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.
Why Start Early?
Building money awareness early helps kids:
- Understand the value of earning and saving
- Develop delayed gratification and budgeting skills
- Grow confident in making smart financial decisions
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.
Teach Currency Values with Visuals
Show kids how different coins and bills are worth different amounts.
Try this fun, hands-on activity:
- Take a blank sheet of paper and divide it into columns: pennies = 1¢, nickels = 5¢, and so on
- Let your child place the correct coins or bills in each section
- Practice adding values using real money
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.
FAQs: Teaching Kids Healthy Money Habits with Piscataqua
- What age is a good time to start teaching my child about money?
You can begin introducing basic money concepts as soon as your child is old enough to count. Even preschoolers can learn by sorting coins or using play money. As they grow, you can introduce ideas like saving, spending, and exchanging money for rewards or items they want. - How can I make saving money more engaging for my child?
Use visual tools that let them see progress, like a clear jar or savings chart. You can also open a Piscataqua Kids’ Bank account, where kids receive a passbook and membership card, making saving feel more official and exciting. - What if I’m not ready to use real money with my child?
You can start with tokens, blocks, stickers, or any small item that can be “earned” and exchanged for rewards. This helps kids understand the concept of value and trade without needing to handle actual currency right away.
Start Their Savings Journey with Piscataqua Kids’ Bank
Ready to take the next step? Opening a Kids’ Bank account is a great way to turn money lessons into real habits. Visit us at 15 Pleasant Street in Portsmouth, NH, or open an account online at piscataqua.com
Let your child deposit money in person and build a real connection with their bank. It’s a hands-on moment they’ll remember for years!
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