Teaching the Value of Money

Piggy bank with coins

Teaching the Value of Money

In a recent GoBankingRates study, 69% of adults admitted to having less than $1,000 in the bank, while 34% said they actually don’t have any savings at all. But apparently, this collective lack of savings doesn’t get all that much better with age. A study by the National Bureau of Economic Research found not so long ago that almost half of Americans die nearly broke. Of the general population, 46% of retirees die with savings of $10,000 or less. But that number climbs to 57% among retirees who are single.

It is never too early to start teaching children to save, these days toddlers know what money is, and by the age of two with your help, they can buy an article and have even learned what the coins are.

Climbing piggy chart

 Source: http://www.freedigitalphotos.net/

My Thought’s about Children and Saving

Children have lost the way to save these days as EFTPOS and Credit Cards have taken over the money scene, they never see real money.

All children ever see is a card that is added to a machine and out comes money or a card pay’s for the articles they buy, the young ones never ever see coins or paper money, so how are they to learn about the value of money.  

A program in responsible cash management could be a good idea in schools, at a young age. This would give children with parents who are dysfunctional in that area a chance to not follow in their footsteps and perhaps teach them how to save.

Teaching some of the complexities of money at an early age (in terms the child can understand) helps to set a regular practice of viewing money as a means of subsistence and not a ticket to the mall.

In many cases just teaching the children to put their money in a bank won’t teach the value of proper handling of money if the parents are spendthrifts.

Maybe it would be an idea for your child’s fifth birthday, buy then a money box and start them on their way of saving, add some money every year on their birthday.

Money Box NZ coins

Learning to save at school in the 1970’s

Schools do not teach the skills these days to learn the value of money as they did back in the 1970s when my children were going to school.

In New Zealand the Post Office had a weekly banking where children learned to fill out a form and bank money every week, watching the amount mount up weekly, they would get paid interest at the end of the financial year on their savings.

I remember mine would come home from school all excited how much money they had in they Post Office account sometimes they would just sit there looking at this all-important bank book, I used to wonder what was going through their minds.

This saving habit was only done at primary school, once they went to high school it was transferred to a bank account which they open themselves had a talk with the bank clerk which made them feel very important and started them on their career of work and saving a little every week of their earnings, they would bring their bank account to me to see, so proud of it and I was very proud of them.

By the time they were ready to set up their own home they had already set up a good relationship with their bank which continued on through their life, but all children are not as lucky as this to know the value of saving and setting goals for their future.

Now in the twenty-first century, there is not enough encouragement for children to save, they receive a few dollar, run to the nearest store and spend it no idea about saving, I see it around me all the time, so much money wasted on sweets or just plain junk.

70 year old piggy bank

I know even though I don’t need a money box to save money I really enjoyed that little piggy above, I received for my seventh birthday at a family get-to-gather.

That day (My Seventy Birthday), it made me feel so good, as I watch my family, add a few coins in it, watch by the grandchildren and great-grandchildren and now some nearly seven years later when they visit they ask me how much money I have saved?

I do add some occasionally. One day whoever breaks that piggy will get a surprise how much money is in there.

I’m sure my great grandchildren will never forget that day, on my seventh birthday.

Looking forward to your thought’s about teaching children the value of saving.


  1. Such a sweet piggy. That post office scheme sounds great! My grandfather was a bank manager, so the sense of savings being important got through somehow; I’m not sure how I was taught. I think before they’re able to really understand, having that sense of accomplishment would be important for children. Getting paid interest is a good way, but parents could also give rewards in other ways when they reach a milestone (eg., extra technology time).

    Liked by 1 person

  2. I feel the teaching and firmness here also comes from the parents. Make it fun to save and see what happens. One of my children even enjoyed at early age to do her own “balance sheet”. Income, expenditure, prognosis.:)
    Sure there was the treats to but not for all of it.
    I am sure expected gifts were taken into account.:)
    I also opened account for them that they could use in conjunction with my agreement.

    Liked by 1 person

  3. Woahh man!! Brilliant peace of writing. This blog is 💯💯💯❤.please visit my too it will be my pleasure that gr8 bloggers you visiting. But still dude you rock. 🙇🙇🙇🔥

    Liked by 1 person

    • Very true, it needs to be taught at a young age, otherwise what is the future, we cannot rely on the state to house and feed everyone in retirement if they haven’t saved anything throughout their life.
      Thanks for commenting, have a nice day.


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