How To Teach Your Kids To Save Money

It’s never too early to start teaching children about money. From playing shop, to earning their first dollars doing chores around the house, children start to form money habits from an early age. In fact, children should be able to understand the concept of an allowance by the age of six.

So, why not have them sponge up smart money-management lessons from early on? Teaching your kids to save money can help them develop good spending habits early so they’re better able to set up a financially stable future. Then, they can really start to invest in their piggy bank!

If you’re looking for places to start, put these exercises into practice and start teaching your kids to save today.

Put Saving into Practice

Girl Earning Pocket Money - Cigno Loans

You can’t save money without an income, and you can’t have an income without working! If you haven’t already set up a pocket money system with your kids, put together one that offers a weekly paycheque for completing a few simple chores around the house. Your kids can then start to put money in their piggy bank, and start to understand what it means to save money. You can even divide their money into three categories: spend, save and give. This teaches them to be responsible with their money.

It’s up to you whether you use physical cash, set up a bank account for them, or use both. And if you really want to encourage them to work hard and earn more, offer them a reward for going the extra mile (e.g., spraying air freshener after dusting).

Build Goals (and the Piggy Bank!) Together

Savings Boy - Cigno Loans

Now that your kids have money, they might not yet know exactly what they can do with it. A $10 note could get them a small toy, but a dozen $10 notes (after a few weeks of saving) could get them something much bigger.

Sit down with them and talk about the things they might want to save up for. It could be a ticket to a theme park, a new video game or new sneakers. It’s a fun conversation to have. Get excited with them about the possibilities and map out a savings timeline to show them when they can afford these awesome things. Having a clear goal in mind is one of the best ways to save money for kids.

Lead by Example

Teaching your kids to save money is a long process made up of lots of little lessons – and a lot of the time they’ll learn from their mistakes. But a big lesson you can do today is to share your family budget and savings goals with them. Explain the necessary costs (e.g., weekly groceries, rent/mortgage repayments, health insurance) and show them how you put aside your dedicated savings. And explain why. Are you saving up for a family holiday or a new car? Or maybe you want to have money kept aside in case of an emergency.

Shopping for Lessons

Shopping with Child - Cigno Loans

It can be a hard thing explaining to your kids why you can’t buy everything they pick up at the shops. So, why not put them in your shoes? Get your kids involved in making your next grocery list. Talk about the budget and then, when you’re at the store, ask for their help to find discounts and affordable options for everything.

If you want to know how to teach your children to save money and keep them busy at the shops, this is a great activity. It also communicates why you can’t always buy new toys or the yummiest snacks.

The best money-saving examples are ones that are real and relevant. But you’ll have to put what you say into practice too. That could mean telling them how much you want to buy that cheesecake, but you’d rather save more for the next family trip.

For more money-saving tips, check out the Cigno blog.

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.


Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice –

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat