Teaching Saving Foundations to Early Learners (Ages 3-5)

The piggy bank is one of the simplest, most effective tools for introducing the concept of saving. For preschoolers, a piggy bank is a physical, visible place to keep money, making it easier to understand that setting coins aside means accumulating a “savings.” This visual and tactile experience helps children see their money grow over time, reinforcing the value of saving.

Select a colorful piggy bank that’s easy for your child to open and close. Let them decorate it with stickers, markers, or glitter to make it feel special and uniquely theirs.

• What to Do: Give your child a small coin each time they do a helpful task or demonstrate good behavior. Encourage them to place it in their piggy bank while explaining that every coin they add brings them closer to a “goal” item, like a small toy or treat.
• Learning Outcome: This activity gives children a visual representation of savings growth and reinforces the idea that small contributions add up over time.

If possible, use a clear piggy bank or jar, so your child can watch their coins accumulate.

• What to Do: Place it in a visible location, and each time they add a coin, invite them to shake it or peek inside to see how full it’s becoming.
• Learning Outcome: Seeing their money grow adds excitement and encourages children to keep saving, enhancing their patience and motivation to continue.

Visual saving charts provide a clear, interactive way for children to track their progress toward a goal. Using stickers, drawings, or color-coded levels, these charts break down saving into steps, making it more manageable and motivating.

Create a savings chart where each step is represented by a blank space. Each time your child adds a coin to their piggy bank, allow them to place a sticker on the chart.

• What to Do: Start with a simple goal, like “10 stickers” representing ten saved coins. Explain that when they fill up all the spaces on the chart, they’ll have saved enough to reach a small reward.
• Learning Outcome: Children learn that saving involves consistent effort over time and get a visual sense of accomplishment, helping to build their confidence and understanding of saving.

Draw a thermometer on a piece of paper and divide it into segments. Each segment represents a certain amount of saved money, and as they save, color in the thermometer to show progress.

• What to Do: Each time they add a coin, you can fill in a new section of the thermometer with their help. When the thermometer reaches the top, they achieve a set goal or reward.
• Learning Outcome: The thermometer visually represents their growing savings, giving them a clear indicator of their progress toward a goal and the satisfaction of reaching milestones along the way.

Reward-based games offer instant motivation, reinforcing the concept of saving through positive reinforcement. These games also add a level of fun to saving, helping children view the practice as an exciting and desirable activity.

Create a “treasure box” filled with small rewards, like stickers, crayons, or tiny toys. Let your child know they can “buy” an item with a set amount of coins from their piggy bank.

• What to Do: Set a price for each item and allow your child to “spend” their saved coins once they’ve accumulated enough. For example, a sticker might cost two coins, while a toy might cost five.
• Learning Outcome: Children learn that saving allows them to acquire things they want, helping them connect effort with reward and reinforcing positive saving habits.

Turn saving into a game by letting your child roll a die to determine how many coins to add to their piggy bank. Each roll of the dice brings them closer to a reward.

• What to Do: Each day, let them roll the die and count out that number of coins to place in their piggy bank. When they reach a certain amount (like 20 coins), they can receive a small reward.
• Learning Outcome: The dice-rolling element adds a fun, random factor, while the accumulation of coins teaches delayed gratification as they work toward their reward.

Delayed gratification is a key skill in financial literacy, helping children learn the value of waiting and making mindful choices. Teaching this concept in early childhood lays a strong foundation for future financial behaviors, as they begin to understand that waiting can lead to greater rewards.

For this exercise, offer a small treat, such as a cookie or candy, but let them know they can have two if they wait a little longer.

• What to Do: Place a small treat in front of them and explain that if they wait a few minutes, they can have two instead. Over time, you can gradually extend the wait time.
• Learning Outcome: This activity introduces the concept of waiting for a greater reward, helping them understand that patience can bring better outcomes.

Allow your child to choose a small toy as a “goal,” but explain that they need to save for it over a period of days.

• What to Do: Show them the toy daily and let them know they’re getting closer to earning it as they save. Keep a small visual tracker to help them see their progress toward “buying” it.
• Learning Outcome: Children begin to understand that patience and consistent saving can lead to meaningful rewards, building resilience and self-control.

Goal setting helps children understand that saving has a purpose and that reaching goals requires small, consistent actions over time. Teaching children to set and work toward simple goals instills focus and self-discipline, core components of successful saving.

Ask your child to pick a small item they’d like to have, such as a toy or book. Use this as their savings goal and keep a picture of it near their piggy bank as a reminder.

• What to Do: Set a savings target for the item, such as “five coins” for a small reward or toy. Each time they add a coin, remind them that they’re one step closer to reaching their goal.
• Learning Outcome: Children experience the satisfaction of working toward a personal goal and learn that saving can lead to achieving something they want, helping them see the value in delayed rewards.

For a more abstract goal, create a “savings jar” for family adventures, like a trip to the park or zoo. Explain that saving together helps make fun activities possible.

• What to Do: Encourage your child to add a coin whenever they can, explaining that each contribution helps make the adventure a reality.
• Learning Outcome: This activity introduces the idea that saving can lead to shared experiences and fosters a positive attitude toward collective goal-setting.