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School’s Out: Teach Your Kids About Saving This Summer

Learning to save can help ensure a fun summer and an important life lesson.

While school may be out for summer, that doesn’t mean the learning has to stop. The long, fun-filled days of summer offer perfect opportunities to teach kids about money, specifically around the value of saving.


Despite what your kids’ initial reactions may be, learning to save doesn’t mean you have to sacrifice fun. In fact, it can be encouraging for them to end the summer with savings for the year ahead. To get started, consider these options for teaching your kids about saving this season.

Teaching Teens to Save

Most teens are ready to start earning and managing some money of their own. And summertime offers them more free time to earn and develop habits of saving, spending, and making informed money decisions.

  • Learn to Earn. Encourage your teen to earn money this summer, whether it’s through a consistent summer job at the local ice cream shop or more sporadic work like mowing lawns for neighbors or babysitting kids while parents are working.
  • Start to Save. Now that they are making money, your teen needs a place to save it. Shop around together to find a bank account that is right for them. Consider opening a high-yield savings account to help your teen earn more interest on their money. For a child under 18, a parent can open a Growth Savings account for the child, naming the child as a beneficiary to start them on their savings journey.

    Use the process of selecting a bank account to help your teen understand the differences between different accounts. For example, a checking account provides easy access for spending through a debit card or checks, but typically earns little, if any, interest. A savings account, on the other hand, pays higher interest and if your teen keeps their money in the account over time, they will earn compounding interest, which is interest on the interest earned in previous months. Forbright Bank’s savings calculator makes it easy for you and your teen to see how the compounding rate can help their money grow.

    If you open both a checking and a savings account for your teen, encourage them to create saving and spending goals for the money they earn this summer, potentially putting a consistent percentage of each paycheck into savings or transferring over an amount from checking to saving after every pay period.
  • Manage Money Online. Your teens may be on the go all summer, and mobile banking apps can make it easy for them to have a constant financial awareness wherever they go. Teach them to take advantage of mobile banking and text alerts on their bank’s app to track their spending and be aware of their balance and outstanding payments.

Teaching Younger Kids to Save

Most of us learn best through life experience, and kids are no different. Use the summer to give your younger kids some authentic experiences with money to start teaching habits of saving.

  • Earn Money. Help your younger child determine opportunities to earn some money, whether you offer an allowance (earned by doing chores around the house) or encourage them to get creative, like opening a lemonade stand or completing a chore for a neighbor. This will help get your kids engaged in spending and saving – and proud to have earned the money themselves.
  • Set a Goal. Encourage your kids to set a savings goal for the end of the summer, such as saving enough to buy a special toy. Make it fun by allowing them to cut photos from catalogs or magazines to post reminders of their goal somewhere they can see it often.
  • Spend Wisely. Talk to your kids about the differences between needs and wants, and how to divvy up their allowance between spending and saving. A good rule of thumb is to save at least 10%, but they may want to save more based on what their goals are. Throughout the summer, make sure to have your kids pay for some of the things they want, such as ice cream or movie tickets, from their allowance. Encourage them to plan.

Learning to Save as a Family

Most destinations offer a variety of accommodations, and the one you choose will significantly affect your budget. For example, if you’re going to a theme park, you may be able to save by staying at an unaffiliated hotel down the street versus paying premium rates to stay at a hotel on the property.

Also, if your accommodation includes a kitchen, you might save money by cooking a a few meals versus than eating out throughout the trip.

Look for free or inexpensive activities.

For kids of all ages, you can make saving a family activity by incorporating money lessons into meaningful shared experiences.

  • Discuss Savings Goals. As a family, take time to discuss what’s worth saving for, whether it’s a special purchase or a fun new experience. Listen to your kids’ ideas and involve them in setting up savings goals for the whole family, whether it’s eating in one more night a week or finding more affordable activities for everyone to enjoy.
  • Plan Travel Together. If your family plans to take a summer vacation, include the kids in the planning process. Share a solid budget figure and let the whole family work together in choosing how best to spend the budget, including accommodations, travel, excursions, and meals. The kids may have to choose, for example, between the pricier hotel with the amazing pool and an extra day at a theme park. It’s a good way to reinforce the lessons of needs versus wants.
  • Start a Savings Challenge. Turn saving into a friendly competition by setting up a family savings challenge. Each family member can create a savings goal for the summer, whether it’s for a small purchase or a family outing everyone can enjoy together. Track progress on a chart or whiteboard where everyone can see. Celebrate milestones and encourage each other to stay committed to their goals. This fosters a supportive environment and reinforces the value of saving as a family.

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.

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