How To Pass On The Right Money Habits

Many of the habits we form as adults begin in childhood, often picked up from the grown-ups in our lives.

One of the most valuable habits a parent or carer can nurture is a good savings routine. Helping children understand the value of money and encouraging regular saving can build financial independence and support their wellbeing for years to come.

Fortunately, there are lots of fun, engaging ways to start.

Start as Early as Possible

With toddlers, it can be as simple as using a moneybox and setting a daily routine - perhaps adding a few coins each night before bed. Make it fun by using the coins to play shop, helping them learn the value of money and distinguish between needs and wants.

As they grow, introduce savings goals - perhaps a toy they really want. Start with something achievable and build towards longer-term goals. This teaches patience and the idea that, in a world of instant gratification, some things are worth waiting for.

Inspire Them to Save

For older children, giving regular pocket money and encouraging them to save a portion can reinforce good habits. A clear savings goal helps maintain motivation. You might also explore extra ways to grow their pot - such as small payments for chores or choosing a cheaper snack, with the savings added to their fund.

Incentives can work well. Offering small rewards for hitting milestones or saving consistently can keep them engaged. You could even offer to match what they save to encourage them to set aside more of their own money.

Once saving becomes a habit, consider opening a savings account. Involve your child in choosing one - perhaps at a local building society - and talk through the benefits, such as interest rates and how savings grow over time. Encourage them to check their balance regularly and take pride in their progress.

Remember the Reward

To embed the habit for life, don’t focus solely on the act of saving - highlight the reward. Help them imagine achieving their goal. They could draw a picture of themselves with the item they’re saving for or write a short story about what they’ll do with it.

Lead by Example

Once they’ve grasped the basics, talk to your children about how you manage your own savings and budget. Explain the importance of setting money aside - not just for fun things like holidays, but also for unexpected costs such as a car repair.

Discuss the difference between needs and wants: you need to pay for electricity, but you may also want to save for a new jumper. You could even involve them in family budgeting by setting a small allowance to plan a meal or a day out.

However you go about it, UK Savings Week is a great time to begin. You could be giving your child a gift that lasts a lifetime.

UK Savings Week is an initiative from the Building Societies Association (BSA), designed to help people build better saving habits. Visit uksavingsweek.co.uk for tips, tools, and ideas to support your family’s savings journey.