Save, Spend, Share

How dividing money into jars or accounts for saving, spending and giving teaches children to balance needs, goals and generosity.

A simple and popular method for teaching children about money is to divide it into three jars: Save, Spend and Share.

How it works

Each time a child receives money, they split it among the jars. For example:

Save: 40 percent, for bigger goals.
Spend: 50 percent, for small everyday purchases.
Share: 10 percent, for giving to others.

The exact shares can be decided together.

The Save jar

Helps children work toward goals, like a bicycle or a game.
Teaches patience and planning.
Older children can move savings into a bank account and see interest added.

The Spend jar

Gives children freedom to make choices and learn from them.
Teaches that when the jar is empty, spending stops.

Encourages generosity: donating to a cause, buying a gift or helping someone in need.
Connects money to values and community.

In many Indian families, giving during festivals or at places of worship offers natural opportunities to use the Share jar.

Making goals visible

Draw or print a picture of the goal and stick it on the Save jar.
Mark progress on a chart.
Some parents offer a small match for savings, like a bonus, to teach how employer contributions or interest work.

Moving to digital

As children grow, the jars can become separate bank accounts or wallet categories, keeping the same principle of dividing money by purpose.

Why it works

The method mirrors good adult money habits: paying yourself first, spending within limits and giving. It’s a practical form of mental accounting that helps children manage money.

The bicycle goal

A nine-year-old wants a bicycle costing 4,000 rupees. She puts 40 percent of her pocket money and gifts into her Save jar, and her parents add 10 rupees for every 100 she saves. After eight months, she buys the bicycle and feels proud she earned it.

Thinking saving means never spending

The jars teach balance: saving for goals, spending wisely and sharing with others.

Key takeaways

Divide money into Save, Spend and Share jars.
Save builds patience and goals; Spend teaches choices; Share builds generosity.
Visible goals and small matches motivate saving.
The jars can later become bank accounts or digital categories.