It’s never too early to start teaching your kids the importance of saving money. Saving is a skill that lasts a lifetime, and getting them into good habits now, will help set them up for success. Learning to save helps set goals and shows how earning interest helps money grow over time.
If you have kids, it might surprise you to know that children as young as five years old can be ready to learn about saving and spending. Research suggests that children are “developmentally capable” of saving by age five. One of the simplest ways you can teach your kids how to save money at a young age is with a money bank or some other container to collect our coins and money.
Money bank is one of the most effective ways for parents to teach their children the value of saving money rather than spending it. It’s also one of the easiest ways to introduce different coins-10/20/50cents and bills-RM1/5/10/50/100. Besides that, money bank can be used to teach basic math skills like addition and subtraction – addition when they save more and more while subtraction when they take the money out to spend of share.
Some parents like to give their children multiple money banks, each for saving, spending and sharing. This is a great real-life example where an adult with an ideal financial management should have savings that they can spend and share in a short term and savings that we can only take out in a long term.
The money bank can be used to teach the very important skill of delayed gratification. While it’s easy to slide those coins into the coin slot, it’s not so easy to get them out! Kids have to learn to wait. Not having immediate access to their money is a good way to learn patience and prepare them for a more grown-up savings account later.
A popular way to reward your kids for completing chores is by giving them allowance. Now, we know what you’re thinking. What do you do once the money bank is full? Parents could help them count the money and show them how much they need to spend to buy something they want.
There are only three things we can do with our money and maybe your kids will figure it out soon. Save, spend or share. The more they save, the more they have to spend and share. Money bank will help them to develop the strong habit of saving their money, to learn the value of their well-earned money as well as the concept of generating an income and make expenses.
Money is interesting, and powerful, and having some opens up a whole new world! The earlier kids learn how to save money, the more it will become a part of their value system and a habit. Most importantly, saving gets them to keep an eye on their dreams. Set goals. Look ahead. With saving, they can make things happen!
p/s: The order for Sylvia Money Bank is closed now. Stay tuned for batch 2 open order announcement.