The start of a new school year offers more than a fresh supply list – it’s also a good time for families to revisit financial habits at home. With rising costs impacting everything from classroom supplies to after-school activities, helping kids understand how money works can set them up for a stronger financial future.
 
Giving kids early exposure to real-life financial decisions helps build a strong foundation. The earlier they learn to budget, save and track spending, the more confident they’ll be managing their own money.
 
Start with a regular allowance – Whether it’s tied to chores or not, allowing kids to “earn” a consistent allowance can be a great way to teach responsibility. Work with them to create a simple plan for how they’ll use their funds, such as dividing it into spending, saving and giving using the three-jar method.
 
Set a savings goal – Encourage your child to save for something meaningful, such as a special toy or upcoming event. Help them break the goal into weekly amounts to show them how savings add up over time.
 
Talk through “needs vs. wants” – Back-to-school shopping is a great time to discuss the difference between needs and wants. Let your child help make purchase decisions based on a set budget.
 
Track spending with a basic tool – Whether it’s a notebook, spreadsheet or app, kids benefit from tracking where their money goes. Parents and kids should monitor transactions and savings growth together.
 
Match their savings – To encourage consistent saving, consider offering a match. For example, adding $1 for every $5 they save. This not only builds motivation but reinforces the long-term value of saving.
 
By teaching basic money habits early, families can help kids build confidence and make smarter financial decisions as they grow.
 
Learn More
For more information on youth savings tools and helping kids build smart money habits, contact your local Iowa State Bank office.
 
 These tips are provided by the Iowa Bankers Association.