3 Piggy Bank System

Teach your children how to separate their money into spending, saving and giving categories.

Steps:

1. Obtain three piggy banks or three containers to hold change.

2. Label or have you child label the containers "Spending", "Saving (or Investing)" and "Giving".

3. Give your child his/her allowance in coins.

4. Explain that when you earn money it is a good idea to separate it into three categories. Ask you child why they think it is good to spend some, save some, and give some. Discuss this and answer any questions that he/she has.

5. Talk with your child and decide on an appropriate ratio for dividing up their money. For example:

1. Spending - 50%
2. Saving/Investing - 40%
3. Sharing/Giving/Donating - 10%

6. Count out their allowance and help them to divide the money into their containers.

Mark this activity as complete when you and your child have separated money into spending, saving, giving categories at least once. This activity is a much more effective exercise if it becomes a habit.

Track your progress and earn badges!

This activity is included in the following:

• Penny Pincher Badge