Survey: Most Parents Teach Their Kids About Saving Money

A 2025 NerdWallet/Harris Poll survey found that 93% of parents with kids under 18 are actively teaching their children about saving money. That’s a massive shift from previous generations: 20% of baby boomer parents never covered the topic at all. But here’s what the raw numbers don’t tell you: the how of teaching kids about money is changing fast. In 2026, parents have more tools, more cultural openness around finances, and frankly, more financial complexity to prepare their kids for.

Why 2026 Is a Different Financial World for Kids

Your children are growing up in an era of tap-to-pay, cryptocurrency ads during Saturday morning YouTube, and “buy now, pay later” buttons on every online store. The physical experience of handing over cash and receiving change is increasingly rare.

That context matters. The same survey showing most parents teach their kids about saving money also revealed that 38% of parents still use physical tools like piggy banks and savings jars, while 28% have shifted to digital trackers. The gap between those two numbers is shrinking every year, and 2026 may be the year digital-first money education becomes the norm.

Kids who only understand money as a number on a screen may struggle with the emotional weight of spending. And kids who only handle cash might be unprepared for how money actually moves in their adult lives. The sweet spot is somewhere in between.

What the Survey Actually Found (The Numbers That Matter)

Here’s a quick breakdown of how parents of children under 18 are teaching savings habits, according to the NerdWallet survey:

A few things jump out from this data:

• Goal-setting leads the pack. Nearly half of parents focus on helping kids identify what they’re saving for, which is arguably the most important habit to build.
• Only 37% discuss family finances. That number feels low. Kids pick up on financial stress whether you talk about it or not. Controlled, age-appropriate conversations give them context instead of anxiety.
• Digital tools are still underused. Given that most kids interact with screens daily, 28% suggests there’s room for growth here.

The Piggy Bank vs. the App: Which Actually Works Better?

This isn’t an either/or question, but parents tend to treat it like one. Here’s how the two approaches compare in practice:

For younger kids, there’s real value in the tactile experience of dropping coins into a jar. A five-year-old who can see their money pile growing understands cause and effect in a way that a progress bar on a screen can’t replicate.

But once your child is around eight or nine, a kids’ banking app or a joint savings account starts making more sense. They can see interest accruing (even if it’s small), practice digital transactions, and learn how real bank accounts work before they’re managing one solo.

One warning about kids’ banking apps: some charge monthly fees of $2 to $5 and don’t pay any interest. Before signing up, do the math. If your child has $50 in savings and the app charges $3/month, they’re losing money. That’s the opposite of the lesson you’re trying to teach.

How the Allowance Strategy Has Evolved

The survey found that 40% of parents give their kids an allowance as a savings teaching tool. But the 2026 version of allowance looks different from the envelope-of-cash approach many of us grew up with.

Here’s what’s working for families right now:

1. The three-bucket system. Split allowance into Save, Spend, and Give categories. Some parents use a 40/50/10 split; others let kids choose their own percentages. The point is building the habit of not spending everything immediately.
2. Allowance loaded onto prepaid cards. Several apps now let parents load weekly allowance onto a card their child can use at stores. The child sees their balance decrease in real time, which creates a much stronger connection between spending and losing money than swiping a parent’s card.
3. Matching contributions. A few parents have started “matching” their child’s savings, similar to a 401(k) employer match. If your kid saves $5 from their allowance, you add $2.50. This teaches the concept of incentivized saving early.

The survey also found that 31% of parents require their kids to save a specific portion of any money they receive. This is a solid approach, but consider letting your child have some input on the percentage. Kids who feel ownership over the decision tend to stick with the habit longer than those who feel it’s imposed on them.

The Conversation Most Parents Are Avoiding

Only 37% of parents discuss family finances with their children. That number has likely ticked up since the survey was conducted, but it’s still surprisingly low.

