The younger they get trained about money management, the better off they will be in the future once they start handling their own money. Try out these piggy bank tips for kids and teach your little ones to be wise about their pennies.
If you’re a parent who thinks that handling money is something that kids should only learn from their teachers at school, think again. Here are a few quick facts to give you an idea about how important it is to teach kids about the value of saving, even at an early age:
- According to Bankrate.com, an alarming 36% of Americans do not have any money at all on their retirement savings accounts.
- From a recent survey done by T. Rowe Price, it showed that 63% of kids with families who freely talk about their financial goals claim that they feel smart about money. This can be compared to the mere 35% who feel confident about having good money management skills, despite having a family who does not freely talk about their financial goals.
- According to a T. Rowe Price’s survey, here’s how children regard their saving and spending habits for 2014:
– 36% are more of a saver than a spender.
– 34% are more of a spender than a saver.
– 16% are definitely a spender.
– 13% are definitely a saver.
Only a small percentage consider themselves to be a definite saver, so it will greatly help if parents will proactively teach their kids the importance of saving and instil in them the skills for good money management. We know all the piggy bank tips for kids, so keep reading.
What are the Best Piggy Bank Tips for Kids?
Now, what are the ways for you as a parent to get your little one to save money? Should you use the piggy bank approach, or do the traditional opening of an account at the local bank with them? It’s entirely up to you, but to give you an idea about which approach might work, check out our top piggy bank tips for kids:
It pays to start early.
While the kids are still young, aren’t you already instilling in them certain habits like brushing their teeth before going to bed; saying please and thank you; respecting elders; putting away their toys; etc.? Why not include saving money in this list? As young as three-year-old kids are, getting them started with the habit of saving will let them know how important it is to save instead of spend money. Kids aged three to five can be made aware of the importance of saving money and doing it as a habit, although experts say that on average, kids can grasp basic financial concepts by age six.
Start teaching kids how to save at home using actual piggy banks or savings jars.
Actual piggy bank tips for kids include savings jars that are an excellent training ground for your kids to learn how to save money. If you have a six-year-old son who would like to buy a toy which is beyond your budget as a struggling parent, give him a piggy bank where he can put spare change. Pay him for age-appropriate tasks so that he can pool together resources to buy what he wants. Not only will this teach him the value of saving money, but he will also be aware of the importance of hard work.
If there are many kids around the house, you can pool together all your resources and teach them the value of saving money. Have money jars ready which you can label with different savings goals. For Jar 1, you can put “To Donate” on the label. For Jar 2, you can put “Disneyland Trip Funds”. For Jar 3, you can put a “For College” label. Once your kids see you putting away even spare change on these jars, they will realize how important it is to manage one’s finances and work hard to achieve one’s goals.