Piggy bank, bank account or app: where should your child’s money go?
Use a piggy bank or jars for children under about 8, because they can see and touch the money. Add a tracking app around 8 to 12, so they practise choices every week. Move bigger sums to a junior bank account, which pays up to about 7% a year at some banks. For teens saving larger amounts, a money market fund like Ziidi has paid roughly 8 to 12% a year. Most families end up using two of these.
- Piggy bank: best for under-8s; earns nothing.
- App: best for weekly practice; myKesho holds no money.
- Junior bank account: safe home for bigger sums; up to about 7% at some banks.
- Money market fund: higher return for teens; withdrawals can take a day.
- Inflation was 6.8% in September 2026, so money sitting still loses value.
The four options at a glance
| Option | Best age | Earns | Teaches |
|---|---|---|---|
| Piggy bank or jars | 5 to 8 | Nothing | Seeing money, saving, counting |
| Kids’ money app | 7 to 15 | Nothing by itself | Weekly choices, budgeting, asking |
| Junior bank account | Any | Up to about 7% a year at some banks | Banks, keeping money safe |
| Money market fund | 13 to 17 | Roughly 8 to 12% a year in 2026 | Interest, investing |
Piggy bank or jars
Young children understand what they can see. Coins dropping into a jar, the jar getting heavier: that’s the lesson. Three jars (Spend, Save, Share) are even better.
Downside: it earns nothing, it’s easy to raid, and with inflation at 6.8% in September 2026, money that sits still loses value each year.
A kids’ money app
An app is where children practise choices: what to spend, what to save, what to share, whether to ask for something. myKesho, for example, gives children their own wallet and jars, while parents keep the cash and approve every spend. It holds no money and needs no M-PESA or bank details.
Downside: it doesn’t earn anything on its own. Some families add a small weekly Save bonus to act like interest.
A junior bank account
A safe place for bigger sums: birthday money, gifts from relatives, savings that would be tempting at home. Several Kenyan banks offer them; some need no minimum balance, and some pay up to about 7% a year. Withdrawals are usually through the parent and sometimes limited. Our junior accounts comparison has the details.
Downside: it’s invisible to a child week to week. Money goes in and disappears.
A money market fund
For teens with larger savings, a money market fund usually pays more than a savings account. Kenyan funds paid roughly 8 to 12% a year through 2026, before 15% withholding tax on interest. Teens on M-PESA GO can save in Ziidi from KES 100; see our M-PESA GO and Ziidi guide.
Downside: returns aren’t guaranteed, withdrawals can take a day, and it’s a concept that needs explaining.
What KES 100 a week becomes
Saving KES 100 a week for 5 years puts in KES 26,000. Roughly, that grows to:
- Piggy bank: KES 26,000, worth less in real terms because of inflation.
- Account paying 3%: about KES 28,000.
- Fund paying 9%: about KES 33,000, before tax.
These are illustrations, not promises. Rates change.
A combination that works
- Ages 5 to 8: jars at home.
- Ages 8 to 12: an app for weekly practice, plus a junior account for gift money.
- Ages 13 to 17: an app or M-PESA GO for spending, and a fund or junior account for real saving.
How myKesho helps
myKesho’s Grow lab lets children aged 8 and up compare a piggy bank, a bank account and a money market fund over 1 to 10 years, with a chart. It’s pretend numbers for learning; no money moves. The Big money ideas level covers banks, funds and compound growth for teens.
Questions parents ask
Is a piggy bank or a bank account better for a child?
A piggy bank is better for children under about 8, who need to see their money. A bank account is better for bigger sums and earns interest. Many families use both.
Can a child have a money market fund in Kenya?
Teens on M-PESA GO can save in Safaricom’s Ziidi money market fund from KES 100. Other funds usually need a parent to invest on the child’s behalf.
Does myKesho hold my child’s money?
No. myKesho is a record and a learning tool. Families keep their own cash, and no M-PESA, card or bank details are needed.
Lessons for your child
- How savings grow: Interest, SACCOs and money that earns money
- The magic of compound growth: Why starting early beats starting big
- How banks really work: Banks keep your money and lend it out
- Why prices go up: Inflation: why the same money buys less over time
More guides
- Junior bank accounts in Kenya compared
- M-PESA GO and Ziidi for teens: what parents should know
- Saving for a goal: a step-by-step plan for kids
Sources
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