I was thinking about the principles of the piggy bank. It is a child’s first economy, a mixed cavern of dollars and cents, gifted to them, earned by them, and found by them. It is the earliest practical lesson in mathematical skills – to save and withdraw. Children learn the sounds of money, bills and coins, the sounds of empty and full, and the associated feelings. The piggy bank is foundational in a child’s financial literacy. 

So if you are wondering, once the piggy bank is full enough, when is it time for next-level financial training? It depends—the parent’s crystal ball does not exist. 

As children and parents mature at different rates, there is no one way or determining factor to say when it is time for financial nudges. All of us can watch for signs that our child(ren) is fully engaged with the piggy bank. Is there a readiness to put money in the piggy bank? Do they shake the piggy bank often with curiosity? Do they try to dislodge the contents from the bottom of the piggy bank? It might be time to elevate this money game.

What’s next? The Custodial Kid’s Savings Account is a great learning opportunity.

A savings account is one of the first recognized products a child can have, outside of a library card, in their own name. A minor’s savings account is a teachable moment about cash-on-hand versus bank money. It is also a viable option to safely save the child’s money and help develop responsibility and ownership opinions. With parental guidance, this next-level strategy can help expand the child’s financial bandwidth. As their capacity to make deposits grow, so does their ability to dream about purchasing and investing. 

The piggy bank is designed to be outgrown. Level up!

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