Kids Ain't Cheap

But They Sure Are Worth It

Handling Allowance With My Daughter

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daughter allowanceI didn’t grow up receiving a regular weekly allowance. I can honestly say as an adult that this has played a huge role in the financial choices I made growing up. Since no one taught me, I had no idea how about money management. Sure, I played with monopoly (play) money in grade school for pretend math class assignments, and gladly handed over my pocket change when the credit union came each week to collect our money putting it into a savings account for us, but I really had no understanding of money. Even as I grew up and got my first part-time paid job in high school, I didn’t know what I was supposed to be doing with my paycheques. All I knew was that I was making my own money now and no longer needed mommy every time I wanted something.

 

The Importance of Allowance

For these reasons I personally believe allotting an allowance for kids is important. I plan on implementing a weekly allowance for our daughter when she’s old enough to understand what money is, probably around the age of six to seven. I want her to understand why she cannot  have something other than me just saying ‘no’. I want her involved in purchases that affect her and help make the decision. I need her to understand the importance of savings. All of these things cannot be fully understood with ‘play’ money.

Have you ever tried to play a poker game with fake money? The betting can get ridiculous because you have no real ‘skin in the game’ so-to-speak.

How Much?

Honestly, right now (her being seven months old) I don’t have an exact amount in mind that we’ll give her but it will be a percentage of money we plan on spending on her anyways. What I mean, is that we don’t necessarily plan on creating a whole new section of our budget for kids allowance, rather allocate money to her from money we would have spent anyway (clothing or shoes for her, school supplies etc). This way she can be involved in how her money is spent. As parents we are responsible for spending money on her for the next 18 or so years, why shouldn’t she have some involvement?

One option is giving a weekly amount (say, $3.00 a week to start) and teaching how to save a percentage and budget for things desired. When she gets older maybe we will make her  responsible for handling and helping budget for larger purchases like back-to-school shopping. Whatever option ends up working for us, the key is to have her directly involved in buying items so she can learn to respect money and understand that it is not an infinite resource.

I also don’t want to pay her only when she does household chores which is a common criteria for parents to award allowance. As a member of our family, when she gets old enough, she will have an unpaid responsibility to contribute to our household. Should she go over and above her required chores and do extra, she may be able to make some extra money, but I refuse to pay her for normal expectations.

 

Learn From My Mistakes

When we go shopping I want her to understand the importance of shopping with a list and sticking to it. This will teach her the importance of budgeting and planning. She will learn that if something is not on the list we won’t be buying it today, and if we (she) sees something while we’re out that she may want, we have to make a plan on how to buy it.

These are all tools I wish I had in my back pocket. Not that I grew up thinking money was an infinite resource, but I never appreciated the value of a dollar until I was much older and in a boat-load of debt. Everything I know about money is 100% self-taught. I still have a way to go but my hope is that through allocating a proper allowance and starting early enough my daughter can avoid the same paths I’ve already been down.

If you have kids, do you give them an allowance? How much?

Should You Buy a New Home Right Now?

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I just recently purchased my first home, so I’m intimately familiar with the stresses of making a mortgage payment. And it appears to be for good reason. Check out this chart I just found….

More than 40% of homeowners asked for help with their debt last year! That’s pretty scary!

And it definitely leaves me wondering…. Is this really a good time for people to be buying new homes? It’s obviously too late for me to rethink this decision, but I’m curious what the rest of you think. Is this a good time to be buying a home? Or is it simply too much risk right now?

Debt Consolidation Services

Are you suffering from too much debt?

Fund Your Kids with Forex

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Forex

A little extra income is always a good thing, so when you find a new way of making money, it can be very exciting. Forex for instance, can be a great way of earning money. The financial markets may seem like they are out of reach for the average person, but in fact, nearly anyone can invest. In fact, all you really need is to start a forex funded account with FTUK.

Here is some more information about forex, including how it works and who should use it.

