Piggy Banks: The First Step Towards Money Management

Piggy Banks: The First Step Towards Money Management

Do you remember how excited you were when your mom bought a piggy bank for you? That was the first financial lesson from your mom-“to save”. Now, it’s time to pass on that lesson to your children! Yes, there is no better way to teach your children to value money than to get them a piggy bank. It helps in inculcating good financial habits at a young age that will last a lifetime.

Here are some of the financial lessons that you can teach your children through piggy banks:

The Value of Money
Encourage your kids to set aside money in the piggy bank so they can buy the things they really need. Letting them shop with their money will help them understand that they need money to buy something.

Difference between Wants and Needs
If your child wants a toy, tell him to wait for a week to see if he can go without it, otherwise he can buy it from his piggy bank’s savings. This will help him understand the difference between a want and a need.

Money Has to Be Earned
Give a small allowance for the chores your kids do for you- like cleaning their room-and ask them to save it in their piggy banks. They will realize that money has to be earned and will also take pride in the fact that they have worked to earn their money.

Small Saving Goals
Help your children set small saving goals. Like, if they will save $20 in their piggy bank, they can buy a toy and if they save $100, they can get an extra $10 from you. This will make them realize how small saving goals can help them achieve bigger saving goals.

Save as well as Spend and Donate Money
Give your kids three separate piggy banks and label them- save, spend and donate. It’s important to explain that they can save some, spend some and even donate some of their money. This will help them learn the concept of budgeting and dividing the money for different purposes.

Feeding the piggy bank can be fun as well as a learning experience for your kids!

Coming up next: “Mom, Why Is it Called a Piggy Bank?”. To be published soon. Stay tuned…

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