“I want to play that piggy game!” my three-year-old said when we discovered the Great Piggy Bank Adventure at Disney World. I saw a fun way to introduce money skills; she saw a friendly looking piggy bank. Win, win, right?
Reason Number 6: Why Piggy Banks Don’t Teach Your Kids Money Management It’s no surprise that piggy banks are loved and adored the world over. Money is a big deal to a kid. That cute little container is usually the first connection a child has to having and storing money. A piggy bank gives a [...]
Reason Number 5: Why Piggy Banks Don’t Teach Your Kids Money Management
In previous posts, we looked at why piggy banks don’t help your kids learn about money management using ATM cards and debit cards. Now we’re going to look at the 800-pound gorilla in the room, credit cards.
Reason Number 4: Why Piggy Banks Don’t Teach Your Kids Money Management
When we let our kids play with toy cars, or toy stoves, we know they are playing with a kid’s version of the real thing. We also know that as parents we want to help them master the skills they need to actually drive a car or cook dinner. Learning to master adults skills means that kids eventually need to move beyond toys.
Reason Number 3: Why Piggy Banks Don’t Teach Your Kids Money Management
Somewhere right now a parent is saying, “We can’t buy that because we don’t have enough money.” No problem thinks the child, who helpfully suggests, “Then let’s go to the machine and get some.” To a kid an ATM is like a magical piggy bank.
Reason Number 2: Why Piggy Banks Don’t Teach Your Kids Money Management
A piggy bank is an inert artifact that uses only one form of money, namely cash. Does a piggy bank teach your child how to use checks? Typically, when a child receives a check, parents “cash” the check, then direct the money to some account the child has, maybe savings, maybe checking, or simply hand over the cash. All the kid learns is that a check is a piece of paper that may or may not be cash.
Here is first reason why you should retire your child’s piggy bank. This is only the beginning. Come back often to read more about why your kids need to learn how to manage virtual money, money they can’t see or touch.
Reason Number 1: Piggy Banks Are Not Banks
Why are we trying to teach our children how to manage money? If the answer is, “So they will be able to manage money as adults,” then why do we give them gimicky tools and unrealistic guidelines? (Yes, I’m talking about giving kids cash and four-chambered piggy banks or envelopes labeled: save, invest, donate, spend.)