Skip to main content
Money & Parenting

The Value of Saving, Spending, and Giving

By June 19, 2023December 6th, 2023No Comments
Teaching Kids the Value of Saving Spending and Giving

Financial Lessons for Kids and Young Adults

Financial literacy is crucial in today’s world, and teaching children about money from a young age is essential. By teaching the value of saving, spending, and giving, parents can guide their children towards a healthy and responsible relationship with money.

Saving helps cultivate discipline and financial security;

Spending teaches about choices and priorities;

And giving instils empathy and generosity.

This article provides practical tips for parents to integrate these lessons into everyday life, empowering children to make informed financial decisions and develop healthy financial habits for the future.

The Value of Saving

Saving entails making conscious decisions to allocate money for later use, which can be beneficial in various ways.

Saving money provides individuals with a sense of financial security and stability. By setting aside funds for emergencies or unexpected expenses, people can handle unforeseen circumstances without resorting to debt or financial stress. This practice instils a sense of preparedness and helps individuals navigate challenging financial situations more effectively.

Another crucial aspect of saving money is the development of discipline and self-control. It fosters the ability to resist impulsive spending and make thoughtful decisions about how to allocate resources. Learning to prioritise needs over wants and distinguishing between essential and non-essential expenses are valuable skills that can contribute to long-term financial well-being.

Furthermore, saving money provides opportunities for personal growth and financial freedom. Accumulating savings can open doors to investment opportunities, enabling individuals to grow their wealth and generate passive income. Saving also provides a safety net during retirement, allowing individuals to maintain their desired lifestyle and fulfil their retirement goals without relying solely on limited sources of income.

Teaching the Benefits of Saving

  • Financial Literacy: Teaching children about saving helps develop financial literacy skills from an early age. They learn the value of money, how to budget, and the importance of setting financial goals.
  • Goal Setting: Learning how to save will allow children to set goals for themselves. They can save for a specific toy, game, or item they want, and work towards achieving that goal. This helps them understand the concept of delayed gratification and the satisfaction of reaching their targets.
  • Money Management: Saving teaches children about money management. They learn to prioritise their spending, distinguish between needs and wants, and make thoughtful decisions about how to allocate their money.
  • Developing Discipline: Saving requires discipline and self-control. By learning how to save their money, children and young adults develop these important life skills, which can benefit them in various aspects of their lives.
  • Long-Term Financial Habits: Learning to save at a young age establishes a foundation for long-term financial habits. It encourages responsible financial behaviour that can carry over into adulthood, helping them make smarter financial decisions in the future.
  • Independence and Confidence: Learning how to save empowers children and young adults to be more independent and self-reliant. They gain confidence in managing their finances and become less dependent on others for financial support.

Practical Saving Techniques for Kids

  • Setting savings goals: Encourage children to set specific savings goals. Whether it’s saving for a toy, a special outing, or even a long-term goal, having a target in mind can motivate children to save consistently.
  • Establishing a savings routine: Help children develop a habit of saving by establishing a regular savings routine. Encourage them to set aside a portion of their allowance or gift money regularly, such as every week or month. This helps instil the discipline of saving consistently.
  • Encouraging the use of savings jars or piggy banks: Provide children with a physical container, such as a savings jar or a piggy bank, to deposit their savings. This tangible representation of their savings can make the concept more concrete and enjoyable for children. It also helps them develop a sense of ownership over their savings and a visual reminder of their progress.

By implementing these practical techniques, parents can help their children develop good saving habits, learn the value of money, and foster a sense of financial responsibility from an early age.

Responsible Spending Habits

Teaching kids about responsible spending habits is essential for their financial well-being. Here are some strategies:

  • Teach kids about budgeting: Introduce the concept of budgeting to children by explaining how it involves allocating money for different purposes. Teach them to create a simple budget that includes categories such as savings, spending, and giving. Encourage them to allocate their money accordingly, helping them understand the importance of planning their expenses.
  • Understand needs vs. wants: Explain that needs are essential for survival and well-being, such as food, clothing, and shelter. Wants, on the other hand, are things that are nice to have but not necessary. Teaching children to prioritise needs over wants fosters responsible spending habits and helps them make more informed purchasing decisions.
  • Make wise purchasing decisions: Encourage them to think critically about their purchases by considering factors such as quality, durability, and value for money. Help them evaluate whether a particular item aligns with their needs and represents a good long-term investment.
  • Set spending limits: Help them understand that there are constraints on their financial resources and that overspending can have consequences. Encourage them to consider their budget and financial goals when making purchasing decisions, ensuring they stay within their means.
  • Promote comparison shopping and value assessment: Teach them to research and compare prices, read product reviews, and consider alternative options before making a purchase. This helps them develop the habit of being savvy consumers who make informed choices based on value and quality.

