All adults know that money doesn’t grow on trees, but that’s not necessarily true for kids. Help your kids, grandkids, or other children in your life tuck away their extra nickels and dimes for a rainy day.
1. Bank it. Encourage kids to decorate four separate piggy banks – one each for Saving, Spending, Investing, and Giving – to help teach about setting money-related goals. Investing money will be used for future investments and Giving money can be donated to a charity of the kids’ choice.
2. Offer an allowance. Assuming you are helping your own children save money, provide a small allowance so there is something to put into the piggy banks. Give the allowance in small bills or coins so kids can physically hold and drop equal amounts of cash into each piggy bank.
3. Make goals. If there are certain things kids want to buy, or if they are expected to save a certain amount of money toward larger items such as bikes, explain that they’ll need to use the Savings piggy bank to collect the needed money. And, if they choose not to spend money out of the Spending piggy bank right away, they’ll be able to buy the items they’re saving for faster.
4. Go shopping. When you go to the store, let the kids take their Spending money with them. If they want to buy something, count out change in the store. Feel free to remind them that, if there is something more expensive they’d like to buy, they’ll have to continue to save for it – and they’ll reach their goals faster by moving Spending money into the Savings piggy bank. However, if they want to buy something, that is their choice as this is their money.