Should You Save Money for Your Kids?

Explore the question: Should you save money for your kids? Discover the benefits of establishing savings for their future.

Should You Save Money for Your Kids?

Many people only have money when they get a job and start earning it. They can build their own bank accounts, establish savings, and, eventually, set up a comfortable life for themselves.  However, our bank accounts don’t have to start at $0 when we’re old enough to start earning our own money. It begs the question: should you save money for your kids? Here’s why it can be worthwhile: 

Help Them Pursue Further Education

When you establish an Education Savings Plan or create a bank account for your child, you can make it easier for them to pursue further education if they decide to do so. Post-secondary education can cost tens of thousands of dollars, and not everyone has enough money set aside or is willing to commit to a decades-long student loan. Saving money for your children’s educational future can limit the barriers that may otherwise be in place. 

Provide Financial Security 

Just as we can encounter financial challenges throughout our early years, so can our children. From broken-down cars and home repairs to healthcare bills and late rent payments, there can be many unexpected expenses. 

 

While your child is still establishing their own savings accounts, you can bridge the gap with money you’ve set aside for them over the years. Your children are bound to appreciate the support when they need it the most. 

Help with a House Down Payment

The average down payment on a house in the United States is over $50,000 as of 2025. When the federal minimum wage is a mere $7.25 an hour, it can take a considerable amount of time to save toward. If you want your child to be better positioned to buy their own home in the future, consider saving money for them from a young age. Even just $10 a week for 18 years could provide your child with an almost $10,000 head start toward their down payment. 

Encourage Financial Literacy

Children learn from watching their parents. If they can see you actively saving, budgeting, and investing, they can be better equipped to follow in your footsteps. This can also allow for generational wealth. A child with a healthy financial foundation to work from may be better able to provide the same for their future children. 

Reduced Borrowing Dependency

Credit cards and personal loans can be helpful, but their high interest rates can lead to significant financial trouble. The average credit card debt amount in the United States in 2025 was over $6,400. 

With an average interest rate of 22.25%, this can result in repayments of nearly $8,000. If you have saved for your child’s financial future, it may mean they’re able to borrow or obtain money from your savings account, rather than from an interest-charging financial institution. 

Offer Freedom of Choice

The sad reality is that not every child, teenager, or adult can pursue new opportunities or their passions due to financial constraints. A savings account can make it possible. With a financial buffer, it can be easier to say yes to opportunities that require an investment, like travel, out-of-state events, and unpaid work or educational experiences. 

While you don’t have to save money for your children, it can be worthwhile to set them up for a healthy financial future. Ponder these benefits above and start exploring your savings options.