How to Teach Kids to Save With Piggy Banks

Use a piggy bank to help teach your child to save money.

Teaching kids to save money using a piggy bank gives them the opportunity to physically see their savings. By interacting with your children and doing something as simple as counting the money in the piggy bank together, they will learn to manage money. Children think about money as an item, so making the saving process as hands-on as you can will produce the best results.

Instructions

1. Introduce the concept of choosing to save your money vs. spending it right away. Show the child the difference in prices among the toys he wants to encourage his drive to save. Tape a picture of the item your child is saving up for on the piggy bank to help remind him why he is dropping money inside instead of giving in to the temptation to spend it.

2. Communicate with your child that the picture taped to the piggy bank represents her personal goal. Tell her that no one is making her save the money in the piggy bank and that it is entirely up to her whenever she chooses to add more. Explain how even the smallest "donation" to the piggy makes a difference in the end.

3. Comment on the piggy bank every so often to remind your child it is there. Children do not have a solid sense of long time frames and could be easily distracted from remembering their savings. Use subtle comments rather than ones that are directly related to the child saving money to keep the child from feeling as if he or she is complying with some sort of pressure to save.

References

• Family Education: 15 Ways to Teach Kids About Money
• Kiplinger: How to Teach Young Kids to Save