By Jenn Dyck, WA529 (Estimated reading time: 3 minutes)
Children’s dreams are as vast as their imaginations—firefighters, veterinarians, teachers, artists, astronauts. Some kids hold tight to these dreams, while others discover new paths as they grow. No matter the journey, achieving those dreams takes planning, effort, and financial preparation. At Washington Education Savings Plans (WA529), we believe it’s never too early—or too late—to start saving for a child’s future.
Even from a young age, children are curious about money. They notice where it comes from, how it’s used, and the habits adults model—like saving or spending. These small moments are perfect opportunities to introduce financial concepts in simple, age-appropriate ways. With creativity and consistency, families can build a foundation of financial understanding that helps children feel more confident about their future.
Start with the Basics
The journey begins with basic money recognition. Showing kids coins and bills and explaining their value is a powerful first step. Children can play matching games with coins, or sort change by size and color. Even pretend shopping games at home can turn into meaningful lessons on how we use money in real life.
Simple, playful activities not only teach money skills—they also spark questions and curiosity. These interactions lay the groundwork for larger financial ideas down the road.
Use Daily Life as a Teaching Tool
Everyday outings provide natural opportunities for financial conversations. A walk to the park may be free, but the gas to get there or parking fees might not be. Grocery trips or visits to the zoo involve spending, and kids can start to understand how different experiences come with different costs.
Another important concept is distinguishing between needs and wants. Understanding this difference shapes healthy spending habits and encourages thoughtful decision-making. It also introduces the value of saving versus spending right away. Books, games, apps, and family discussions can reinforce these lessons and make them fun and memorable.
Children also notice work—both at home and in the community. Talking about how jobs help pay for food, housing, or fun family activities helps them understand how money is earned. These conversations help kids connect effort to income and begin to grasp the value of hard work.
Model Smart Money Habits
Kids are always watching, which is why modeling good financial behavior is so important. When children see adults budgeting, saving, and making careful spending choices, they’re more likely to follow those examples.
As children begin to earn money—through allowances, chores, or birthday gifts—it’s a great time to talk about saving and setting goals. WA529 Director Lynda Ridgeway explains, “Kids learn by watching us. By modeling good money management, like saving for education, we help them develop healthy financial habits for the future.”
Plan for Their Future
Helping kids dream about their future includes planning how to reach it. Talking with them about education and career goals—and how to pay for them—can turn dreams into something they see as achievable. Studies show that when children know someone is saving for their education, they are more likely to pursue it.
WA529 savings plans include the GET Prepaid Tuition Plan and WA529 Invest. GET lets families prepay for a child’s future college tuition at today’s price, protecting against the rising cost of education and WA529 Invest offers flexibility, allowing families to choose from a variety of investment options based on their risk tolerance.
By involving children in saving for their education, parents not only prepare them for what lies ahead—they also give them a lasting sense of confidence and control. It’s a simple but powerful way to support their dreams and help them build a solid foundation for life.
About the Author
Jenn Dyck is a Marketing & Communications Coordinator for Washington State’s 529 Education Savings Plans (WA529). Jenn has a long background working with students and families with young children in her community and local schools. In her free time, she enjoys spending time outdoors, kayaking, and taking road trips with her husband, young adult children, and their English Setter pup!