The Value of Giving

The value of giving is an essential lesson to teach children as part of their financial education and personal development. By instilling in them the importance of giving back, parents can help cultivate empathy, compassion, and a sense of social responsibility. Children should be encouraged to understand and empathise with the needs of others, fostering a genuine concern for the well-being of those around them. This can be achieved through open discussions about the challenges faced by individuals and communities, helping children develop a broader perspective and a desire to make a positive impact.

Teaching kids about generosity is also crucial. They should learn that giving goes beyond monetary donations and can include acts of kindness, volunteering, or sharing their time and talents. By emphasising the joy and fulfilment that comes from giving, children begin to realise the positive impact they can have on others’ lives. Gratitude plays a significant role in this process, as children learn to appreciate what they have and recognise that they can share their abundance with those who have less.

Engaging children in charitable activities further reinforces the value of giving. Involving them in community service projects, volunteering opportunities, or donating their belongings to those in need allows children to witness firsthand the differences they can make. These hands-on experiences create lasting impressions and teach children the power of their actions.

Leading by example is paramount when teaching the value of giving. Parents should model acts of generosity and involve their children in their charitable endeavours. By showcasing a giving mindset and involving children in philanthropic activities, parents set the stage for their children to develop a lifelong commitment to giving back.

Exploring Different Ways to Give

  • Donating money to charities

Teaching children about the option of donating money to charities helps them understand the power of financial contributions. Parents can involve children in the process by researching and selecting charities that align with their interests or causes they feel passionate about. This can include organisations that support education, health, the environment, or other social issues.

  • Volunteering time and skills

Encouraging children to volunteer their time and skills allows them to make a direct impact on their communities. Parents can help children identify volunteer opportunities that match their interests and abilities. This can include volunteering at local shelters, community centres, or nonprofit organisations. Whether it’s helping with food drives, participating in environmental clean-up efforts, or assisting the elderly, volunteering enables children to actively contribute their time and energy to make a difference.

  • Helping others in need within the community

Children can also be encouraged to help others in need within their communities. This can involve acts of kindness and support towards neighbours, friends, or classmates who may be facing challenges. Parents can teach children to be observant and sensitive to the needs of those around them and guide them in offering assistance or resources such as sharing toys, helping with chores, or providing emotional support.

By exploring these different ways to give, parents empower their children to become active and engaged members of society. They learn the importance of contributing their resources, time, and skills to help those in need. Through these experiences, children develop a sense of social responsibility and a deeper understanding of the value of giving.


Teaching children about money is essential for their development of a responsible and healthy relationship with finances. By instilling the values of saving, spending, and giving, parents can equip their children with important life skills. Saving teaches discipline, delayed gratification, and financial security, while spending teaches decision-making and prioritisation. Giving fosters empathy, generosity, and a desire to make a positive impact on others.

To effectively teach these lessons, parents should integrate them into everyday life. This can be done by discussing the differences between wants and needs, setting savings goals, and involving children in family-giving decision. By actively engaging children in these financial matters, parents help them develop informed decision-making skills and cultivate healthy financial habits.

Let’s find a loan for you within minutes

Related articles

The Coffee Index 1620 × 1080px

The Coffee Index: Coffee Prices in Australia in 2023

| Lifestyle Finance | No Comments
We have gathered information on the average cost of a cup of coffee in different parts of Australia, including major cities and regional areas.
macc and sacc loans

Loan Type – SACC vs MACC

| Loans in Australia | No Comments
There are many loan types for consumers such as secured, unsecured, lines of credit, home loans, etc. However, most consumers opt for one of two…
A picture of the Australian flag with tall skyscrapers in its background

The Financial Journey of Migrating to Australia

| Lifestyle Finance | No Comments
When contemplating a move to Australia, it's essential to establish a thorough financial plan to oversee the expenses and ensure a seamless transition.

10 Credit Score Apps in Australia You Can Use for Free

| Credit Scores & Credit Reports, Personal Finance | No Comments
Top 10 credit score applications in Australia you can use for free.