Saving money is intended to make a more costly purchase. Discussing this with your child and perhaps putting a picture of the item by the piggy bank is a visual way of teaching your child how to save up towards their goal. It is important to allow your child to handle the money and make the purchase once the goal amount has been acheived.
Age appropriate purchases for 3-8 year olds:
- Special toy
- Bike, skateboard, scooter, bike helmet
- Sports equipment eg. hockey stick, basketball, soccer ball, etc.
As your child gets older, the money from their Saving piggy can be put into a bank account in their name. Most banks offer accounts geared towards young children. You can take the money from this piggy bank one step further by talking to your children about money market accounts, mutual funds, stocks and bonds.