Build early habits with a simple, visible system
The simplest way to help kids build strong money habits is to make saving visible, routine and connected to real‑life goals. Start by talking about money in plain language: what it is, how your family earns it, why we save it, and the difference between needs and wants.
Kids learn best by doing, so create hands‑on rituals—like a weekly “money check‑in”—to count savings, celebrate progress and decide what to do next. A clear jar or envelope system is ideal for young savers because they can literally see money grow. You could label three containers “Spend,” “Save,” and “Give.” When allowance or chore money comes in, guide them to split it—often 70/20/10 or 60/30/10 works, but pick a mix that matches your family’s values and your child’s goals. Tie saving to something concrete and time‑bound. If your child wants a new soccer ball or a birthday gift for a friend, help them price it, estimate how many weeks of saving it will take, and post a simple tracker on the fridge. This turns abstract concepts into a motivating roadmap!
Reinforce consistency with small, repeatable habits: set a “pay yourself first” rule for any new money, drop spare change into the save jar together, and review progress at the same time each week. As your child grows, broaden the conversation. Introduce the idea of interest—money earning money—and the benefits of banks: safety, records and goal‑tracking tools. Explain how bank accounts keep money secure and can encourage saving versus spending. You can show examples of educational resources to spark curiosity from reliable sources like FDIC Money Smart for Young People.
It's also important to celebrate smart choices, reframe mistakes as lessons and model the behavior yourself—kids notice when adults set savings goals and stick to them. The goal isn’t perfection; it’s steady progress and confidence. A visible system, simple routines and supportive conversations lay the foundation for a lifetime of smarter money decisions.
Choose the right youth accounts and digital tools
Once your child understands the basics, it’s time to connect their jars to real banking tools designed for youth. Dedicated, kid-friendly savings and checking accounts can reinforce good habits and introduce responsibility in small, safe steps. Start with easy wins. At Extraco, you can open Extraco's First Checking and First Savings accounts for your kids directly online.
With Extraco's bundle checking and savings accounts, you have parental visibility into accounts balances and activity. You also can set spending and withdrawal limits based on the goals you and your child have set! Explore our Banking For Kids page to learn more about the different features of each First Checking and First Savings accounts.
You can use Extraco's digital tools and use automatic transfers—say, $10 from First Checking to First Savings each week—to remove friction and make saving the default. With Extraco's First Checking account, your child receives a debit card. In addition to the parental controls you have, you should set clear rules for where and how it can be used, and review transactions together. Extraco's eBank app and our digital tools help make learning interactive. Using our spending budget tool, you can sit together and look for patterns: Is an allowance being spent right away, or does it stay in savings until a goal is met? Use those insights to adjust allowance splits or transfer amounts.
Importantly, keep data privacy and safety front and center. Teach kids to protect account numbers, use strong passwords, and never share personal information in apps or texts. Walk through what to do if a card is lost, a suspicious charge appears, or a scam message arrives. Inside of Extraco's eBank app, you can easily manage your debit cards and dispute fraud charges. With the right digital habits, kids quickly see that saving is simple, secure and satisfying.
