Saving isn’t the easiest of concepts to understand. Let’s face it. Many adults haven’t done a great job with savings. Perhaps that’s why there are a lack of emergency funds and why Dave Ramsey has so much business today.
Saving is one of those importance principles that must be taught at a young age. The best way to do that for young kids is by using piggy banks. But, it’s not that straight forward. You can’t just buy your child a cute little piggy bank and expect that they will all of the sudden learn the value of saving money and become Wall Street investors later in life. There is much to consider.
Help Your Child Set Goals
Piggy Bank © by alancleaver_2000
For a piggy bank to be effective it must be used as a tool for teaching important concepts such as having a savings goal. Once you purchase your piggy bank sit down with your child and discuss what my be an appropriate savings goal. You could help your child to choose to save for a small toy or something fun. Don’t overwhelm your child with big savings goals you may prefer them to save for such as college. 
Make it Fun
Make having a piggy bank fun. You might consider buying a ceramic piggy that your child can paint or decorate. You should make the piggy bank something that can be personal and enjoyable for them to have. There are also plenty of creative piggy banks online that you can purchase. Involve your child in the process and let them choose what they like best.
Make the Money Accessible
A lot of parents make the mistake of choosing a piggy bank they like and place it up high on a shelf their child can never see or access. It becomes a decoration in the child’s room which is simply useless. The bank should be placed where the child can reach it and play with it. They might enjoy taking the change out and redepositing it from time to time. Encourage your child to do this and they will appreciate it as their savings grows larger.
Consider Multiple Savings Banks
Finally, you might consider purchasing multiple piggy banks. I’m a big advocate of teaching kids money lessons by helping them understand how to manage money across giving, savings and spending piggy banks. These three areas are important and can help a child set priorities for how their money is allocated.
What tips do you have for teaching children how to save with piggy banks?
