What Savings Accounts Teaches Kids

Growing up, I wasn't taught how to save money. Maybe it was because we didn't have a lot of money to save. I'm not sure, but I've been trying to teach my kids how to save money and what the value of a dollar is.

Three out of four of our kids have their own savings accounts and our youngest toddler has one but it's in our name yet (until she's old enough to sign her own name for her own). They save birthday money, other monetary gifts, tooth fairy money, and allowance when we were giving it. They make a goal on what they want to buy and they save for it. My 11 year old daughter has been saving over a year for a piece of furniture she really wants.

I have found that them having savings accounts has come in useful many times. When they ask for something as all kids do (video games, toys, etc.) I tell them they'll have to use their own money to buy it. They will then think about whether it is worth spending their own money or not. I have to say that 99% of the time, it's not worth it to them to spend their own money. It has given them a little perspective on the value of money that they wouldn't have when I just tell them I won't buy it for them with my money. They "get" it when it is their own money on the line. It's been a great lesson for them.