It has been more than a month since we taught Danielle to put money in her piggybank. This started one day when her trike’s front wheel was destroyed. She kept on asking for a bike every single day. Every morning, after waking up her first words are “Mom (or Daddy), we’ll bike at SM?” J. would look at me, the kind of look that says, Ok, we’ll go to the department store and get her a bike.
I thought that this should be a learning experience for my three year old daughter. So we had a meeting. I told J. that we will buy her a piggybank instead and teach her to put money everyday so she can buy a bike. Because she doesn’t have an allowance yet, we would give her some coins. She would choose on either buying it for jelly ace or putting it in her money bank. We explained to her that she needs to save before she can buy a bike. So, for more than a month, she religiously inserts coins and a few bills in her money bank.
This afternoon is D-day. I told J. that it’s time to open the piggybank even if it still not full yet. We will just match her savings and go buy the bike! It’s been more than a month of waiting….
So, we tore through the side of the piggybank to remove its contents:
Total count: Php 1,203.40. J. and I will match it to buy the bike in a short while.
What did I learn from this experience? Here are a few concepts that I got from the exercise:
Teach Kids to Save by having a specific goal.
Danielle’s goal was to buy a bike. It has to be specific. I believe kids learn easily. Anything we teach them (and if it shows in our example) would be absorbed quite quickly. It was easy to teach her that if she wants a bike, then she has to have money to buy it. In order to have money, she was to save for it. We can’t tell her to work for it (yet). But we’ll teach her this principle as soon as she’s ready.
Let them Wait.
Unless it’s an emergency, when we teach children to save, there should be a time frame. Let’s help them feel the pain of waiting. I believe it will help them teach the value of patience when achieving a goal.
Match their savings.
I always believe that good behavior should be rewarded. In Danielle’s case the reward part was us matching up her savings.
I hope you find this post helpful. Now it’s your turn-how do you teach your young kids to save?