It’s good to start teaching kids about money management earlier. Teaching them at a young age is the best way to help them become financially literate adults. One way to do this is by using money banks for kids. Money banks are a great way to teach kids about saving money. They can see their money grow as they watch it accumulate in their bank. And when they’re ready, they can use their money to buy something they want.

Benefits of Having Money Banks for Kids

Not only will your child learn about counting money and the different denominations, but they’ll also learn about budgeting, investing, and saving. By playing with a money bank, your child is learning valuable financial skills that will serve them well in the future.

Money banks for kids also teach responsibility. Once your child has saved enough money, they’ll need to figure out what to do. Will they spend it on something they want, or will they keep it for a more significant purchase later on? There are many options to consider, each with pros and cons.

Types of Money Banks

There are a few different types of money banks that you can use to teach your kids.

The piggy bank is the classic option and probably the one that most people think of when they hear the phrase “money bank.” It’s a small ceramic container in the shape of a pig, and kids can put their spare change into the slot on the top.

Another popular choice is the Mason jar money bank. This is just a regular Mason jar with a lid with a slot cut out of it, and it’s perfect for storing dollar bills, coins, or even jewelry.

Tips for Setting Up a Money Bank

Once you have your money bank, it’s time to consider how to use it. Before you start, sit down with your kid and explain the concept of earning, saving, and spending money. Ask them about their priorities when it comes to spending money and develop some goals together. Maybe they want to save for a new toy or have enough money for a special outing. Whatever the goal is, start setting expectations from the beginning. This is a great way to teach your children the importance of money, budgeting, and responsibility.