Part of this process can include either taking your child shopping to pick out a piggy bank, or sitting down with her or him, and helping to make one. Either way, this is something that will allow your child to be involved “hands on” from the very beginning. Be sure to explain the purpose of the bank to your child as you go.

Once the piggy bank is in its special place in your child’s bedroom, you may start off by donating the first bit of change to go in it. Give this money to your child and allow him or her to drop it into the slot. You will most likely be rewarded with smiles of pure pleasure and self satisfaction as that first bit of change hits the bottom of the bank.

The next step in this learning process involves any money that your child receives for birthdays, holidays, or other special occasions. When relatives or friends choose to give your child money, explain to the child that he or she is allowed to keep out a certain amount of the money to spend for something special. After that money is removed, give the child what’s left over with instructions to put it in the piggy bank.

A large part of the fun with piggy banks is when they become full. This often happens faster than you think. When the bank is full, you and your child can sit down with it, pour out all the money, and count it. Let your child help in the counting process so it’s easier to see just how money can add up when it’s saved. This is also the point where you and your child will decide how the money should be used. You can open a savings count for your child, or there may be something truly special your child wants to spend the money on. Either way, it will be easy to see that putting change into a piggy bank WILL add up. This will set your child on the right road to managing money for the rest of his or her life.