Quick answer: To teach kids about giving during the holidays, let them choose a cause, set aside money or time to contribute, involve them in the donation or volunteer activity, and talk afterward about who their gift helped. Keep it age-appropriate and focus on participation rather than amounts given to build generosity habits that stick well past December.
Remember making a wish list as a kid? The crossed-out toys, the dog-eared catalog pages, the countdown to opening gifts? That excitement is still very much alive in kids today. But even with all that excitement, holidays can also be a natural opening to teach something just as valuable as receiving: Giving.
Teaching kids about giving doesn’t have to cost a lot or feel like a formal lesson. Kids learn generosity the same way they learn almost everything else: By watching you do it, then doing it themselves. A few intentional moments this holiday season can plant a habit that outlasts the wrapping paper.
Here are practical ways to make giving feel real without adding pressure to an already busy season.
Generosity is a skill, not just a personality trait. Kids who practice giving early can grow into adults who budget for it, plan for it, and feel good about it instead of resentful of it. Think of it like teaching a kid to save: The earlier the habit forms, the less it feels like a sacrifice later on.
There's also a practical money lesson hiding inside this values lesson. When children see giving as a planned part of spending (alongside saving and spending on themselves), they start to understand budgeting basics without ever sitting through a lecture on it.
Kids, especially younger ones, understand concrete actions far better than big ideas. "Being generous" is abstract. Picking out a toy to donate is not.
A few ways to make it tangible:
One approach that works well for kids of almost any age is splitting money into three jars or envelopes: Give, save, spend. When your child receives holiday cash from a grandparent or earns allowance, they divide it across all three.
This isn't about forcing a strict percentage. Even a token amount in the "give" envelope reinforces the idea that giving is a normal, expected part of handling money, not an afterthought. Over time, kids who practice this tend to carry the habit into their teenage and adult years, often continuing to set aside money for causes they care about.
If your child is older, this is also a good moment to introduce the idea of a budget. You can save the spreadsheet talk for later. For now, three envelopes will do.
Kids are digitally savvy—and often receive holiday cash gifts or their allowance digitally—so you can leverage online savings accounts as your give, save, spend “jars” or “envelopes.” Through many financial institutions, creating multiple online savings accounts is free.
With an Alliant Kids Savings Account you can easily create up to 19 additional supplemental savings accounts that can be given custom names like “Give,” “Save,” and “Spend” within digital banking. Together, you can determine how much should go into each category, easily track progress on savings goals on a smartphone or laptop, while removing the temptation to dip into the Give or Save categories when they want to Spend.
Giving looks different depending on how old your child is, and that's a good thing. Below are some rough guidelines.
For younger kids (ages 4–7):
For elementary-aged kids (ages 8–11):
For tweens and teens (ages 12+):
Matching the activity to your child's age keeps giving from feeling like busy work. A four-year-old may not understand the details of a nonprofit’s mission, but they will like knowing their drawing made someone smile.
Giving can be easier for kids to understand when they’re directly part of it. Giving them a chance to participate can help them understand generosity in a way that talking about it may not.
It also helps to talk openly about your own giving. If you donate to a cause or volunteer somewhere, tell your kids why, in plain language. Sharing what’s important to you will help them start to think about causes they can care about too.
Giving doesn't need to be a holiday-only tradition, though the season is a natural place to start. Once the habit takes hold— adding money to a jar on the counter, a yearly trip to donate outgrown toys, a few dollars set aside from birthday money in a supplemental savings account—it tends to stick around on its own.
If you're looking for more ways to build smart money habits as a family, Alliant Credit Union offers tools and resources to help you teach kids about saving, budgeting, and yes, giving, all year long.
How do you explain charitable giving to child?
Describe it as sharing money, belongings or time to help someone or a cause that the child cares about.
What age should kids start learning about giving?
Most children can start grasping basic giving concepts around age 4 or 5, especially through hands-on activities like donating a toy or helping wrap a gift for someone else. The activity should match their level of understanding and involvement.
What if my child doesn't want to give away their toys or money?
That's normal, especially with younger kids. Start small and let them choose what to give.
Are there alternatives to donating money for kids who want to give?
Yes. Kids can volunteer time, donate gently used toys or clothes, make cards and gifts, collect supplies, or help a neighbor. How can giving lessons connect to broader financial education? Giving fits naturally into a simple "give, save, spend" money-management approach. Introducing this early helps kids understand budgeting basics.
Teach kids about money with an Alliant Kids Savings Account
Get even more personal finance info, tips and tricks delivered right to your inbox each month.
Thanks for subscribing to Alliant's Money Mentor newsletter! You will now receive personal finance tips in your email inbox each month.
You are leaving Alliant’s website to enter a website hosted by an organization separate from Alliant Credit Union. The products and services on this website are being offered through LPL Financial or its affiliates, which are separate entities from, and not affiliates of, Alliant Credit Union.The privacy and security policies of the site may differ from those of Alliant Credit Union.
You are leaving an Alliant Credit Union website and are about to enter a website operated by a third-party, independent from Alliant Credit Union. Alliant Credit Union does not manage the operation or content of the website you are about to enter. Alliant Credit Union is not responsible for the content and does not provide any products or services at this third-party website. The privacy and security policies of the site may differ from those of Alliant Credit Union.
