In general, involve your children in discussions about money and create an environment where they can ask questions. Because young children don't understand abstract ideas, use concrete techniques to introduce money concepts. Have children pay for an item at a store to show that money is exchanged for goods. Encourage saving by giving your child a fun piggy bank, like one that plays music when a coin is deposited. Decorate separate envelopes or boxes for spending and saving money.
Parents can hold onto the savings for safekeeping.
Elementary-Age Children Children are excited to learn, so use everyday situations to teach money management lessons. Open a savings account for your child. Then explain how banks and interest work. If you start giving your children an allowance, consider requiring that they save a portion. Make it a big deal when children reach their savings goals.