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Learn from Elmo: Teaching Kids How to Save

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Children can begin learning about personal finance at a young age, as early as preschool. They should start to learn about the concept of money at this age, otherwise, they may look at money as an infinite resource, causing bad spending habits later in life. There are a number of resources to help them understand the importance of saving.

In this video from Sesame Street, Elmo shows children how to organize the money they have.

Breaking up money into three separate jars is an easy way to help children understand the process of saving. One jar is for saving, one jar is for spending, and another is for sharing, like a charity donation. By separating the saving and the spending, children can learn the value of saving up for a purchase they would like to make.

One way to engage children in this exercise is to have fun jars. Decorate them with construction paper, ribbons, stickers, whatever your child might be drawn to. If they’re allowed to customize the jars, they’ll be more likely to use them and practice their money management.

The best way for children to learn money management is to start practicing at a young age. But where does the money come from? We have a guide to help you figure out an allowance system for your children.

Looking for more videos to help teach your kids about money? Visit our Videos for Kids financial education resource.

Take our poll and let us know about your holiday spending plan! 

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