5 Ways to Teach Kids About Money This Holiday Season

The holiday season is an exciting time for kids, not just for the festivities, but also (or mostly) for the gifts—including money. It should also be an exciting time for parents because this holiday money can be an excellent tool for teaching young children about important financial concepts like saving, investing, and borrowing. Here are some creative ways to turn holiday cash into valuable life lessons.

5 Ways to Teach Kids About Saving, Investing, and Borrowing Using Their Holiday Money

Savings jars

There are plenty of ways to teach kids about saving, but the three-jar method is arguably one of the more interactive ones. It also helps visualize the action, making developing it into a habit easier.

Idea: Divide holiday money into different jars labeled “Save,” “Spend,” and “Share.” You can start this activity with the holiday money and then continue with money from their allowance, gifts, or rewards for certain chores or achievements.

How It Works: Give your child three jars. Explain that the “Save” jar is for future goals, the “Spend” jar is for immediate desires, and the “Share” jar is for charitable giving. This visual and hands-on method helps children understand the importance of saving a portion of their money while also enjoying some and giving back to the community.

Activity: Let your child decorate the jars to make the activity more engaging. Periodically, discuss the balance in each jar and help them set savings goals, like buying a toy or donating to a cause they care about.

Play money market

Investing is one of the more overlooked concepts when teaching kids about money. Truth be told, many adults are reluctant to learn about it because it can be intimidating. This game helps prevent that reluctance by simplifying how the stock markets work. The earlier they learn about it, the more time they’ll have to invest and grow their money.

Idea: Create a simple, pretend stock market at home.

How It Works: List “stocks” representing favorite toys, brands, or even household items. Give your child a set amount of play money (or holiday money) to invest in these “stocks.” Over time, track the value of these stocks together, showing how investments can grow or shrink.

Activity: Each week, change the stock values based on fictional news you create (e.g., “Toy Company A released a new product, so their stock goes up!”). This helps children grasp the concept of investing and market fluctuations.

Borrowing and lending game

Understanding that money doesn’t grow on trees, as they say, is one of the most important early financial lessons a child can learn. This game shows them that money is a finite resource and teaches them the responsibility to spend and manage borrowing.

Idea: Teach the basics of borrowing and lending through role-playing.

How It Works: Set up a scenario where your child wants to buy something but doesn’t have enough money. You can lend them the amount they need, explaining that they will have to pay it back with small “interest” over time.

Activity: Use a simple ledger to track the loan and repayments. This can be an ongoing game where you periodically ask them to “repay” a small portion of their holiday money. Discuss the importance of borrowing only what they can repay and the concept of interest.

Savings goals chart

Like the three-jar method, this game helps visualize putting money aside. This game also helps gamify the action and boost their motivation by adding goals and milestones.

Idea: Visualize savings goals with a chart.

How It Works: Create a chart with your child that outlines specific savings goals (e.g., buying a new bike or saving for a trip). Each goal has a target amount and a timeline. Whenever they save money, fill in the chart to show progress.

Activity: Use stickers or colors in chart sections as they save more money. This visual progress can be highly motivating and helps them understand the value of setting and working towards financial goals.

Holiday money matching

Help them develop the habit of saving by offering an incentive. You can up the ante by making your savings similar to a time deposit that earns interest.

Idea: Encourage them to save more by matching the amount.

How It Works: Offer to match a portion of what they save from their holiday money. For example, you add an extra cent for every peso they put into their savings jar. This incentivizes saving and shows the benefits of growing their savings.

Activity: Set a matching goal, like saving PHP 2,000 to get an additional PHP 500 from you. Make sure you celebrate when they reach their goal to reinforce positive behavior.

Making learning about money fun

Teaching children about savings, investing, and borrowing doesn’t have to be tedious or complex. By using their holiday money creatively, you can instill important financial principles in a fun and engaging way. These lessons will set the foundation for sound financial habits that can last a lifetime.

To kickstart their savings journey, open an account designed for kids like the Metrobank Fun Savers Club. Happy learning!