In this age of credit cards, auto loans, and mortgage payments, children need to learn how to be financially responsible. Those who acquire the saving habit early tend to be more financially secure later in life. Educating your children on saving is important.
Young children are natural savers.
Encourage them to make collections of stickers, rocks, and other objects that they can handle and count before you suggest that they set aside coins or bills. They need to know the coin and paper denominations and the relationships among them. Have your children use catalogs and newspapers to select objects that they would like to own and then have them use play or real money to count out the amounts for these objects. Show them how to handle a bank savings account. They need to learn how to fill out deposit slips and keep a record of deposits and withdrawals.