How Forex Works

Trading on the forex market is all about speculating whether you think a currency will increase or decrease in value against another one, for instance GBP/USD. The ability to speculate on prices falling as well as rising is one of the reasons forex is so popular. Factors that influence your decision can include news reports on a country’s economic activity, fundamental analysis and complex technical analysis. If a currency looks like it’s going to strengthen, then it would be reasonable to invest money in it doing so.

There are a number of products associated with forex, and two of the most popular; spread bets and contracts for difference (CFDs) do not actually involve buying or selling currency. They are both relatively similar in that profits and losses are made by the amount to which a prediction is correct. A CFD is an agreement between buyer and seller to exchange the difference in price between the current value of a currency and its value at the end of the contract. A spread bet is simply when money is wagered on the fluctuation of a currency; with more being won the further the price moves in a favourable direction. Of course you can always follow the traditional route of actually buying currency and profiting from its increased value, or vice versa if you sell.

Forex is For Anyone

Now you’re probably thinking that this is all very well, but the financial markets are only for those with large investments to hand. This is no longer true, and you can in fact trade with hardly any money at all. This is done through leverage, whereby you only have to deposit a small amount of money in order to place orders of a much higher value. For instance, you may only need to deposit 100 units of a currency to buy or sell 10,000 units of it. This is great if you don’t have a large amount of capital to work with, but be aware that there are risks involved in forex, and you can potentially lose more than your initial deposit.

All you need to get started is some knowledge of how the system works, which is easily done by reading guides on forex trading for beginners. The ony other thing you’ll need to start is an online account with a good broker. It really is very easy to get involved. If you’re looking for some extra money and have thought about investment, then forex trading could be for you.

For More Great Kids Ain’t Cheap Articles, Read These:

Yes, Stay At Home Moms Can Get Loans

Yes, You Can Open Kids Magnetic Locks Without A Key

These Are The Best Travel Cribs For Twins

If you need Pac-Man Coloring Pages, Here Are Some Good Ideas

What Fate for Annuities?

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Use a calculator to determine your annuties rates
Image: FreeDigitalPhotos.net

As the Eurozone crisis rages, many people approaching retirement age will be worried about how they fit in to the wider picture of financial security – especially in relation to annuities, which have been falling more or less constantly in recent years.

An annuity is a regular income paid out in exchange for a lump sum, usually after years of paying into a tax-free pension fund. They’re intended to be guaranteed for life, irrespective of lifespan (although the amount in each regular payout is age-dependent).

What is the Fate of Annuities?

For the lucky few who retired when the market peaked, it’s all cruises and second homes. But for those currently awaiting an annuity, the outlook doesn’t look as rosy.

Pensioners have in fact been getting squeezed for longer than most, with many reports citing a year on year drop off in rates since the early nineties. So what is happening to annuity rates? And how can people prepare for them to continue falling?

In short, the ongoing financial meltdown in Greece has severely dented the confidence of many investors, who have moved their money to British and German bonds, resulting in rising prices and falling yields.

What About Other Investments?

Of course it goes much deeper than that. Increased life expectancy has lowered the returns for everyone approaching retirement, as has a move towards more gender equality between annuity prices. In the face of an aging population, many governments and banks are in denial about the prospects for pensioners, arguing that the rising value of bonds will compensate for lower rates.

But many people simply don’t invest in bonds or corporate funds, and are wholly reliant on stable annuity rates. Those feeling the pinch are advised to seek some alternatives for their future financial security, and to shift their focus away from traditional annuities.

Remember, once you buy an annuity the rate is fixed, so even if rates go up in the future, your payments remain the same. Cast around on the web by searching for best annuity rates UK, and look at alternative investment funds (this article offers some solid advice on investment) so you can stop worrying and start enjoying your retirement.

 How have lower rates on annuities affected your retirement accounts?

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What to look for in a Heat Pump Supplier and Installer

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heat pump installerIf you’re thinking of converting your home’s energy source to a greener source, you’re not alone. A lot of households all over the world are thinking of doing the same thing, not only because they’re concerned about the environment, but also because doing so would immunize them from the rising costs of petroleum and electricity. But what should you be looking for in a heat pump supplier?

