Kids Who Save Early Become Financially Confident Adults

Discover how kids who save early build lifelong money habits and financial confidence. Learn practical steps to instil savings, budgeting and smart spending from a parent’s perspective.

Introduction

Hi there, I’m Emma, a busy mum of five and household CEO of our lively home. Between school runs, packed lunches and sibling squabbles, I’ve quietly become a money-teacher too. I’ll admit it was accidental.

One afternoon, our ten-year-old asked if she could buy a console game, and we realised she had no idea how long it would take her savings to cover it. That moment prompted me to dig into the difference between giving kids money and teaching them to save. What I discovered is this: kids who save early are far more likely to become financially confident adults.

If you’ve ever wondered how to help your child go from “just spending” to “planning and saving”, you’re in the right place. I’ll share stories from our home, research from industry experts and how you can set your child up for money success before the teenage years hit.

Why Early Saving Habits Matter

When we gave our kids small amounts of pocket money, I thought they’d simply spend or stash it. Instead, I found something magical happened when they started saving. Research supports this. A study on British adults found that having saved as a child has a “large positive influence both on the probability of saving every month and on the amount saved as an adult”. ScienceDirect

In the UK, the Money and Pensions Service (MaPS) 2024 report states that children’s attitudes towards money are established early, often by the age of seven. UK Finance

In our house, we started our middle child saving £1 each week from his allowance. Fast forward two years, and he’s confidently comparing bank accounts and asking when compound interest will kick in. That sort of financial confidence is exactly why we focus on kids who save early.

What Financial Confidence Looks Like

Financial confidence isn’t just knowing how to count change. It means:

• Understanding value: My youngest daughter saved for a bike, and when she reached her target, she chose to pass on a cheaper option because she’d planned for it.
• Having goals: Our teens keep a digital savings chart, and they feel proud when they reach milestones.
• Making informed choices: Our eldest now asks about APR, interest and savings apps, rather than just tapping “buy”.

When kids learn these habits, they grow into adults who don’t fear budgeting, who understand spending, saving and investing. That is the long-term benefit of kids who save early.

Key Benefits of Saving Early

Here are the major advantages we’ve experienced in our home, along with research-backed insights:

1. Builds positive money habits

Rather than seeing money as something to spend immediately, children begin to understand saving first.

• The MoneyHelper guide says getting kids involved early with savings “helps them learn important lessons about money.” MaPS
• In our home, I started with a clear jar for the toddler and a digital tracking app for the 12-year-old. Seeing money grow made a real difference.

2. Develops money confidence

Confidence comes from experience. If children save and succeed, they feel competent.

• The Lloyds Banking Group article says early conversations increase confidence and remove the taboo around money. Lloyds Banking Group
• My teenage daughter now negotiates better deals because she’s aware of her savings and choices.

3. Encourages goal-setting and delayed gratification

Saving early forces the concept of waiting and planning into action.

• Our family uses saving goals like “new laptop by 15th birthday”.
• Research shows that earlySaver behaviours link strongly with adult saving patterns. ScienceDirect

4. Prevents financial anxiety later on

Adults who never learnt to save often feel anxious about money. Children who save early tend to worry less.

• The MaPS report links early money attitudes with later financial resilience. UK Finance
• I remember my eldest fretting over student debt; our younger ones talk about savings instead of stress.

5. Lays the groundwork for investing and wealth building

Starting with saving often leads to more advanced skills like investing or choosing a good bank account.

• For example, parents who opt for a Junior Stocks & Shares ISA rather than a cash ISA are in a stronger long-term position. The Investment Association
• At home, we’ve introduced the older children to digital savings apps when they turned 13.

How to Support Kids Who Save Early

Here’s our practical plan, shaped by my experience as a mum of five, to help your children become confident savers:

Step 1: Start with small, consistent amounts

• Even £1 a week counts. One of my four-year-olds has a piggy bank, and we talk about what he’s saving for.
• Stick to the rule: save something rather than nothing. This builds a habit.
• If you’re still deciding how much to give, check out our guide on pocket money tips and how much kids should save for clear, family-friendly advice.

Step 2: Make saving visible

• Use a clear jar for younger children.
• Use a savings tracker or app for older kids.
• Our middle child uses a chart on the fridge where we add a sticker each week.

Step 3: Talk about it regularly

• Every Sunday we gather and chat: “How much did you save? What did you choose not to buy so you could save?”
• According to Lloyds, even informal money chats help children feel confident. Lloyds Banking Group

Step 4: Set realistic goals

• Our eldest saved for concert tickets, our youngest for a board game.
• Goals work better when they’re meaningful and achievable.

Step 5: Introduce choice and responsibility

• Once they’ve saved, let them decide how much to spend, how much to keep.
• This builds autonomy, which links to adult financial confidence.

Step 6: Use the right tools

• Consider digital platforms like the GoHenry app for older children.
• Consider setting up a children’s savings account referenced by MoneyHelper. MaPS

Step 7: Model good behaviour

• Children watch what we do. If we budget and save, they will.
• Own your saving and financial habits openly and talk about them with your kids.

Common Challenges and How to Tackle Them

Let’s be real, saving early is not always smooth. Here are issues we faced and how we handled them:

• “But I want it now!”
  Solution: We remind them that delaying a little means improved choice or quality later. I tell the story of how I saved for my first holiday solo and how it felt when I booked it with my own money.
• Peer pressure to spend
  Solution: Encourage them to explain their goal and be proud of their saving. My 14-year-old now tells friends about his smartwatch fund rather than feeling left out.
• Inconsistent amounts
  Solution: We set a fixed “saving portion” of their weekly allowance so the routine is predictable.
• Savings vanish in spending
  Solution: We introduced separate jars/accounts: one for saving, one for spending. Confidence was built when savings stayed untapped for their goal.

Takeaways

• Starting early gives children a head start with money.
• Saving builds positive habits, confidence and goal-setting skills.
• It’s not about huge sums; it’s about kids who save early doing so regularly.
• Model the behaviour, make it visible, and keep the conversations going.
• Equip children with the tools, support and responsibility so they become financially savvy adults.

Conclusion & Call to Action

In a household of five children I’ve seen first-hand how saving early can completely change a child’s mindset about money. The truth is, kids who save early don’t just learn how to manage coins or count pounds, they learn independence, patience, and confidence that lasts a lifetime. When we focus on helping kids who save early, we’re teaching them far more than how to fill a piggy bank, we’re showing them how to build a future they can control.

The habits your children build today will shape how they handle money as adults. Even small routines like setting aside £1 a week can make a big difference. Kids who save early develop a natural understanding of budgeting, goal-setting, and delayed gratification. They grow into adults who feel calm, capable, and in charge of their financial choices.

So tonight, take a few minutes to talk about saving with your family. Pick one goal, decide on a small weekly amount, and celebrate each milestone together. Keep savings visible, keep the conversation open, and remind your children that consistency matters more than perfection.

If you’re ready to start building strong money habits at home, explore our related guide on pocket money tips and how much kids should save. Together, we can raise a generation of kids who save early and grow into financially confident, empowered adults.