It’s never too early to teach your child the value of money. Kids may not have bills or budgets yet, but developing smart saving habits at a young age lays a strong foundation for confident, capable financial decision making later in life.

Whether your child tends to stash every dollar or spend it all at once, a few simple strategies can help build healthy habits that stick. Here are four practical ways to build a foundation for raising a money-smart kid.

1. Ditch the Piggy Bank

Piggy banks are classic and fun, but they don’t let kids see their money grow. Using a clear jar or even multiple jars for “save” and “spend,” makes the concept of saving more visual. The ability to watch savings grow can be a big motivator to continue the habit. For most of us, no matter our age, seeing is believing. Using visual cues can help associate saving money with progress and accomplishment rather than feeling restricted.

2. Understand Their Money Personality

Everyone has a natural tendency when it comes to money habits. Some people are born savers stashing away every dollar, while others will spend it the second it hits their hands. Knowing your natural tendency, and that of your child, is an important starting point. For spenders short-term goals may be more motivating than long-term. For savers, you can use positive reinforcement for wise spending to alleviate anxiety about money. Working with your child’s natural tendencies instead of against them can go a long way to build positive habits that stick.

3. Help Set Savings Goals

Savings goals are often age dependent. Long-term savings goals like college or buying a car may be too intangible and may not resonate with younger kids. Start small by choosing something they care about such as a toy, a game, or a special outing and help them achieve it through saving. Helping a child connect savings with something that is rewarding and important to them makes the habit feel worthwhile.

4. Put Them in Charge

Giving your child responsibility over their money is one of the best ways to teach smart financial decision-making. Set clear boundaries but give them the responsibility and control over how they use their allowance or gift money. You might be surprised at how a child’s mindset and decisions change when they are in control. A sense of ownership can make children think more carefully about how they spend their money. Giving them responsibility helps build confidence and teaches the cause-and-effect nature of money choices.

Financial responsibility is one of the most valuable life skills you can teach a child. Smart saving isn’t just about pennies in a jar, it’s about building confidence, responsibility, and a healthy relationship with money. By making saving visual, tying it to their interests, giving them responsibility, and having open communication about money, you’re teaching your child skills that will last a lifetime.

With a little guidance, they’ll grow into confident, thoughtful savers—ready to handle money wisely for years to come.