It’s never too early to learn good money management skills, which is why it’s important to teach kids about saving as soon as they start earning an allowance. Grasping this value at a young age will give them the tools they need to manage their savings accounts, set long-term goals, and build wealth in the future. If you have young children, the tips below will help you start them started on the path to fiscal responsibility.

4 Ways to Teach Children About Saving Money

1. Get a Piggy Bank

A piggy bank is a great way to teach children goal-oriented savings. Explain the purpose is to fill the bank completely, and try to make it a game. At the end, they’ll see they’ve saved more than they realized.

2. Open a Savings Account

When the piggy bank is full, allow your child to spend a portion on something fun, then open a savings account in their name with the rest. Over time, watching their balance grow will help them understand the concept of interest and see it as an incentive to save their money.

3. Set Goals

While children may beg their parents to buy them the latest toy, they’ll have more fun and a deeper sense of accomplishment if they buy it themselves. One technique is to set up savings jars for each goal and allow kids to decide how to budget their allowance, spare change, or birthday money.

4. Get Kids Involved in the Family Finances

The best way to teach is by example, so set up your own piggy bank or change jar. When you’re out shopping, explain purchasing decisions so they understand why some products might be a better value than others. Getting these lessons when they’re young will help them avoid some common money management mistakes when they grow up and start earning their own money.

The friendly staff at Magnolia Bank has been providing reliable personal banking services to Hodgenville and Elizabethtown, KY for over a century. Whether you’re opening a savings account for your kids or applying for a mortgage, they’ll take the time to give you the personalized service you deserve and the best products for your needs. Visit their website now to find your nearest location, call (270) 765-4072 with any questions, and follow their Facebook for news, tips, and updates today.