A great place to start teaching kids about money is by introducing the concept of saving. Children’s first experiences with saving can be as simple as putting coins in a piggy bank or glass jar. This tangible method of saving can be quite powerful because it makes the concept of money more real and helps children understand the basic idea of accumulation over time.
When kids see their money grow, it motivates them to save more. As they grow older, parents can transition them from a piggy bank to a more formalized savings system, such as a Kids Savings Account. Not only does this step make their savings feel more official, but it also teaches them the value of a trusted financial institution, such as a credit union or bank. The idea of watching their balance increase due to deposits and even interest can provide a sense of financial accomplishment that reinforces their commitment to saving.
