kids savings accounts

How Piggy Banks Help Kids Save Money

Posted on 15. Apr, 2010 by admin in Teaching Kids About Money

Every parent knows that trying to teach kids to save money can be nightmare. If you begin to teach them from an early age the value of saving money, hopefully they will continue to save in the future. The best way to encourage young child to save their money, is by giving them a piggy bank. It has been proved to be an effective but fun way to teach them to save.

They will enjoy putting their money in the piggy bank, and will love to see it growing as they add to it. Setting your child a goal will encourage them to save, and if they see a toy or game they really want, then tell them once they have saved enough money they can buy it. At a certain age many children are old enough to starting earning their own money with simple tasks or jobs around the neighborhood. Parents and guardians can encourage ways kids can make money to save for items they really want. Children who are taught the value of money from a very early age will grow up to be more responsible adults. You will need to be level headed about money too as your children will learn from you.

The design of the piggy bank is important because some piggy banks have to be smashed to get the money out and others you can open. The piggy banks that you can smash are great if you don’t want your children to have the rewards until it is totally full. Many children won’t want to smash it just to count their money. They will learn patience as it fills up, but they could get bored waiting. Other children like to count their money on a weekly basis and to see how much they have saved. This style of piggy bank is good, and if you have set your child a goal they can see how they are progressing with it.

Also by counting the money out, you are helping your child recognize the different types of coins and notes, and their arithmetic will also improve. Some parents like to ask their child at the end of every counting session what they could afford with their savings. If it is a small item, then encouraging them to save for the all important big item is the next step. You are trying to nurture your child into setting bigger goals, and achieving them. You can always place a picture of the selected toy that they chose, near the piggy bank. So every time they put money in it they can see what they are saving for.

Once your child has begun to realize that saving their money is not only fun but they also receive rewards through their patience, they are more likely to want to invest all their spare pennies into their piggy bank. They will often want to earn more money to achieve their goals, and giving them small chores to do around the house is the next step. They will soon learn that to earn more money they will need to work for it. Working in their lives will give them the money they need to buy the things they want. All of these small things in the early years of your children’s lives will make them better, hard working adults.

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Tags: Kids and Money, Kids Make Money, Kids Savings Accounts, piggy bank, piggy banks, Teaching Kids About Money