Here’s the thing: you don’t need to show your kids your bank statements or stress them out about mortgage payments. Age-appropriate financial transparency can be as simple as:

• For ages 5-7: “We’re saving up for our vacation this summer. Every week, we put a little money aside for it, just like you’re saving for that LEGO set.”
• For ages 8-12: “Our family has a budget. That means we decide ahead of time how much money goes to food, our house, fun stuff, and saving. Want to help me plan what we do with the ‘fun stuff’ budget this month?”
• For ages 13-17: “Here’s roughly what our monthly expenses look like. This is why I say no to some purchases and yes to others. What questions do you have?”

The goal isn’t to make your kids worry. It’s to demystify money so they don’t enter adulthood thinking finances are some mysterious force they can’t control.

Let Your Kids Make Bad Purchases (Seriously)

This might be the most counterintuitive piece of advice, but it’s one of the most effective. When your child saves up $15 and wants to blow it on a cheaply made toy that you know will break in two days, let them.

Buyer’s remorse is one of the best financial teachers available, and the tuition is cheap when you’re eight years old. A $15 lesson about evaluating quality before purchasing is a bargain compared to the $1,500 version of that lesson at age 25.

After the regret sets in, resist the urge to say “I told you so.” Instead, ask questions:

• “How do you feel about that purchase now?”
• “What would you do differently next time?”
• “Is there a way to figure out if something is worth the money before you buy it?”

These conversations build critical thinking skills that compound over time. And depending on the item, it might also be a good moment to explain return policies: another real-world skill most schools don’t cover.

A 15-Minute Setup That Pays Off for Years

If you haven’t started teaching your kids about saving yet, here’s a low-effort way to begin this week:

1. Pick one method from the survey data that fits your child’s age. Piggy bank for little ones, savings account or app for older kids.
2. Set one savings goal together. Make it specific and achievable within 4-8 weeks.
3. Decide on a weekly check-in. Five minutes every Sunday to count the jar or check the app balance.
4. Talk about one of your own financial goals. Keep it simple and positive.

That’s it. You don’t need a curriculum or a finance degree. Consistency matters more than perfection here.

Red Flags That Your Approach Might Need Adjusting

Watch for these signs that your money lessons aren’t landing the way you intend:

• Your child seems anxious about money rather than curious. Scale back the complexity of what you’re sharing.
• They hoard every penny and refuse to spend on anything. Saving is great, but an unhealthy relationship with spending can develop too. Reinforce that spending on things they value is perfectly fine.
• They show zero interest in their savings goal. The goal might be too far away or not meaningful enough. Help them pick something they genuinely want.
• They think money is unlimited because they only see digital transactions. Reintroduce some cash-based experiences so they can feel the finite nature of money.

Frequently Asked Questions

What age should you start teaching kids about money?

Most child development experts suggest starting around age three with basic concepts like identifying coins and understanding that items in stores cost money. The NerdWallet survey didn’t break down results by the child’s age, but 38% of parents using physical tools like piggy banks suggests many are starting with young children. You don’t need formal lessons: everyday moments like grocery shopping offer natural teaching opportunities.

Should allowance be tied to chores?

This is genuinely debated among financial educators. Some argue that tying allowance to chores teaches the work-for-pay relationship. Others believe chores should be expected as part of family responsibility, and allowance should be a separate tool for learning money management. There’s no single right answer. Consider your family’s values and what lesson you most want to reinforce.

How much allowance is appropriate in 2026?

A common guideline is $0.50 to $1.00 per year of age per week. So a ten-year-old might receive $5 to $10 weekly. Adjust based on your cost of living and what expenses you expect the child to cover with their allowance. If they’re buying their own snacks or small entertainment, the amount should reflect that.

Are kids’ banking apps worth the monthly fees?

It depends on the app and your child’s age. If an app charges $3 to $5 per month but offers meaningful educational features, savings goal tracking, and parental controls your child actually uses, it could be worthwhile. But if your kid has a small balance and barely opens the app, you’re better off with a free joint savings account at a bank or credit union. Always check whether the app pays interest on balances: many don’t, which undermines the saving lesson.

Note: This article provides general financial education information, not personalized financial advice. Consider consulting a financial advisor for guidance specific to your family’s situation. Survey data referenced was collected by The Harris Poll on behalf of NerdWallet in March 2025, with a sample of 2,046 U.S. adults including 580 parents of children under 18.