Teaching Kids to Save Money with A Piggy Bank Twist!

Manic:  All of the accounts we recently opened up at our bank to enroll our kids into a teen savings/checking account club that teaches them about saving and spending.  To participate, we had to open up both a savings and a checking account, so now my kids (and I, of course) have 4 more accounts to keep track of!

Managed:  Getting some advice from educational/parenting expert and managedmoms.com writer, Lisa Walton on teaching kids how to save money.  And she tells us about an awesome website for families that is filled with articles and tips on how to teach our kids, of all ages, about the value of a dollar, saving, budgeting and more!  Check out her awesome advice…

Lisa says:

Teaching Kids to Save Money:  A Twist on the Traditional Piggy Bank

As a parent, it’s our job to teach our kids about money and saving.  But that’s not always an easy thing to do or follow-through on.  Here’s an easy way for kids and tweens to learn to save money.

 Teaching young children about money should be as hands-on and tangible as possible.  Start with a piggy bank. Banks come in all forms, from traditional pigs to talking ATMs and cash registers.  They are great as both teaching tools and toys.

Set simple goals. Keep them short-term and easy to achieve. For example, kids could save money for a trip to the dollar store, or tape a picture of a toy they want to their piggy bank to give them a visual of their goal.

More Ideas:  Check out www.prosperity4kids.com for books, banks, tools, and more great suggestions!

Tweens are ideal candidates for getting an allowance that’s tied to specific responsibilities.   This is the age where we really need to delve deeper into saving for specific purposes.

In our house we have a bank that is sectioned for spending, saving, and giving.

Any monetary gifts that my son receives or allowance is divided up by three.  The one we use is called a 3 in 1 bank.  Our bank is labeled “bank” for long term savings; “store” for short term saving; and “church” for giving (we give to our church as well as choose charities to donate to).  We purchased it years ago from Amazon for under 20 dollars.

• If you don’t want to take the trouble to parcel out your kids’ allowance, a simple alternative is to require them to save a flat rate, like 10 percent.
• Open a bank account. Carefully explain how the system works. Banks can be very mysterious to children, who sometimes are shocked to see their money disappear.
• Match what your children manage to save.  Reward them for their efforts.
• Once they have achieved their goal, let them spend the money and enjoy the fruits of their labor!

About our writer, Lisa Walton:

Lisa Walton–Parenting tips, Valley Teacher and Mother

Lisa Walton has been a teacher in the Valley for over 18 years. She holds a Bachelor’s Degree in Deaf Education from Illinois State University; and Master’s Degree in Special Education from Arizona State University.  She currently works as an itinerant teacher, collaborating with regular education teachers in the public schools.