Importance of Teaching Money Saving Measures to Children

It wondered me lot when I traced the history of piggy bank and got that no one actually invented it. It’s an outcome of a potter’s mistake. The piggy banks' origin owes more to the history of language, than to an individual inventor. In old English, there was a word "pygg" which referred to a type of orange clay. People made all kinds of useful objects out of clay, including dishes and jars to hold spare change. Around the 18th century, the word "pygg" now sounded the same as the word for the animal "pig". An unknown person thought to shape a "pygg" jar, to look just like a real "pig". Perhaps an order came in for a "pygg" jar and the potter misunderstood. And this misunderstanding resulted in the invention of piggy bank. Piggy bank isn’t just a way of saving money, but this infuses many disciplinary rules in children.

Parents, all over the world want their children to learn about everything – from music and math to rocket science and every other subject to build their kid’s life best. However, they forget the most important and basic matter of financial decision. Important lessons about money and saving for child will teach them to make better financial decisions for them later in life. If we look at a piggy bang, we can notice that it has a slot to drop the money in it, but no provision to take out the money. We need to break the piggy bank to take out the money. Engaging children in a fun-filled discussion about what money is and how it works will help them learn the value of money.

Introducing children to money usage at an early age usually involves counting coins and bills as adults go about their daily activities. Using coupons and saving receipts shows children how their parents use and spend money wisely. Children also typically receive money and gift cards as presents for birthdays and at the holidays. Setting up a savings account and learning how to make decisions about spending the money helps children become responsible with their own funds. When parents teach money management to kids, they actually teach children their personal responsibility. This teaching makes children understand that they have a say in their financial future and that they will have much more control when they grow up. One of the most effective ways to teach children is parents need to set an example when it is time to save for child.