Piggy Banks for Children: A Way to Teach About Saving, Giving, and Investing
In the present economic times, it’s difficult to think about saving as so many people are just maintaining their present levels of living. However, this is a good time to begin teaching our children and grandchildren how to save, invest, give, and spend.
I believe it’s vitally important to teach our children the value of donating through our home church, local missions, or worldwide missions.
Teaching our children (and grandchildren) the proper way to handle their money could help keep them from being buried under a mountain of debt from which it’s nearly impossible to escape.
This article deals with several different banks that help teach children proper management techniques. But you, the parent, must be prepared to follow through, offer sound suggestions, and be able to guide the child.
First, each parent much decide how much allowance to give their children. Many factors come into play, such as the child’s age, level of understanding, abilities, and how much discretionary spending the parents have. This is a very personal matter. Allowance can range anywhere from $1.00 a week to $20.00 or more, depending on the parents financial standing.
Second, remember that your children’s money habits will reflect your own. Do you spend frivolously or do spend carefully? Do you give to your local church or favorite charities, or are those unheard in your home? Do you have a savings account or other investing activities? All of these factors will shape how your child will respond to this program.
Third, you’ve determined you would like to help your children learn knowledgeable ways to handle their money and finances later in life.
Fourth, consider their age. For younger children, let’s say pre-teenagers, there are several nifty ways to help learn effective money-management strategies.
My favorite way to help children understand money is a compartmentalized or divided bank. There are several on the market that work well.
One of these is called “My Giving Bank” and was created by Crown Financial’s Larry Burkett. It has three compartments; one each for bank, spending, and church. Although there isn’t a separate section for investing, the parent can help the child understand that bank is a way to save money. At many banks, a child can open a savings account with as little as $25.00, with no monthly fee. (When the child reaches 16, usually a $250 or higher minimum must be maintained.) Along with this bank comes a brochure that helps teach the child how to handle money in a Biblical, God-planned way.
Another bank is called the Moonjar bank. This bank consists of three cardboard pieces labeled for spending, saving, and sharing. The parent assembles the bank. Upon assembly, the three pieces are held together by an elastic band. This product won several awards, including the National Parenting Center Seal of Approval.
The Money Savvy Pig Bank is a translucent plastic pig with four compartments, one each for spending, saving, donating, and investing. This bank comes in pink, green, purple, blue, red, and platinum. This is a cute bank because it looks like a traditional piggy bank and could last for several yeas. Each of the categories has an exit hole through the bottom of the four pig’s feet, so the contents can be emptied individually.
One more type is called the “Money Mama the Smarter Piggy Bank.” This one contains a large mother pig with a slot for money, plus three baby pigs, each with a slot for saving money. Also included is a book to help the parent learn to interact with the child to teach about finances and money.
For older children (the web site states 8-12 years old), there is a cash ledger set that can be purchased. Published by the Cash Management Connection, this is a set of ledgers and not a bank. This could be a good tool for children who have learned some basic money techniques using divided banks. The company also sells a ledger set for adults.
For further information and products, go to a search page and type in such phrases as “compartmentalized piggy banks” or “divided piggy banks.”
Remember, we must begin teaching our children now about the value of money and how to invest wisely for the future. A child’s birthday is a good reason to buy such a bank. But, why wait until a birthday? For an investment of under $20 in most cases, you can purchase a bank and help the child begin to understand money in a practical way.