Learning about money doesn’t have to be boring! And it doesn’t have to be so abstract either. When you have to learn something new, you often want to see the progress, it becomes easier to remember what you learned. When you use a piggy bank, you learn about money and have time to do a little bit of reflection at the same time!
What is a piggy bank?
Many parents teach their children how to set up a budget with “give, save, spend jars”. When the child earns money, they divide it into the jars.
Find three jars, preferably the same size but it is not a must. Take out labels or a waterproof marker pen, the jars should each have a name! One jar should be called “SAVE”, one should be called “SPEND” and the last one should be called “GIVE”. Set them up in a row in a place where you can easily take them out, preferably a place that you see every day!
In the “save” jar you set aside money for a long-term goal, the money in the “spend” jar can be used at any time, and the money in the “donate” jar is donated to a charity of the child’s own choosing.
Why should you use saving jars?
When we let children connect a concrete action with an abstract behaviour or concept such as “long-term saving”, “short-term saving” and gifts, we encourage their ability to understand and think about what the concepts actually mean and how they work. Piggy banks demonstrate a smaller budget, the children put money in different jars, hear the coins jingle and see how much money is put in each jar.
When it is time for the children to use their money, it is easy to take money from the spending jar and not touch the money that the child has already decided to save. It also gives the child the opportunity to reevaluate their decision about how much money to put in each jar and rebalance their budget.
Different ways to handle money
Gimi
We recommend using Gimi instead of putting all your money in a physical piggy bank. When you use Gimi, you can keep track of and manage your weekly or monthly allowance, and with gamified content you become money smart while saving money!
With Gimi, you can both keep track of your weekly allowance and the reward you get for chores you do at home. Look around and try to find problems that you can solve. Is the dishwasher full? Empty it! Are the beds unmade? Make the bed!
One thing that makes it a little easier to save is if you have a clear goal, or a dream. Find out what your dream costs and find a picture of it. Maybe it’s a new bike, a pair of headphones or maybe a trip? Upload it to Gimi and enter the amount, now you can easily keep track of how much you have left to reach your goal! Then it immediately becomes a little more fun to hold on to the money instead of spending it immediately.
Note that Gimi does not offer savings products such as savings accounts, but is a way to keep track of how much money you have put aside.
Piggy banks
Piggy bank is the most common name for a jar or box that children use to save their money. Piggy banks are most often used to store money in a pretty or cute container, traditionally in the shape of a pig. Modern piggy banks have more shapes than the pig, they come in many different shapes, sizes and colours.
Savings account for children
Savings accounts for children, also called children’s savings accounts, are accounts that parents, family members and children use to save money for the child’s future. It is a great way for children to learn how to manage money and the importance of saving money.
