Understanding the Value of a Dollar: How Should You Teach Your Children About Saving Money?

Teaching your children about the importance of saving money now can give them a solid financial foundation for their future

Helping your kids learn to save is one of the best gifts you can give them. In North Carolina, where the cost of living and college expenses continue to rise, teaching children money skills early builds lifelong habits. Here are simple, practical steps to make saving a family habit and tie lessons to local resources.

1. Practice what you preach.

Children copy what they see. If they watch you drop spare change into a clear jar or transfer funds into your NC 529 Plan account, they’ll learn that saving is a priority. Use a see-through piggy bank or clear jar so they can watch savings grow and relate it to something visible, like a family outing to the North Carolina Aquarium at Fort Fisher once you reach your goal.

2. Use a jar or envelope system.

Label jars or envelopes “Save,” “Spend,” “Give” and for older kids, “Invest.” Place them in the kitchen or home office. Help your child divide allowances or birthday money into each. Involve them when you transfer savings to a youth account at your local credit union, many, like State Employees’ Credit Union, offer special youth savings programs and matching contributions for students in 4-H or local school clubs.

3. Create a savings chart.

Hang a calendar or chart on the fridge showing weekly or monthly goals. Mark progress with stickers or colored pens. Tie milestones to North Carolina events, save $50 by six weeks before the fair at the NC State Fairgrounds, for example. Visual trackers motivate kids and reinforce the connection between effort and outcome.

4. Match your child’s contributions.

Reward saving by matching every dollar they set aside. If you contribute up to $1 for each $1 they save, they see the benefit of delayed spending. This simulates employer 401(k) matches and shows how saving can compound. Make sure to budget this match in your own finances so it remains consistent.

5. Talk about money.

Discuss family budgets when paying county property taxes or planning summer camp at JCC Camps in Western North Carolina. Explain why you choose to cut cable or shop sales to free up funds. Age-appropriate conversations help children understand trade-offs and teamwork in managing household finances.

6. Consider an allowance.

When your child can do basic math, an allowance of $5–$10 per week gives real-world practice. They decide how much goes into each jar. Keep chores separate, chores are family responsibilities, not paid tasks. This distinction teaches work ethic and civic duty.

7. Let them make small mistakes.

Small errors, like spending allowance on candy instead of a toy—become powerful lessons. Resist bailing them out. When they face the consequence of a depleted envelope, they learn to plan ahead. These low-stakes lessons prepare them for adult decisions, from car repairs to rent.

8. Teach needs versus wants.

Explain that needs are essentials, groceries, school supplies—while wants are extras—designer sneakers or the latest gadget. Use real examples: compare the cost of standard school uniforms to name-brand options. Agree that you cover essential costs, but they save for the splurge portion. This builds decision-making skills.

Additional North Carolina resources

• NC 529 College Savings Plan: tax-advantaged savings for education
• North Carolina Cooperative Extension: youth financial literacy curricula and workshops
• NC Department of Justice Consumer Protection: free guides on budgeting and identity protection
• Local credit unions (SECU, Truist, PNC): youth savings accounts with education tools and games

By modeling good habits, using visual tools and tapping into North Carolina programs, you can teach your children that every dollar has value, and help them build a secure financial future.