Saving money, or postponing spending, is essential since it enables people to meet needs they can meet in no other way. Saving money with specific goals in mind is highly recommended. Unfortunately, the principle of goal-oriented saving does not mean much to young children, since their goals usually are not well defined and they are not inclined to delay their gratification. Preteens may save for clothing, gifts and special ventures, but most elementary school students neither understand nor care about long-term savings. In time they are likely to do so, if parents encourage them to save money according to their abilities and interests at each stage of development.
Piggy banks can introduce children to the idea of saving money.
There's nothing wrong with forming the habit of dropping pennies into a piggy bank, without thinking about what they will be used for. But savings takes on a whole new importance when you have a goal in mind. Saving for a goal can inspire children to take control of their spending habits and to plan for future needs. When your children have gained some experience in handling money, it is probably time for them to open a savings account. Choosing a bank or other savings institution can teach them a lot about the world of money.