It’s never too early to begin helping your children understand the basic concepts of currency, its value, and the concept of saving. Creating healthy money habits can begin at any age, and Piscataqua Savings Bank gives parents the tools to make it that much easier on you and your children. Piscataqua Kids’ Bank provides children with a safe and fun environment to begin saving and to have personal economic experiences. Start creating healthy money habits at home with these simple, interactive ways to set your child on their savings journey. 

Learning to Count Around the House

The most basic comprehension of money starts with counting. Depending on your child’s age and where they are at in their understanding of counting, this will need to be tailored to their individual needs. Counting can begin with basic objects around the house and progress to coins and bills once they are comfortable with the concept. As they move forward, showing children different kinds of coins and bills, allowing them to recognize their differences, and grouping them into their own categories will further their understanding of money. 

Teaching Different Currency Values to Kids

Once your child has a basic understanding of counting and the differences between different coins and bills, you can move on to monetary value. Separating small coins and bills into their own categories and explaining the differences in their value is an important step. An easy way to do this is to take a blank piece of paper and divide the page into categories that reflect different monetary values (pennies = 1 cent, nickels = 5 cents, etc.). Once you have your categories set, allow your child to place coins and bills into their respective categories on the piece of paper. This is a simple, interactive, and visual way to further your child’s understanding of monetary value. 

Exchanging Money for Goods & Services

One of the most complicated aspects to teaching children about money is the concept of exchange, or teaching how specific amounts of money need to be given in exchange for goods and services. Understanding the concept of exchange is fundamental to understanding value and the purpose behind saving. One way to teach your child about exchange is to offer 10 cents (or whatever amount you are comfortable with) for doing particular household tasks or chores. Next, create a chart with small rewards that can be earned in exchange for specific amounts of money. This not only aids in understanding the concept of exchanging money, but also encourages them to save money for the things that they want. If you are not comfortable with the idea of an allowance, actual money may be substituted for something like blocks or stickers, or any tangible thing that can be traded for small rewards.

Learning to Save Money

Kids aren’t exactly known for their ability to delay gratification, so the concept of saving money often needs a visual component to stick. With Piscataqua Kids’ Bank, kids can get the hands-on experience of opening a bank account and watching savings grow with their very own passbook and Kids’ Bank Membership card. If you’d prefer to start saving at home, try using a clear container rather than a piggy bank so that kids can watch their savings grow in real time.

Developing Healthy Money Habits

Teaching the concept of money to a child is no easy feat in today’s digital world. With parents paying bills online, depositing checks with mobile apps, and using debit cards at the store, it can be hard for children to really grasp what those transactions are all about. Taking the time to teach children about money’s value, the importance of saving, and how money can be exchanged for things they want or need will help set them up with healthy money habits in the future. Opening a savings account with Piscataqua Kids’ Bank with your kids is a great way to teach money management skills and start them on the path to financial success. Having your child save up money and physically bring it into the bank to deposit creates a teachable moment that is sure to resonate with them for years to come. 


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