Opening Savings Accounts For Kids

Bank on Financial Literacy

We all want our kids to grow into adults who have healthy finances and financial habits--and it’s important that you don’t wait until they’re fully grown to teach them these habits. In fact, the right time to open a savings account for your child might be earlier than you think.

It is recommended that clients open an account once their child meets these three criteria:

1. They are old enough to have a basic understanding of how banks work.

2. They are mature enough to handle money thoughtfully (on an age-appropriate level).

3. They have or receive money.

Generally, an 8-year-old will be able to meet the above criteria to a satisfactory degree. But if 8-years-old feels too early for your child, it’s a good idea to at least get started before he or she becomes a teenager and begins to use money more seriously. 

I recently read a book called, The Opposite of Spoiled, by Ron Leiber in an effort to put a plan around how to teach my 11-year-old daughter about money.  One of the core tools the book recommended for teaching kids about money is the three-jar system—a simple but powerful way to introduce budgeting and values-based decision-making. Here's a breakdown of the three jars and how to use them effectively with young children:

1. Spend Jar

   
   

Concept / Mission:

This jar teaches kids about everyday spending choices, the value of money, and delayed gratification. It allows them to make their own purchasing decisions (within reason), including dealing with the consequences—whether it's buyer's remorse or saving a few dollars on a toy.

How to use it:

• Encourage children to think about what they really want to buy.

• Let them experience the freedom and responsibility of spending their own money.

• Use it as a chance to talk about needs vs. wants and price comparisons.

2. Save Jar

   
   

Concept / Mission:

This jar focuses on setting goals and learning to delay gratification. It helps children understand that bigger or more meaningful things often take time and discipline.

How to use it:

• Have them set a short-term or medium-term savings goal (e.g., a LEGO set, sports gear).

• Help them track progress with a visual tool (like a chart or drawing).

• Use this jar to introduce the idea of planning and patience.

3. Give Jar

Concept / Mission:

The give jar cultivates generosity, empathy, and social responsibility. It helps children see that money isn’t just for personal use—it can help others, too.

How to use it:

• Let the child choose a cause or person they care about—animal shelters, food pantries, etc.

• Encourage them to give in person if possible, so they can see the impact.

• Use it as a chance to talk about values, gratitude, and community.

How to Decide How Much to Put in Each Jar

There’s no one-size-fits-all rule, but a good starting point is:

Spend: 50% | Save: 30% | Give: 20%

You can adjust these percentages based on:

• Your family’s values (e.g., if you strongly emphasize generosity, increase the Give jar).

• The child’s goals (e.g., if they’re saving for something big, allocate more to Save).

• Age and maturity—younger kids may need a simpler ratio like 1/3 in each.

Most importantly, involve your child in the decision-making process. Ask:

• “What’s something you’d really like to save for?”

• “Who or what would you like to help with your Give money?”

• “What are some small things you might want to buy now?”

This fosters ownership and builds lifelong habits.  Raising kids with financial literacy gives them the best opportunity to thrive long-term. It could reduce your stress later on, too.