Use a piggy bank to teach children how to manage money

Use a piggy bank to teach children how to manage money
What is savings-is to save money. Many parents will buy a piggy bank for their children, teach them to save money, tell them what the money is for and how to spend it. An important step in cultivating children's financial management concepts is to teach children the correct savings.
1. People can't have what they want.
2. People must learn to decide what is the most important thing to buy at present, and what can be waited for.
3. The necessity of planning. Know what you want and what you should do next to get what you want. Make plans with your children and implement them.
4. There is a special joy when you get something you have been waiting for.
Getting started with savings

1. Start with a piggy bank.
When the child has a concept of money and coins at the age of one or two, buy him a piggy bank, demonstrate how he puts the coins in the piggy bank, and teach the child to collect coins at home. Once the child learns to use the piggy bank, he will have a soft spot for coins and even collect his parents' coins "crazy".
Let children understand the concept of "later".
2. Three-pot saving method.
When the child goes to elementary school at the age of six, or after starting to give the child pocket money, three piggy banks can be prepared for the child, marking them: daily entertainment, medium-range goals, and long-range goals.
Discuss with your child his mid-range goal and long-range goal, and encourage your child to allocate his pocket money according to 30%, 30%, and 30%, leaving 10% to do good deeds or put it in the long-range goal.
Encourage children to move money from the short-term target piggy bank to the longer-term target piggy bank. For example, move the "daily entertainment" to the "medium-range goal" so that the medium-range goal can be reached faster.
3. From piggy bank to bank.
When the child is between 6 and 10 years old, when he can write his name, take him to the bank to open an account in his name. Before going, explain some basic banking knowledge to your children and tell them what interest is.