Choice

Not all households would be compatible with air source heat pumps, and not all would be compatible with ground source heat pumps. You should choose a supplier which could provide both heat pump variant, and their heat pump models should all be efficient. Danfoss and Nibe are leading brands in the heat pump field. A company called Thermasys supply these brands across the UK.

Certification

Look for a certification from your country’s government that the supplier is accredited in the industry. This will help you ensure that you will get only top quality products. You won’t have to fear paying money for sloppy installation either. Look for a supplier that can offer at least 10 years service warranty.

Start to Finish

Not all heat pumps are made equally, in the same way that not all heating suppliers can provide the same level of service. You should be looking for both high quality heat pumps and a high level of service. Look for a heat pump supplier who would gladly inspect your home for compatibility for free. They should also not hesitate to provide support should anything happen to your heat pump once it’s installed. Some mechanically-trained clients claim that it’s easy to install heat pumps but you really should not attempt no matter how detailed the manual is. Choose a supplier that can install your pump for you efficiently as well.

Have you ever purchased a heat pump? What was your experience with it?

Who is the Best Personal Solicitor?

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judge solicitorHaving kids changes your life, there is no doubt about that. The fear that runs through my mind however is how to cover the costs of looking after my kids if i was ever injured. Luckily there are companies which will cover me if the accident wasn’t my fault.

Help When You Need It

Using this service I can ensure that bills are paid, there is food on the table and the kid’s wealth fare and my own are still put first. The most important thing you can do is try to recover from your injury, but that takes both time and money. You feel that you may be entitled to some form of reimbursement from the people who caused your accident, but are unsure of who to turn to for help. Getting help from a legal professional is seen as the ideal thing to do in such a scenario, but whom in particular do you approach?

How It Works

The reason why this is the case is that, when injured and out of pocket as a result of their injury, they want to try and make a compensation claim and get it done as quickly and professionally as possible. They also go to First4Lawyers as they deal regularly with cases relating to injuries caused by accidents on the road, at work and in public spaces all the time, so they have the relevant experience necessary in order to help you win the compensation you deserve for your plight.

There For Every Step

Among the things which they will do to help you include identifying whether you have a valid case, pointing out what you need to do during the claiming process and helping you every step of the way. Even on their website, they offer a 60-second test where you can find out for yourself if you can claim for compensation. If you’re looking to make a claim for compensation after your accident, you could do worse than going to First4Lawyers.

Have you ever filed a personal injury claim?

Redecorating on a Budget

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Painting a room is one way to redecorate on a budgetWhen considering moving to a new house, I am sure your mind will be filled with images of what new and beautiful things you would like to be surrounded with. I know for all three times that I have moved, I have bought one or two decorating magazines to get ideas about how to spruce up the place, add my touch, and make it at least a version of the place of my dreams.

I have also found though that moving on a budget is a trying and frustrating endeavor.  Imagine wanting all these pretty things, and some not even so expensive, only to add up all costs and find that you can afford maybe two of the twenty items you want to implement. If that is not an exercise in frustration I do not know what is.

Again, I have come up with my ways to redecorate on a budget and not only to save on money but also to save on feeling bad that you cannot get everything you want.

1. Recycle, recycle, recycle

This might be making bells ring in the heads of conservationists and environmentalists and, while I am all for saving our planet, I have to admit that that is not the first reason for this point.  When I moved into my second house, I found I greatly lacked in storage space. So, with the help of family, I was able to have new shelves and cabinetry added. Of course, my current house also lacked storage space (as most rental places seeming suffer from) so I ripped all this out and recycled all the wood. I didn’t stick them all in looking the exact same way, naturally, and I had to repairing them to match the paint of my new place, but it was still a whole lot cheaper considering I saved on the wood, the glass, and the fixtures.  I was also able to create a lot of new kinds of shelves and storage apace with all the wood as well.

