The Psychology of Saving: Why Kids Struggle to Wait for Rewards

Children naturally lean towards instant rewards—choosing something right away instead of holding out for something better later. This tendency, known as the “delay of gratification”, sits at the heart of saving.

Understanding why waiting is difficult helps parents, teachers, and Smartmonies design smarter strategies to support children in building lifelong saving habits.

What the UK Research Says

1. Deprivation and Impulsivity

• A UK study of children aged 4–12 found that those from the most deprived areas were significantly more likely to choose smaller, immediate rewards compared to children from more affluent areas.

• This highlights how environment and background can strongly influence financial behaviour.

  
  

2. The Power of Regret

• Research with 6–7 year olds showed that children who felt regret after picking the smaller option were more likely to wait for a bigger reward the next time.

• Emotional experiences like regret can therefore be powerful teaching tools for saving.

  
  

3. Trust Matters

• Children are more willing to wait if they believe that promises will be kept. If a child has seen adults follow through consistently, they are more confident that waiting will pay off.

  
  

4. Age and Development

• Self-control improves with age. Younger children’s brains are still developing the “executive functions” that make waiting easier. This means patience is partly learned over time.

  
  

5. UK Kids and Saving Today

• A 2024 GoHenry survey found that over 40% of UK children aged 6–18 said the pandemic and cost-of-living crisis had made them more likely to save for big life events.

• Some young savers had already set aside as much as £1,500 for long-term goals, showing that with the right support, kids can think ahead.

  
  

Why Waiting Feels So Hard

• Present Bias: Kids value “now” more than “later,” even when the future option is bigger.

• Scarcity Mindset: In uncertain or financially stretched households, taking what’s available now feels safer.

• Emotional Regulation: Resisting temptation requires strong self-control skills that are still developing.

• Social Influence: Children are more likely to wait if their friends are doing the same or if the adult setting the task is seen as reliable.

  
  

What Parents and Teachers Can Do

• Start Small: Encourage short waiting periods first, then gradually extend them.

• Use Visuals: A savings jar or chart helps children see their progress.

• Make It Reliable: Always follow through on promises—trust builds patience.

• Turn Regret Into Learning: Talk about “what could have happened” when a child misses out by choosing too soon.

• Model Saving: Show how you wait and save for bigger purchases yourself.

  
  

Final Thought

Learning to wait for rewards isn’t easy—but it’s one of the most important skills children can develop for their financial future. With the right guidance, UK children can move from “I want it now” to “I’ll save for something even better later”—a mindset that will benefit them throughout life.

Ready to Level Up Their Financial Skills?

📘 Book a Smartmonies lesson today and help your child begin building essential financial skills for life.

🎁 Use code SMARTSAVER and get £10 off your first session!