Why Generosity is as Important as Saving

Smartmonies
Sep 23
2 min read

When we talk about teaching children good money habits, saving usually comes first. Putting coins into a jar or setting aside some pocket money builds patience, discipline, and security. But there’s another side to financial literacy that’s just as important: generosity.

According to the Charities Aid Foundation (2024), around two-thirds of UK children aged 9–17 have given to charity in the past year, either through donations or fundraising.
Studies also show that children who engage in giving activities are more likely to develop stronger empathy, better social connections, and even improved long-term wellbeing.
At the same time, GoHenry’s 2024 Youth Economy Report found that UK kids saved a record £305 million collectively—proving that today’s young people are capable of both saving and sharing.

Why Generosity Matters for Kids

Empathy in Action: Giving helps children understand and care about others’ needs.
Community Spirit: Supporting a cause shows kids they can make a real difference in their own neighbourhoods.
Balance and Perspective: Saving teaches self-control, while giving teaches compassion. Together, they shape balanced money habits.
Joy of Giving: Research shows that generosity triggers positive emotions—children learn that helping feels good.

How Families Can Teach Generosity

Set a “Giving Jar”: Alongside a savings jar, encourage kids to put aside a small portion for a cause they care about.
Give Time as Well as Money: Volunteering, helping at school fundraisers, or supporting community events can be just as valuable as coins.
Match Donations: Parents can match what children give, doubling the impact and showing that generosity is a family value.
Talk About Impact: Share stories of how donations help—whether it’s planting trees, funding school books, or supporting food banks.

Ideas for Schools and Classrooms

Charity Challenges: Have pupils collect coins for a chosen cause and track the total together.
Giving Week: Each child contributes time, money, or ideas to help the community.
Role Models: Share stories of well-known UK philanthropists (e.g., Marcus Rashford’s work on child food poverty) to inspire children.

The Smartmonies Message

At Smartmonies, we believe financial literacy isn’t just about wealth—it’s about values. Saving builds strength for the future, but generosity builds kindness for the present.

Teaching children to be both smart savers and thoughtful givers prepares them to handle money with confidence and compassion.