Learning about money doesn’t have to be boring! And it doesn’t have to be so abstract either. When you learn something new you want to see what happens, and that also makes it easier to remember. When you use savings jars you get to learn about money and get to make some crafts as well!
What is a savings jar?
One great way that a lot of parents teach kids how to budget is with "give, save, spend jars.” Whenever the child earns money they divide it between the jars.
Find three jars, preferably in the same size but it’s not a must. Get some labels or a waterproof marker, the jars need names! Name one jar “SAVE”, name another jar “SPEND” and name the last one “SPEND”. Put the up in a row in a place that you can easily access, preferably somewhere that you see every day!
The “save” jar is money that's intended for a longer-term goal; money in the “spend” jar can be used any time for smaller purchases; the “give” jar is money that will go to a charity of their choosing.
Why are savings jars a good idea?
Giving children concrete actions to connect to more abstract behaviours and concepts like “long term saving”, “short term saving” and donations promotes their ability to understand and think about what these concepts mean and how they work. In the instance of savings jars, these concrete actions translate to small scale budgeting as they put their coins into the different jars, hear the jingle as the coin falls down and then see how much money goes where.
When the time comes for the child to use their money for the snack at the local convenience store, the jars make it easy for the child to only take money from the spending jar, thus not using more than what s/he had decided to use while dividing their allowance in the first place. Furthermore, it allows the child to reevaluate its decision to put this or that much money in the different jars if it feels unsatisfied with the amount of spending, saving or donating and as such rebalance the jars to what the child thinks is better.
Other ways to save money as a kid:
Rather than putting all your money in a piggy bank, we recommend using Gimi. When you use Gimi you can track and manage your weekly or monthly allowance as well as increase your financial literacy by putting money aside and learning through gamified content.
Gimi lets you keep track of your pocket money and rewards that you get from chores. Take a look around the house and try to find problems that you can solve. Is the dishwasher full? Empty it! Are the beds unmade? Make them!
One thing that makes it a little easier to save is having a clear goal, or dream. Find out what your dream costs and find a picture of it. Maybe it’s a new bicycle, a pair of headphones or a trip? Upload it to Gimi and add the amount, now you can easily keep track of how much you have left! This makes it more fun to save instead of spending.
It is important to note that Gimi does not provide a savings account, but is only a means of keeping track of how much money you have put aside.
Piggy bank (sometimes penny bank or money box) is the traditional name of a coin container normally used by children. 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 colours.
As locked money boxes with a narrow opening to drop cash or coins, they are most commonly used by temples and churches. The box is opened via a plug underneath it at regular intervals when the collected money is counted and recorded.
Get started with a piggy bank
Children’s savings account
Children’s saving accounts, also known as a junior savings account, are bank accounts where parents, family members and children can save money for the child's future. It is a great way for children to learn how to manage money, and of the importance of saving for the future.