Savings goal chart for kids: how to teach children to save money

A savings goal chart for kids works because it turns saving into something a child can see: 1 goal they chose, a chart or jar that fills up, and a finish line close enough to reach. Kids learn to save by saving for something they want, with a wait that grows as they do. Start small, make progress visible and let the goal belong to your child.

When can a child start saving?

As soon as a child has any regular money, they can save part of it. The US Consumer Financial Protection Bureau's Money as You Grow resource suggests a simple first step for young children: find a jar or can, label it for saving, and encourage your child to put some of the money they get into it to buy a toy or treat later. Its message for this age fits in 1 line: some things are worth waiting for (CFPB, saving for young children).

The Dutch family finance institute Nibud sees about 6 as a good age to start pocket money, because children can recognize the different coins by then. It also notes that 6 year olds tend to spend money right away, and that as children grow older and understand time better, they grasp that putting money aside lets them buy something bigger later (Nibud). That is the whole case for short waits first and longer waits later.

Waiting is a skill worth practicing. A study that followed 1,000 children from birth to age 32 found that childhood self-control predicted adult outcomes, personal finances included, and that the effect could be separated from intelligence and social class (Moffitt and colleagues, 2011). Saving for a small goal is a safe place to practice it.

If you have not set up pocket money yet, start with our guide to pocket money basics.

How do you choose a first savings goal?

The CFPB puts it simply: it helps children to know exactly what they are saving for, and that is called a savings goal. Its suggested practice is to set a goal for something your child wants, break it into small steps and help them take those steps (CFPB, saving for school-age children).

A good first goal has 4 features:

• Your child chose it. A goal picked by a parent feels like a chore.
• It is concrete. "A new football" works. "Something nice" does not give the brain anything to wait for.
• It is reachable soon. The first goal should be won quickly, so your child learns that saving pays off.
• It is the only one. 1 goal at a time keeps the chart simple. A second goal can wait until the first is reached.

Then make the chart. Draw or print a picture of the goal at the top of a sheet. Below it, draw a ladder or a thermometer split into boxes, 1 box per coin or per weekly amount. Your child colors a box each time money goes into the jar.

For example, a 6 year old who wants a $10 toy and saves $2 a week gets a chart with 5 boxes: 5 weeks, 5 coloring moments, 1 toy. Counting the jar together each week turns the chart into a ritual, and the count your pocket money quest gives younger kids a clear job to do. For goal ideas that are not toys, browse our reward ideas, such as big goals and experiences and outings.

How long should a child save for at each age?

No study sets an official waiting time by age. The table below is a practical starting point built on 1 idea from the sources above: young children live in the present, and their sense of time grows with age. Adjust it to your child.

A few rules of thumb help:

1. Stretch slowly. When your child reaches 2 or 3 goals without trouble, make the next one a little longer.
2. Split long goals. If a goal is months away, add halfway rewards on the chart, such as a sticker or a small celebration at the middle box.
3. Rescue a stalled goal. If your child gives up halfway, the goal was probably too far away. Cut it into 2 smaller goals instead of dropping it.
4. Let them change their mind, once. Agree that money already saved can move to a new goal, so a change of heart is never a total loss.

Spend, save, give: how should money be split?

A simple way to make saving automatic is to split every payment into jars as soon as it arrives: spend for small things now, save for the goal, and give for a cause or person your child chooses.

How much goes into each jar? The CFPB suggests a floor: it calls saving at least a dime for every dollar a good habit, and encourages children to save 10 percent of the money they get. Above that, there is no correct split. Agree on one together and write it on the jars, for example:

• A 5 year old with 2 jars: half to spend, half to save for this week's goal.
• An 8 year old with 3 jars: half to spend, a third to save, the rest to give.
• An 11 year old: a fixed share to save first, and they budget the rest.

Paying on the same day each week matters as much as the split (the pocket money calculator helps set the weekly amount). Nibud advises giving the same amount at a fixed time, and the German Youth Institute (DJI) stresses regular small amounts given without asking and regardless of behavior, which children are free to decide on (DJI). Whether that money comes from chores is a separate choice, covered in our guide on whether kids should be paid for chores.

Should parents match what a child saves?

Matching is optional and easy to run. The CFPB suggests considering a "matching plan" in which you put in 25 cents for every dollar your child saves, then asking them to draw, chart or tell a story about how this helps their money grow. It is a hands-on first lesson in how interest rewards saving.

To keep matching simple:

• Match only the savings jar, and only money saved for the goal.
• Set a ceiling in advance, so a large gift does not trigger a large match.
• Add the match on the same day each week, in front of your child, so they see the jump on the chart.
• Stop matching at a clear point, such as a first savings account, where real interest takes over.

What about gift money and holiday money?

Birthdays and holidays can bring more money in a day than pocket money brings in months. Agree on a rule before the day comes. A common approach is a share to spend now and a share to the current goal or to long-term savings. For a young child, spending some of it right away keeps the gift joyful.

Bigger sums are the natural moment for a first account. The CFPB notes that people put money in a savings account to protect it and earn interest, suggests opening one with your child, and recommends visiting the bank 2 to 3 times a year to deposit savings and look at how much bigger the balance is on each visit. The DJI adds that older children can receive money through a current account, and that basic financial skills today include digital payment methods. Nibud lists a bank account as a good option for clothing money. Keep the paper chart going alongside the account: numbers on a screen are harder to feel than a box you color.

For children who are too young for real money, Kidventures offers a first step with stars. Kids earn stars for quests from the chore library, pin a goal they chose together with you, and on the Plus plan a savings jar has a weekly bank day where a share of their stars moves into the jar. Big rewards are paid from the jar, so kids practice the same wait with no real money involved. See the Plus plan for details.