The Piggy Bank Challenge: Teaching Children Smart Saving Habits

Teaching kids about money can be a daunting task. Finding ways to make it fun and simple often leads to success, and helps your kids Live Better Financially!  One way to do this is creating a Piggy Bank Challenge.

The Piggy Bank Challenge is an effective, low-pressure way to introduce children to financial responsibility. Here’s how the challenge works: Encourage them to deposit a portion of their allowance or earnings from chores into a piggy bank each week. This tangible habit helps them experience the reward of watching savings accumulate toward a meaningful goal, such as a special purchase or family activity.

Strong savers prioritize future benefits over instant gratification. One reliable framework is the “Save, Spend, Share” system. This system divides money into three categories. Direct your child to deposit the largest portion of their chore money (or allowance) to Save for long-term goals, a moderate amount to Spend on current wants, and a smaller share to Share for charity or gifts. This method builds budgeting skills, patience, and generosity.

Practical ways to support your child:

1. Open a children’s savings account. Seeing small amounts of interest earned makes the concept of growth concrete and motivating. Take them with you when you open their account. 
2. Provide matching contributions (optional). Match 25–50% of their saved amount to reward consistency and demonstrate how contributions accelerate progress. 
3. Establish clear goals: Work together to define specific, achievable goals and track progress with consistency. Do a fun weekly check in and celebrate milestones. This will help maintain enthusiasm. 
4. Model healthy habits: This is probably the most important part of teaching financial wellness. Share age-appropriate examples of your own saving decisions. Children absorb lessons most effectively through observation. Openly talking to your kids about money removes the stigma of anxiety or ignorance that is sometimes felt around money discussions. 

These early experiences create lasting financial confidence and decision-making skills. The Piggy Bank Challenge requires minimal setup yet delivers significant long-term benefits. Start today and watch your child grow into a thoughtful saver and Live Better Financially!