John Csiszar

Tue, Jun 10, 2025, 7:00 AM4 min read

Teaching your kids the value of money is one of the most important lessons you can offer. Starting children on savings and investment programs while they are still young can provide lifelong benefits, from learning how to budget and live beneath their means to the power of compound interest.

While you shouldn’t deceive your children about what it means to save and invest, you may have to “trick” them into being interested, particularly at a young age. Here are some steps you can take to get them on the right path.

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One of the best ways to get children interested in saving at an early age is to let them actually see their money grow. You can accomplish this by setting aside their savings in a glass jar or other easily visible “safe.” Seeing their money grow over time right in front of their eyes can be an exciting way to start the saving/investing process.

Children generally respond well to rewards and incentives. Encourage your kids to save and invest by perhaps trading off some household chores, gadget time or a treat they’re really looking forward to.

For example, you might offer to take your kids to the movies, the park or somewhere they really want to go in exchange for saving $500. Tailor the process to your specific household dynamics for the best effect.

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One great way to put your kids on a path to millionaire status — and give them some real-world experience as well — is to create your own 401(k) “match.” Every year, or perhaps even every month, make a deal with your kids that you’ll match a portion of their own savings, just like they will experience if they ever get a 401(k) of their own with an employer.

For example, if your kids sock away $1,000 in a year, offer to contribute an additional $100, $500 or even $1,000. This teaches your kids what to expect from a real-world 401(k), incentivizes them to save more and helps boost their account values at an early age, giving them the chance for lifelong compounding.

The more interesting you make saving and investing for kids, the more likely they’ll engage. One strategy to turn money-saving from a chore into a joy is to have them invest in companies that they know. Whether through paper trading or investing their actual money, kids are more likely to get excited if they own companies that they’re already familiar with.