2. Do-it-yourself

A lot of people need to have professionals do things for them.  I have to admit, my mom is one of these people. I watched as she sat and started mentally computing all the funds needed to pay pro’s to create an office nook, redecorate a certain Room, etc.  I had to break to her gently how she all of moi as her professional everything for this move. So, I put together an office nook by myself (using again old furniture, some repainted, some fixed up) and with little to almost no cost.  She was quite inspired because she was able to create a clothes line for laundry all by herself using my old lines and some handy foliage in the lot beside us. So now I don’t even need to buy steel racks for hanging!  Those cost about 4k rounded off per piece. That is a lot of money.  It is 2k shy of the cost of a .5 HP air conditioner.  But I digress. The point is, whenever and wherever you can, with whatever you have on hand, try to make/create what you need on your own. All you really need is a little creativity, your two hands, and some basic office tools.

3. Reinvention

This point is connected to points one and two.  As you recycle and start on your D.I.Y. tasks, you can also reinvent.  So, as I mentioned previously, I was able to create new kinds of storage from the old cabinet wood I brought with me from my old house.  And you can get as creative as you want.  I used old storage boxes as the table for my printer since my office is under the attic stairs and requires low and small furniture.  I used old plastic shower or bathroom racks as spice racks.  I just needed to take them apart to make them separate pieces, then paint them.  I used an old plastic trolley, took it off its wheels, took the three levels apart and created two separate, small shoe racks for the kids shoes- again, something that would fit a smaller space.

The point is, to save on professional fees, to forgo the heartache of letting go of signature pieces that you love but just cannot afford, try to look at what you have and get creative.  Priming, repainting, and reconnecting parts can all be done for a very minimal cost and taking things apart to make new things costs nothing at all.

What budget tips for redecorating can you share?

How to Navigate Life’s Major Financial Obstacles

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Buying a home is one of life's major obstaclesThe cost of living gets more expensive each year, but that doesn’t mean that you have to be continually strapped for cash. If you can learn the ins and outs of some of life’s most expensive rites of passage — such as having children and buying a home — you can make that knowledge work for you. Instead of stumbling through life, turn those financial obstacles into stepping stones with the advice below.

Buying a Home

Buying a home is likely to be the largest financial decision you will have to make in life. It is a huge commitment, but it is also well-worth it, considering that you want to provide a safe and comfortable environment for your children to grow up in. Given all of the uncertainty in the housing market, however, it’s understandable if you’re wary of becoming a homeowner at the moment.

The key to cushioning the blow that can come from the current housing market is taking your time to make smart, well-informed decisions. Don’t feel rushed to buy a home if you’re not ready; it is better to save up enough money for a down payment, which would be at least 20 percent of the total cost of the home in the best case scenario. You can also use this time to boost your credit, which is an important part of finding the best mortgage rates. Taking these steps can shave years off of your mortgage and thousands of dollars off of the total interest that you will pay on your home in the long run.

Having Children

When you think of growing your family, many things come to mind: little league baseball games, dance recitals, and family vacations, to name a few. But did you stop to consider a $227,000 bill? That’s how much you’ll have to fork over per child, according to the U.S. Department of Agriculture. And this only calculates costs up until age 18; a college education could easily increase that amount by as much as half.

Obviously, spending this more than $200,000 on your child will happen over the course of two decades, which should soften the blow. The most expensive areas of spending for a family include food, transportation, and child care, and if you can figure out ways to reduce these expenses, you can chip away at that astronomical cost. Couponing can reduce your grocery bill to practically nothing if you do it often and learn the tricks of the trade. And making an alternative plan for childcare (such as relying on a nearby relative or close friend) can help you save thousands of dollars each year. When it comes to college education, starting an education savings account early in their lives can significantly increase the amount of funds that your children have to rely on when they come of age.

