One of the best ways to begin teaching children about personal finance is through piggy bank. While most people think of the piggy bank as simply place to deposit coins and bills, it can also be an excellent teaching tool about some of the fundamentals of personal finance.
While the standard piggy bank will do, there are now a large variety of piggy banks that have been developed specifically to help teach kids about personal finances. Choosing one of these banks can go a long way to helping your child understand that there is more to personal finance than putting away money to spend later.
It's also important to remember that you'll have to do more than simply give your child piggy bank. You'll need to spend some time talking with your child about the best ways to use the money that they do receive. By talking to your kids about personal finance and helping them decide the best ways to use their money, you will begin to lay a solid foundation for money management.
Be sure that you also take the time to live what you preach. If you are going to explain to your child the importance of saving, spending, investing in donating, it's important for you to also do these things and to show your child when you do them. This will reinforce those basic personal finance concepts so that they will have them well ingrained when they are older and have to do all their personal finance on their own.
