Learning about money and financial literacy is more important than before as the words like loan, overdraft and mortgages have become as common as savings, bank balance and assets. And when it comes to savings, it’s never too early to start so why not start when the kids are small.
We as parents don’t need to look out for ways to teach our kids about money and savings, our everyday routine life offers us many such opportunities. Just a little bit of your time and effort is enough.
A piggy bank encourages your kids to save as it’s a physical place for them to store their money. Unlive a bank account, which can be a little complex for small kids, piggy bank is tangible with ready fund for your child and the entire experience of saving and later counting the money can be very exhilarating for your little one.
Adding money into the piggy bank by your kids should be a regular habit specially when your child starts getting an allowance. With this habit, you can teach your kids some important lessons like;
- Teach them to save: When you give pocket money to your child, ask them to save a certain percentage of it for the toy or gadget that they have been bugging you for endlessly. Every coin or a note added into the piggy bank will bring more joy to your child and motivate them to save more.
- Teach them the math skills: If your kids are small, teach them the name of the coins and notes and how to add them up while for the older kids, teach them about percentage and interest rates and how they can get more returns if they save more.
- Set a goal: You can ask your child what he or she wants, in the near future or even when they grow up. Tell them the value of that thing and motivate them to save for it. So if your child wants to buy a car when he/she grows up, make them save from a young age with a goal in their mind.
- Value of Money: Its easy to ask for something but its equally tough to remove that money and pay for it. So next time when your child makes a demand for a toy, ask them to pay with their own money so if they fear that they are losing money from their piggy bank, they will not demand it again.
Piggy bank is the first step towards savings and learning all about money for kids. They need to understand the value of money and its importance as its undeniable that money does play a very important role in ones life.
So now that we all know that piggy bank can play a very important role in your child’s life, do get them one as its the road map to their bright future.
Also do read the blog written by one of my blogger friend Sakshi which talks about financial awareness for children here .