There are many different techniques that you can try to use in order to teach your children how to save money. A lot really depends on their age as well. For younger children in the preschool, kindergarten age group I have found that the money jar works really well. All you need is an empty jar, or even an empty water bottle if you are worried about the jar breaking. Each time you have some left over pennies, or change you can give them to your child to place in the jar. They can earn more money, simple by completing some of their chores without being asked. Chores can vary based on a child’s age. Below are several ways you can go about using the money jar in order to help them with understanding the concept of money and saving it.
Teach the name of coins
Each day you can have them get out their coin jar, and help them learn the different names of the coins. Just tell them the name of the coins and have them repeat it back to you. Eventually they can learn to write the name of the coins or you can write it and who’s them. This is a good way for them to learn what each coin is.
Flash card game
The flashcard game can also be a lot of fun. You can create flashcard with the coin name on it and the amount of money each coin is worth. Then you can show them the flashcard and have them pick out the correct amount. At first you will have to help them with matching the right coins to the right card.
Count the coins
Once a week I would have my children dump out the coin jar so they could count up their money for the week. We recorded the amount found each week in a notebook, so that we could compare the different amounts each week. This way they would be able to see how their money can grow each week, if they don’t spend it. When they are ready for adding and subtracting, you can also teach them this method as well.
Exchange coins for bills
Once they have at least a dollars worth of change in the jar, you can exchange it for a real dollar bill. This will help them to also learn the value of money. Eventually you will also be able to exchange it for a five dollar bill, and even a ten dollar bill.