Spend, Save, Give: How to Teach Kids Budgeting with Jars (Parent Guide)
Budgeting is not a “numbers skill” first. For children, it is a concrete skill. They must be able to touch, see, and divide money physically to learn it. A simple and effective system is the Spend–Save–Give jar method: one jar for spending, one for saving, and one for giving. There is no one-size-fits-all percentage split. The split should match your child’s real needs and context. Over time, the system builds discipline, delayed gratification, and healthier money values.
Human oversight disclaimer: This article is based on real parenting experience and financial literacy training. It is educational, not financial advice.
Why budgeting must be physical for children (not digital)
When adults learn budgeting, we can learn it through concepts, apps, and spreadsheets.
Children can’t.
Children need concrete learning:
They need to touch money
They need to see money
They need to move money
They need to split money with intention
That is why I always recommend starting with a physical system.
Not because digital systems are bad. But because digital systems are usually too abstract too early.
If you want your child to learn budgeting, don’t start with “tracking”.
Start with dividing.
The simplest budgeting system: Spend / Save / Give
The goal of the jar system is not to make your child perfect with money.
The goal is to teach your child one powerful truth:
Money has different jobs.
And a child can learn this job assignment through just three compartments.
What you need (and what works best)
This can be:
jars
envelopes
boxes
cups
It doesn’t matter.
But it must be physical.
It must also be:
clearly labelled (“Spend”, “Save”, “Give”), OR
colour-coded if your child cannot read yet
Then you reinforce the meaning with repeated action. That’s how children learn.
What each jar means (and how to explain it)
Jar 1: Spend
Spend is for exchanging money for:
things your child needs
things your child wants
This is the jar where most children will feel the strongest pull, because spending gives immediate reward.
So Spend is not the “bad jar”. It’s the training jar.
Jar 2: Save
Save is for:
rainy days
bigger goals
longer-term wants
This jar teaches patience and planning.
But saving must feel meaningful, or it becomes torture.
Jar 3: Give
Give teaches a deeper money lesson:
Money is a tool to do good.
This helps children not get emotionally attached to money as if it is the final goal in life.
Should parents use a fixed percentage split?
Many well-meaning systems recommend fixed splits like:
50/30/20
60/30/10
70/20/10
Personally, I do not prescribe fixed percentages.
Because money education must match:
your child’s age
your child’s needs
the amount your child receives
the child’s real spending environment
The better question to ask
Instead of asking:
“What’s the correct percentage?”
Ask:
“What does my child need to learn next?”
Example:
If your child receives $2 and genuinely needs $1.50 for food, then don’t force an “ideal percentage”.
Let the split serve reality:
$1.50 → Spend
$0.10 → Give
$0.40 → Save
That’s budgeting.
Budgeting is not perfection. Budgeting is decision-making.
Singapore constraints parents must address (or the jar system breaks)
1) Cashless spending removes “money pain”
In Singapore, more children are spending through:
POSB Smart Buddy / watches
linked bank accounts
cards and mobile payments
Cashless spending makes money feel invisible.
So where possible, especially for younger kids:
✅ start with cash
✅ use jars
✅ let money be seen and felt
Then gradually introduce digital methods when your child shows:
foresight
planning
restraint
2) Parents topping up after overspending
If a child overspends and the parent tops up immediately, the child learns:
“consequences don’t exist”
Where possible, let them bear the consequence.
Not cruelly.
But realistically.
That’s how money becomes real.
3) “Small treats” like 7-Eleven cravings
Children love simple joys like Slurpees, snacks, small toys.
This isn’t the enemy.
This is the training ground.
Let them buy it — but let them buy it from their jar system.
That’s how impulse becomes a decision.
How to stop impulse spending (without scolding)
The first method is also the hardest method:
Parents must model delayed gratification
Children don’t just listen to what we say.
They absorb what we do.
So I practise this openly in front of my children:
I see something I want
I say out loud: “That looks really nice. I want it.”
I choose not to buy it immediately
I wait 24 hours
I check whether I have allocated budget for it
If I don’t, I save up for it over time
This teaches a skill far more powerful than budgeting:
Restraint is trainable.
The 24-hour rule (simple and effective)
“Not today. I’ll think about it first.”
“If I still want it tomorrow, we revisit.”How to make saving exciting (so kids don’t give up)
Saving fails when it feels:
meaningless
too slow
too far away
So we make saving visible and rewarding.
The “Goal is here but not yours yet” method (Smiggle pencil case story)
In my family, my youngest son wanted a Smiggle pencil case (think Minecraft, spaceship type, where the pencil cases has many compartments and feels like a robot, super cool!)
We could afford it.
But we didn’t want him to think that desire equals instant ownership.
So we bought it on sale, placed it visibly at home, and told him:
“This is your goal. It’s within reach. But you own it only after you pay what we paid.”
He tracked his money daily.
He saw the number grow.
And when he reached the target, we celebrated the effort — not the object.
That process teaches:
discipline
compounding effort
delayed gratification
earned confidence
How I teach “Giving” without forcing guilt or resentment
In my family, giving has a religious slant.
I’m Christian, and I believe resources come from God.
But I also understand not every family shares that faith.
So here is the principle in a way that applies to everyone:
Giving trains your heart to hold money loosely.
Is giving compulsory?
In my family, yes — we expect giving to be consistent.
But we do not force a child to give only to where we choose.
They can give to:
church
charities
causes they care about
people in need (including the Singapore context of tissue sellers)
Sometimes even adults struggle with giving.
I’m still learning too.
But I want my children to learn that:
money is not the purpose. money is the tool.
Scripts parents can use (Singapore-friendly)
When your child says: “Why must I save? It’s my money.”
“You can spend it. It’s your choice.”
“But remember last time you had no money when you needed it?”
“Saving is how you protect future-you.”When your child says: “I want it NOW.”
“If you have your money now, you may choose.”
“But if you want me to buy it, my answer is no.”
“My money is my responsibility, and your money is yours.”When your child says: “Giving is stupid. I don’t want.”
“I understand. Adults feel that too sometimes.”
“But we give because we are blessed, and money can make lives better.”
“I want you to feel the joy of helping someone.”A true story: the system gives hope (even for financially underprivileged youth)
A few years ago, I ran a financial literacy workshop for underprivileged youths.
One participant implemented a simple system:
set funds aside
keep it out of sight
automate it consistently
Over time, they accumulated far more money than they thought possible.
It wasn’t magic.
It was a system.
And what they learnt was powerful:
When a system is in place, success becomes predictable.
That’s what parents must remember.
Your child won’t change overnight.
This is not a one-week fix.
This is a long journey.
But as long as you don’t give up, your child will grow.
Closing: The real win is not the jars — it’s the identity
The jar system is not just about money.
It is character training:
responsibility
discipline
delayed gratification
generosity
Budgeting is not a skill children learn once.
Budgeting is a value children live for life.
If you want your child to grow up financially capable, start simple. Start physical. Start consistent.
Because in the end:
“We don’t rise to the level of our goals.
We fall to the level of our systems.”James Clear, Atomic Habits