Teach Kids How to Budget Their Money With the 3 Piggy Bank Method (2024)

FAQs

Teach Kids How to Budget Their Money With the 3 Piggy Bank Method? ›

Give your child three banks

The “3- piggy system” is basically cute kid-speak for: “Save, Spend, Charity”. Basically, instead of their allowance and all other income they may receive going into a piggy bank, it gets split between three: one for saving, one for spending, and one for charity.

The 3-jar system is a popular way to begin teaching children how to budget. With this system, you give your child three clear jars, each representing a different fund: spending, saving, and giving. The child will then divide their money into the jars with your guidance.

One way to simplify all this and to get control of our budget is to break down all our spending into three categories. Put simply, everything that we spend money on can be sorted into one of three 'pots', or piggy banks - either Bills & Regular Payments, Day-to-Day Spending, and Savings & Big Purchases.

Teach the “Earn, Save, Spend, Give” Model:

Encourage them to save a portion for future goals, spend some on things they need or want and set aside a little to give to charity or others in need. This model helps kids understand the different purposes of money and encourages them to think beyond just spending.

One popular (but unproven) theory about how piggy banks came to be relies on stories about the old English word “pygg.” According to some, pygg was a type of earthenware clay used to make everything from plates to water vessels.

The PiggyBank online banking system is created for the PiggyBank, which is a small bank for personal and small-business banking. The banking system enables PiggyBank customers to access their bank accounts and perform everyday banking transactions over the Internet.

The 50-30-20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should dedicate 20% to savings, leaving 30% to be spent on things you want but don't necessarily need.

Myers models her list after the Wise Men and gives her children a “gold” present, or something a child would want and treasure, like a favorite toy; a “frankincense” present, or a gift that will be used in worship or spiritual life, like a Bible; and a “myrrh” present, which is something for the body, like clothing or ...

How to Set an Allowance for Kids. A commonly used rule of thumb for paying an allowance is to pay children $1 to $2 per week for each year of their age. Following this rule, a 10-year-old would receive $10 to $20 per week, while a 16-year-old would get $16 to $32 per week.

What is the piggy technique? ›

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.

The general use of piggy banks is to store loose change in a quaint, decorative manner. Modern piggy banks are not limited to the likeness of pigs and may come in a range of shapes, sizes, and colors.

1. The zero-based budget. The concept of a zero-based budgeting method is simple: Income minus expenses equals zero. This budgeting method is best for people who have a set income each month or can reasonably estimate their monthly income.

Here's what it means: Budget 50% of your income for needs. Budget 30% of your income for wants. Budget 20% of your income to savings and unexpected, necessary expenses.

Piggy bank superstitions

In some European countries, such as Germany and the Netherlands, the pig represents good fortune, so it's customary to gift people with a piggy bank as a symbol of prosperity. During New Year, it's also a tradition to exchange 'Lucky Pigs' made of marzipan, chocolate, wood or porcelain.

It's actually quite easy ...

You just need to get a stiff piece of card about the width of the slot and about 6 inches long, put it into the slot, turn the money box upside down, preferably over a bed or sofa, then gently waggle it with the card in place.

Piggy Bank is a money management tool that makes it easy to set aside funds for the things you really want or need. Whether it's for a rainy day or a special occasion, you can set up Piggy Banks right on your phone.