Wait and save for ages three to age five.

Delayed gratification is the one quality that can predict if people will be successful or not. Research has found that children who are willing to delay gratification have higher SAT scores, better social skills, better responses to stress, and lower levels of substance abuse.

For preschool aged children, it’s a good time to learn that if they want something, they have to wait and save for it. Additionally, just because they’re in a store doesn’t mean that they’ll walk out with something.


Label three jars; “Saving,” “Spending” or “Sharing.” When your child receives money, divide it equally among the jars. So, the spending jar is for small purchases, the saving jar is for more expensive items, and the sharing jar goes towards a donation to a local charity. Use clear jars so that your child can see the money grow.

Earning money for ages six to ten.

Elementary-aged children can learn how money is earned and as such, money should be spent wisely because when it’s gone, it’s gone. Now is a good time to introduce the concept of paying kids for extra household jobs that are outside of the core household jobs they’re routinely expected to contribute to the household.


Give them commissions for age-appropriate jobs such as taking out the trash, doing the dishes, watering the plants, clearing and setting the table, packing their own lunches, helping to prepare meals, etc.

Money grows faster when saving earlier for ages 11 to 13.

Start working on long-term goals by introducing compound interest. This is simply where you earn interest on your savings and the past interest from your savings. Compound interest can be described using specific number. For example, if you set aside $10 every month with a 2.5% interest rate starting at age 11, you’d have $13,410.84 by age 65, but if you start at age 35, you’ll only have $5,268.32 by age 65.


Encourage your child to do compound interest calculations on Investor.gov so that they can see how much they’ll earn. Have kids think about needs versus wants and the actions and sacrifices they need to make if they want something. For example, instead of buying a snack each day after school, they could deposit that money into a savings account so it can earn interest and they can watch their money grow.