How to Teach Kids (7-14) to Budget and Save

April is Youth Financial Literacy Month and the perfect time to start teaching your kids about money management! At Texas Bay Credit Union, we believe financial education should begin early to give children the tools they need for lifelong success. Teaching kids how to budget and save from an early age builds strong financial habits and sets them up for a bright future.

Why Teaching Kids About Money Matters

Many adults struggle with managing money because they were never taught financial basics as children. A 2023 study by the National Financial Educators Council found that financial illiteracy costs the average American over $1,800 per year. Teaching children financial skills early can help them avoid common financial pitfalls and develop good money habits before they reach adulthood.

Kids who learn how to budget and save at a young age:

• Develop responsibility and financial confidence
• Understand the difference between needs and wants
• Learn the importance of setting goals
• Build strong saving and spending habits

Budgeting and Saving for Kids Ages 7-10

At this age, children are beginning to understand basic math and the concept of money. The key is to keep things simple and fun.

1. Use a Clear Jar for Savings

Instead of a traditional piggy bank, use a clear jar so kids can visually see their savings grow. This makes saving more tangible and rewarding. Tip: Label the jar with a specific goal, like “New Bike Fund”, to encourage long-term saving.

2. Introduce the Concept of Earning Money

Start teaching kids that money doesn’t just appear—it has to be earned. Give them opportunities to earn money through small chores, like:

• Helping with laundry
• Organizing toys
• Feeding pets

This helps children understand the value of working for money.

3. Teach the Spend, Save, Give Method

Encourage kids to divide their money into three categories:

•  Spend: Money for small treats (like toys or candy)
•  Save: Money for bigger goals (like a new game or a special outing)
•  Give: Money for charity or helping others

Providing three separate jars or envelopes for these categories helps reinforce the habit.

4. Turn Grocery Shopping into a Learning Experience

Take your child shopping and let them compare prices. Show them how to:

• Check price tags
• Look for sales and discounts
• Understand why some brands cost more than others

This hands-on approach helps kids understand the importance of smart spending choices.

Budgeting and Saving for Kids Ages 11-14

Older kids can handle more responsibility and understand advanced financial concepts. Here’s how to take their money skills to the next level.

1. Introduce a Simple Budget

Teach your child to track their income and expenses using a basic budgeting method. A simple way to do this is by using a notebook or a budgeting app designed for kids.

• Example Budget for a 12-Year-Old:

Income Source	Amount ($)
Weekly Chores	10
Birthday Gift Money	25
Total Income	$35

 

Expense Category	Amount ($)
Fun Money (Snacks, Small Toys)	10
Savings (Bigger Purchase)	20
Charity	5
Total Expenses	$35

This simple budget helps kids see where their money goes and encourages them to make intentional spending choices.

2. Set a Savings Goal

Encourage your child to set a savings goal for something they really want, like a:

• New video game
• Pair of sneakers
• Special outing with friends

Help them calculate how long it will take to save up based on their income. This builds patience and delayed gratification—a key financial skill.

3. Open a Youth Savings Account

This is a great age to introduce banking basics. Texas Bay Credit Union offers savings accounts that can help kids learn how to:

• Deposit money
• Watch their savings grow
• Earn interest on their savings

A real bank account helps kids feel more responsible and gives them a head start on financial independence.

4. Introduce Needs vs. Wants

Middle schoolers often start making independent spending decisions. Teaching them to differentiate between needs and wants will help them make better choices.

• Activity Idea: Give your child a set amount of “spending money” for a week. Let them decide how to spend it, but once it’s gone, it’s gone! This teaches budgeting in a real-life setting.

Fun and Engaging Ways to Teach Financial Literacy

Kids learn best through hands-on activities. Here are some fun ways to reinforce budgeting and saving concepts:

•  Play Money Games: Games like Monopoly, The Game of Life, or Payday teach financial skills in a fun way.
• Use an Allowance System: Set up a weekly allowance with guidelines on saving and spending.
•  Practice Smart Spending: Let kids compare prices and find cheaper alternatives when shopping.
•  Challenge Them to a Savings Goal: Set a fun challenge—who can save the most in a month?

Start Early and Keep It Fun!

Teaching kids about budgeting and saving from a young age sets them up for future financial success. Whether it’s through simple savings jars, budgeting exercises, or opening a youth savings account, the key is to make money lessons engaging and practical.

At Texas Bay Credit Union, we’re committed to helping families build strong financial futures. Encourage your child to start their financial journey—because good money habits last a lifetime!

Start Your Child’s Savings Journey Today!

Looking for a great way to help your child save? Open a savings account with Texas Bay Credit Union today and give them a head start on financial success.