April 24 is National Teach Children to Save Day. Teach Children to Save Day is a free national program – sponsored by the ABA Foundation and its member banks – that works to help young people develop a savings habit early in life. In celebration, Iowa State Bank recommends using these strategies to introduce your children to the concept of saving.

Help your child prepare for adulthood using a few creative and fun ideas including:

Start Saving With a Piggy Bank

Piggy banks are a simple and effective way to introduce young children to the idea of saving. Piggy banks allow the idea of saving to become tangible and visual. In addition, piggy banks come in all shapes and sizes, so parents can make saving more engaging by encouraging their child to pick out whichever one they want or by having them decorate the piggy bank.

Make a Savings Chart

Parents can also teach their children to save using a sticker chart or other visual representation. Parents can teach their children to set small, achievable goals, then use the sticker chart to track the child’s progress toward the goal. Once the child hits their goal, reward them to positively reinforce the idea of saving and to help them stay motivated. The reward could be anything from a new toy to a family movie night. Beginning savers might find a "coin chart" that allows youngsters to place coins in individual cardboard slots on a large cardboard "sign" to be another tool. 

Use Chores with an Allowance

Allowances can be useful tools, especially when tied to completing age-appropriate chores. This teaches the child the importance of earning as well as saving. By incentivizing children to complete their chores, parents demonstrate that hard work and responsibility pay off in the long run.

Beginning savers may find creating three savings jars another effective saving technique. Designate three jars -- spend, save & good causes. You can use a variety of containers and crafting techniques. By designating three jars, you can show young savers the rewards of saving while helping to make wise spending choices -- and share or donate to causes that may be important to your child.

Play Games

There are many board games that teach children about the value of money. Have a family game night and play Monopoly, Life or another financial-themed board game as an easy way to explain essential money skills to children. These games may teach children how to count money, make transactions, budget and more.

Visit Your Local Bank

To teach children how banks work, bring them to your local Iowa State Bank office. Parents can show their children how they make deposits and withdrawals. In addition, parents can ask the banker to explain how money is handled, and how an ATM works. Your banker may show you how the bill counter or the coin counter works when your child brings in their piggy bank money. Bringing your children to the bank makes it a familiar place to visit when it is time for your youngster to open a checking account. Help your child open their first savings or checking account if they are ready for that step.

By teaching children the importance of saving, starting at a young age, parents can set them up for a lifetime of financial responsibility. By using these strategies, parents better equip their children to reach their financial goals.

This message is provided as a courtesy of the Iowa Bankers Association in partnership with Iowa State Bank, Algona.