Credit Card Usage

There are some areas of debt, such as education or home financing, that are considered positive because they make you a more valuable asset to your family, to your community, and to yourself. However, too often, parents get bogged down by credit card debt that quickly spirals out of control. The best thing you can do to help yourself chisel away at your card balances is to pay more than the minimum payment. Often, the just handing over very least you’re allow to pay each month won’t help you get out of debt; in fact, you may even see your account balance rise, even if you aren’t making any new charges on your card.

You should also consider switching your balances over to a zero percent interest card, which buys you time to pay them down. And if you struggle with budgeting, spending cash only is a great way to cut out unnecessary expenses.

Information is power, but in these cases, it can also equate to more money for you. There’s no handbook on how to provide for your family, but if you make it a point to constantly search for new ways to save and invest, you can put together a pretty helpful guide of your own.

What other obstacles do you foresee?

Start a New Business: Franchise Opportunity at Working Mums

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working momMany new mothers hate the thought of having to go back to work after their maternity leave finishes. Not only do they feel guilty about leaving their child with child minders they worry about missing those important firsts, steps, words and the rest.

Staying at Home is Not an Option

For many part time work is not an option, their wage does not cover the child care costs so many are turning to franchise opportunities to allow them to earn enough to live on but also the flexibility to spend time with their children and fit work in with their child’s needs. While franchise opportunities have a number of advantages they also have a few disadvantages which you need to consider. More information about franchise opportunity can be viewed at www.workingmums.co.uk and this of course will be even more relevant if you happen to live in the UK.

The Advantages

The main advantage is of course that you fit your work around you, your children and your lifestyle. Others include the fact that the ‘parent company’ or franchiser will give you support throughout the term you choose to work, they provide a proven business strategy, training and help you advance if you wish.

They will also give you a brand name and as such you will benefit from their advertising campaigns and they will allow you access to existing suppliers making it easier for you to build up your business to a level you feel comfortable with. On top of all this you are your own boss, you work the hours you want and the way you want. You can also keep your business small or build it up depending upon what you want from it.

The Disadvantages

While this sounds great it is important to remember the disadvantages of franchise opportunities before you commit to one. The main one people come across is the fact that the cost of buying a franchise maybe higher than they first thought. After buying the initial franchise you pay management service fees and any profits you make are shared with the franchiser.

Many franchisers also place certain restrictions on how you can run the business meaning it might not be possible to adapt your strategy to the local market. While you maybe safe working for a big business it is not uncommon for them to go out of business leaving you with no job at a moment’s notice, although the same could be said for any job.

Have you ever considered operating a franchise? Why or why not?

Family Business Where Kids Can Help

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family businessFinding affordable childcare can be a challenge. Because of this, many people are looking for a job that they can do with their kids. While many of these jobs are done from home, there are a few jobs that allow you to bring the kids with you.

The following employment ideas include jobs where you work for another person and business opportunities that the whole family can work on together. In the case of the businesses, it’s recommended that a family try out the idea before the parent or parents make the decision to quit their job.mmFor people who have little money for start-up costs, there are a lot of financing options. Business loans are the most common financing route, but they typically require a person to have a good credit history. A bad credit business loan can be taken out by people who are in this situation.

 

Education

The majority of day care centers, as well as many private schools allow their workers to bring their kids to work with them. In the case of many day care centers, the employees are offered free care for their children as part of the benefits package. Depending on the center’s rules, the children are allowed to stay in the same room where their parent works.

Many schools allow the children of their teachers and other staff (such as cafeteria workers) to attend classes there. In the case of private schools, this is considered to be one of the main benefits of the job by many of the people who work there. While children are often not allowed to be in the same classroom in which their parent teaches, they are often just a few feet away.

 

Home Based Businesses

Parents who choose to work from home and/or who own their own business have a lot of flexibility with their schedules and they can often plan to bring their kids to work with them.

For example, there are a lot of home-based craft and baking businesses that are operated out of homes. Start-up costs for most craft businesses typically just consist of the craft materials or ingredients themselves as well as some basic advertising. Depending on their age and ability, young kids can sort materials, attach price tags, and even assemble simple parts.

