The Save Bank: Money Grows
Watch it grow together
When you save money, it grows. That’s the first message you can help your child understand. You can easily drop coins into the bank, illustrating how at the end of 4 weeks and 4 “deposits,” the amount within the bank grows. (This is the value of a bank with transparent walls. Children can watch their money accumulate.)
Coins grow into dollars
When you save, coins turn into dollars. Now empty the bank and cash-in 4 weeks of coins for paper money. Put the paper dollars back in the bank, along with the extra change.
Keep saving – money grows
When you save over time, money really grows. Now show how the amount of money builds over several months. Drop in the coins. Count them weekly and trade them for bills.
Savings plus interest equals even more money. Talk to your child about interest — begin by explaining that interest is the money a bank pays savers for holding their money in the bank. You can illustrate the idea by adding a nickel to each dollar your child saves. Count out $10 singles, and then place 10 nickels on the table. Help your child count the interest. Your child will discover that he or she made 50¢ just for keeping money in “savings.”
Matching money saved
Begin a matching program. Create a further incentive. A parent, or maybe the child’s grandparents, can pledge to “match” any money the child saves. Every two weeks, the “matchers” and the child can sit down and count the total so your child can see matching in action.
Help your child plan
Work together. You and your child should decide what portion of savings should go to short-term and long-term savings goals. Have your child draw or find a picture that illustrates a short-term goal, like a book or a toy. Another picture could show goals that are very far away, like a video game system or computer.
To get more info about saving, go to Saving under the Fun for Kids tab.