are more likely to be financially secure as adults. In fact, a study by the University of Cambridge found that money habits are formed as early as age 71! So let’s help them gain that confidence early on by learning to manage their own money.
The Long-Term Impact of Saving Young
Teaching kids to save early can have lifelong benefits:
Stronger Financial Stability – A report from the Consumer Financial Protection Bureau (CFPB)2 found that children who have a savings account are more likely to own assets and be financially independent as adults.
Better Money Management Skills – Learning to save teaches discipline, budgeting, and financial goal setting. A study from the American Institute of Certified Public Accountants (AICPA)3 found that 90% of teens with savings accounts feel more confident in managing money as adults.
Higher Likelihood of Homeownership & College Completion – Research from the Center for Social Development at Washington University4 found that kids with savings accounts (even with small balances) are significantly more likely to attend college and own homes in the future. Children with a college savings account of just $500 or more are three times more likely to enroll in higher education.
Lower Debt Levels in Adulthood – According to a study by T. Rowe Price5, children who discuss savings and budgeting with their parents are less likely to accumulate high levels of debt in the future. This early understanding of financial responsibility leads to better credit scores and reduced reliance on loans.
Ways Kids Can Start Saving Today
There are many ways children and teens can start saving their money:
Allowance & Chores – Encourage your child to set aside a portion of their allowance each week in a savings account. Consider using the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings. Or you could simplify it further with a 70/30 split: 70% into savings and 30% into spending.
First Jobs & Side Gigs – Whether it’s babysitting, mowing lawns, or a part-time job, kids can deposit their earnings into a savings account and watch their money grow. If they get paid with a check, kids can use mobile banking to conveniently deposit their money right into their account. Even setting aside $5-$10 per paycheck can lead to significant savings over time.
Gifts from Family – Birthdays, holidays, or special occasions often come with financial gifts. Instead of spending it all, encourage your child to save a percentage. Matching their savings contributions can be a great way to motivate them.
Set Savings Goals – Help children set realistic financial goals, such as saving for a new bike, video game, or college fund. Seeing their progress can reinforce positive habits.
Open a Youth Savings Account Today at Altabank!
A dedicated savings account helps kids track their progress and build confidence in managing money. At Altabank, we make it easy for parents and children to open a youth savings account with great features designed to help them succeed.
Benefits of opening a youth savings account at Altabank include:
- No monthly minimum balance requirements
- Interest rates on savings accounts to help money grow
- Online and mobile banking access for easy account monitoring
- Online parental controls to guide financial learning
Get Paid for Your Good Grades!
Another bonus of having an account for your kids is they can get paid for good grades! Altabank believes in rewarding students for academic excellence through our Pay Day for Grades program. Students with a checking or savings account at Altabank can earn $3 for every A or A- on their report card! It’s a great way to stay motivated in school while also building savings. Check out the details at
https://www.altabank.com/student-banking-lp#PayDayGrades.
Visit your nearest Altabank branch to start your child on the path to financial success!
https://www.altabank.com/personal-banking/savings-and-money-market-accounts
1 PBS News, Money habits are set by age 7. Teach your kids the value of a dollar now, https://www.pbs.org/newshour/economy/making-sense/money-habits-are-set-by-age-7-teach-your-kids-the-value-of-a-dollar-now
2 CFPB, Children’s Savings Account Programs: Measuring Program Performance and Outcomes, https://www.consumerfinance.gov/data-research/research-reports/childrens-savings-account-programs-measuring-program-performance-and-outcomes/
3. Parents.com, What to Teach Your Kids About Money, https://www.parents.com/parenting/better-parenting/advice/money-patterns-are-set-by-age-7-heres-what-you-should-and-should-not-be-teaching-your-kids/
4 CFPB, Common Metrics for Children’s Savings Account Programs, https://files.consumerfinance.gov/f/documents/cfpb_common-metrics-for-childrens-savings-account-programs_2020-10.pdf
5 Parents.com, What to Teach Your Kids About Money, https://www.parents.com/parenting/better-parenting/advice/money-patterns-are-set-by-age-7-heres-what-you-should-and-should-not-be-teaching-your-kids/