Older children can help out by photographing the items made and creating listings for them on internet sites such as etsy and craigslist. Kids of all ages can accompany their parent to the flea markets, swap meets, and farmer’s markets where the parents sell their goods. In fact, many parents site these places as a good way to teach their kids about the basics of a retail business. Kids learn good math skills, as well as how to interact with other people and a variety of sales skills.

6 Painless Ways to Save on Your Clothing Budget

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Budget Tips for Buying Children's ClothesI love buying clothes. Doesn’t it make you feel fantastic to be wearing something you truly love and feel amazing in? For me the answer is yes! Since becoming a work-at-home-mom, I haven’t really invested in clothes that make me feel awesome. Instead, I usually choose items that are more practical, this way when I get paint, glitter or glue all over them I don’t freak out. It’s not that I wear sweats or yoga pants all the time — I’m actually more of a jeans girl. Now that the boys are getting older and we are way past the spit up stage, I think it’s semi-safe for me to wear things that are comfortable but perhaps a bit more fashionable than what I have been wearing over the past 4 years. This means that I want to invest a little more money into my wardrobe but of course I don’t want to spend a fortune doing it either.

In the past (before kids of course) I would have headed to the mall and shopped my little heart out without considering what I was buying, how much I was spending or considering that I might be able to find the same item – or something similar – for less. But alas, those days are over. Actually, even if I wanted to be that frivolous, we can’t afford it —  plus, I have learned so much about saving money since having the boys that even  if money wasn’t an issue, I couldn’t do it without thinking about how silly I was being just throwing money away. So I have come up with some simple and painless ways to expand my wardrobe without busting our budget or adding credit card debt.

1. Shop Secondhand

I have learned a few things about shopping secondhand over the past few years. It’s easy and it can save you so much money!!! My secondhand stores of choice are consignment shops. I have taken the boys’ gently used clothing and toys to one of my favorite children’s consignment store in our area and have gotten some amazing deals! Depending on how much money I have earned from the sale of the boys’ previously worn items, I can get a bag full of “new” clothes for next to nothing. Even if I don’t have any credits I can still get great name brand clothing that looks new for an amazing price. There are women’s and men’s consignment shops too. At these stores you can purchase designer clothes for exceptional prices. Many times the items in these shops are not consigned because they aren’t stylish, often it’s because someone has either lost or gained weight — or they just like to clear their closets so they can buy more clothes. Go ahead, give secondhand shopping a try.

2. Visit Discount Stores

There are many stores such as Ross Dress for Less, Marshalls, TJ Maxx, Nordstrom Rack, and others who benefit from overstocks or store clearance. I have purchased some beautiful items for amazing deals. These stores are also great for purchasing fashion accessories, shoes, handbags and even home decor at super low prices.

3. Surf the Web

You can get some great deals by shopping online. Amazon, Ebay, Esty, etc. are ideal for finding good deals on clothing and accessories. Even shopping from some of your favorite department stores online can save you money. Many stores offer better deals online than they do in store because they don’t have the overhead of a brick and mortar store. Many stores offer free shipping if you pick the item up at a store near you. Be sure to check for coupon codes before you checkout; this will also help to save you money. Make sure you know the return/exchange policies before you buy. Most stores make returns and exchanges easy as long as you have the receipt. Shopping online also gives to the ability to quickly price check to find the best deals.

4. Shop Clearance

End of season clearance is the BEST time to buy new clothing. You can save 50%, 60% or even 80% when stores are clearing out thir inventory to make room for the new season’s fashion. I just picked up a Simply Vera (Vera Wang) purse for $25 it was regularly $125. I almost bought it when it was 1/2 off but decided not to since Christmas was just around the corner. Boy am I glad I waited. It certainly paid off! Often times you will still get a lot of wear out of an item before the season actually ends. It’s January and I’ve already seen bikinis and other summer fashions proudly displayed (at regular price) in stores. I bought a swimming suit last year for 75% off because it was September. I don’t have to worry about getting one now, I just have to worry about getting in shape so I’ll look good in it.

