How to teach kids to save money (the piggy bank method)

Saving is hard because the reward is far away. Children learn it best when the goal is close, visible and theirs. This is the piggy bank method, the same idea behind Bip's coins.

Step 1: Give money a place

A clear jar or piggy bank works because children can see it grow. For younger children, use coins they can hold. For older ones, a notebook or app that shows a balance works too.

Step 2: Choose a goal together

Ask what they want. A goal such as "a LEGO set" or "20 minutes more at the weekend" is much more motivating than "save for later". Write it down and put a picture on the jar.

Step 3: Split the money

Use three jars:

• Spend: to use now
• Save: for the goal
• Share: for gifts or giving

Start with a ratio that fits your child, such as half spend, half save.

Step 4: Make waiting rewarding

Offer a small bonus for waiting, like a family version of interest. For example, add a coin for every week the savings are untouched. Bip's piggy bank does this: keeping coins for a week earns a small bonus, a first lesson in how saving grows.

Step 5: Let them choose, and make mistakes

When the goal is reached, let them decide. If they spend it on something they regret, that is a lesson that costs little and teaches a lot. Resist the urge to rescue them.

Make it visible

Draw a thermometer on paper and colour it in as money is added. Count the jar once a week and talk about how much more is needed.

By age

• 4 to 6: coins, a jar and a goal a week or two away
• 7 to 9: three jars, a goal of a month, simple sums
• 10 to 12: a bank account, comparing prices, saving for bigger goals

Connect it with time

Many children value screen time more than money. Letting them save and spend game time teaches the same lessons. See earn screen time, and kids' allowance.