Savings Plans & Kids (When To Start)

To a child there is no better sound than a coin dropping in the slot of their piggy bank and hitting the coins below.  As you watch your child drop the coins in their favorite piggy bank just look into their eyes and you can’t help but see joy within them.  As children get older they tend to enjoy the look and feel of dollar bills over change.

No matter what age your child is, no matter if they receive bills or coins; they learn early that money brings a certain joy to them, even for a short time.  As your kids take money and drop it in their bank they are learning the basis of money and how to save it.  This is the start of their savings plan.  This is an important step in getting your children on the right track financially.

So when is a good time to get children started on a savings plan?  There is no perfect answer but for the average child the age of 3 is a great age.  Some will pick it up a little sooner and for some it will take a little longer, don’t rush it, and allow it to happen naturally.

There are many ways to start kids out on a savings plan here are a few ideas to get your creative financial juices flowing:

*Take your child to the store and allow them to pick out the piggy bank they like.  If they like the bank they will be more interested to put money in it.

*Teach your children the amount of each coin (1 cent, 5 cents, 10 cents, 25 cents).  Use real money not plastic or fake coins.  They will be using real money so teach them with real money.

*Try to use newer / shiny coins; children are more attracted to them over older more dull coins

*Make a game out of it.  Kids love games and playing so make it fun and exciting.  Have them count the number of coins they drop in their savings bank.

*As they are getting ready to drop a coin in the bank ask them how much money is that coin worth.

*Buy a few items from the store that cost 1, 5, 10 and 25 cents (I know there really are not a lot of them).  What they are is less important than the size of them.  Show your child how much each one costs.

As I said earlier there are many things you can do to teach your child about money and savings.  No matter what method or game you play with them take your time and make it fun for them.  Remember you are starting them off on a journey that will never end.  Make it fun, make it memorable and most important enjoy the time with your children.

Strategy Based Profits TIP: – When teaching your children about money keep it fun for the both of you!

Robert J. Roy
Money Man

  • Good share, great article, very usefull for us…thanks.