1–Teach ’em to save
It’s never too early to teach a child to save money. Teach them that it’s often best to save for a really nice huge toy rather than a few cheap toys. With every dollar or coin added to the piggy bank, it’ll give them motivation to earn more. Besides, who doesn’t love to hear the “clink” of the sound of change as it hits the bottom of the piggy bank?
2–Teach ’em to invest
It’s not enough to just save money. Sure, it helps to put that money into a high-yield savings account and at 2% compound interest they’ll earn a handful of cash. But also show them how to grow their money by investing. Invest some of it in mutual funds or ETFs, let it sit for a few years or a decade, and watch it grow. Imagine what a learning experience it would be for the child as they watch their money work for them.
3–Teach ’em math skills
Use their money to teach them about percentages. Teach them about interest and compound interest. For the younger kids and toddlers, teach them the names of the coins and amounts. Teach them to add or subtract using money.
4–Teach ’em to set goals
Ask your kid what they want to buy now. And then, turn around, and ask them what they would like five, ten, or even twenty years from now. Show them how much these things cost. Make a plan and show them how they can achieve these financial goals.
5–Teach ’em to budget
Show your kids how much you have to spend on food and then take them to the grocery store. Have them look at different brands and products. Encourage them to help you find ways to get the most for the budget. Encourage them to figure out how to stretch the budget.
So, go get a piggy bank. Here are some of the BEST piggy banks that I’ve seen on the market:
Do you have a piggy bank? Do you find that it helps you to save money?