A child that is allowed to spend his money with no thought involved will learn nothing more than the act of spending itself. If a child is guided in his spending, for example, picking out a costly item, and saving up for that item, the child instinctively learns the act of saving. Kids today like to have visual reminders of their savings. A piggy bank can be visual, but easy access is not always good. The exception here is very young children, who like to keep counting what they have saved, and are learning as they count.
Older children benefit greatly by having a savings account.
They have the visual account book that lets them keep track of their earnings, but limits their easy access to the money, making them consider all purchases at least a bit. They also will learn about interest being earned just for doing nothing more than saving the money. Do not just take the child s money and open an account for them. Allowing the child to go with and actually participate in the activation of the account, can be a major learning experience in itself. If you bank online and understand the workings of access in this manner, and your children are old enough that you allow them to use the internet, you could also consider setting them up a savings account that offers an online feature.