5. Make the Old New Again

Take inventory of what is already in your closet and find new and exciting ways to wear them. Mix different pieces, patterns and colors together. Just take some time out to play around with the clothes you already have. Put things together you may not have thought of before; you might be very surprised how how good certain things look together. You can also buy new (or new to you) clothing pieces like sweaters, jackets, scarves, hats, etc. to jazz up these well-loved ensembles and make them feel fresh and updated.

6. Host a Clothing Swap

Get some of your favorite girls together and even some of their friends and host a clothing swap. These ladies can bring in things that they are tired of, don’t fit in or wonder “Now why did I buy this? This is so not my color.” Make a fun girl’s night event out of it. If you want to bring along kids clothes to swap to, that can be double the fun. Get creative and enjoy!!!

I hope I have been able to give you some great ideas.

Do you have any other tips on how to save money on your clothing budget? I’d love to hear them!

The Piggy Bank Saga

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Ok, so I know I have been blogging about embarking on the wonderful journey of explaining money and budgeting to my kids. Well, turns out, it isn’t as easy as I thought it would be. It Is so hard to teach kids about budgeting when they have a very, very simplistic view of money.

Before you roll your eyes and say ‘I told you so!’, let me just say that I haven’t given up on this project.  In fact, I enlisted the help of my mommy friends (who also happen to be Psychology majors) to give me some tips and ideas about how to do this without breaking my brain.  Here is what I have come up with:  THE PIGGY BANK SAGA.

Ok, I know. You are probably saying ‘but the piggy bank is old news’.  Well, there is a lot of value in things that have lasted decades, and this little object is one such thing.

Some background to the idea behind the pig

Turns out, the piggy bank has been in existence for apparently 4000 years and way before money saving websites like LoveMoney.com! Way back when, when every object was made of clay, jars were created to store money. These were called “pygg jars”, ‘pygg’ here referring to the kind of clay used to make the jar.  By the 18th century, this object began to take the shape of its animal namesake and was made from plastic, plaster, or glass.   Another explanation states that, based on German folklore, a pig is a symbol of good fortune, therefore a vessel for money in the shape of a pig means more wealth or coming wealth.  Whichever history you believe, today the piggy bank is defined by Wikipedia as:

Piggy bank (sometimes penny bank or money box) is the traditional name of a coin accumulation and storage receptacle; it is most often, but not exclusively, used by children.

Here is a picture of a piggy bank (c’mon, humor me here).

traditional piggy bank

Ok, so here is the idea. Take the generic piggy bank and have one for saving, spending, and donating.  First of course, you need to define the terms. I use the most simplistic explanations so I would say something like saving is when we keep the money so that we will have enough to buy ‘x’ item.  Thankfully my son and daughter know the word ‘buy’ so I don’t need to explain that term anymore. Donating would be giving and spending is using the money to buy ‘x,y,z’ items. Or something along those lines, you get my drift.

What a Piggy Bank Teaches Your Kids

I am thinking, and my mommy-psych major friends agree with me, that this will teach the kids the following things without the trauma of deprivation.

  • One, it will give them the idea that there are different actions connected to money.
  • The general idea behind saving, spending, and donating.
  • The value of patience.
  • The value of waiting for something.
  • The value of effort for something desired.

Different Kinds of Piggy Banks

Doesn’t it sound like a marvelous idea?  It is so great when you can teach so many lessons with one simple thing.  It is really easy to start on this project. The materials you will be needing are very inexpensive.  All you need are three piggy banks, or one that has segregations.  If you want to use separate piggy banks, getting the ones with see-through body is best as it give a visual picture of the theory/lesson/activity.  See the pictures below:

piggy bank countersee-through piggy bank

 

 

 

 

 

 

 

About money and budgeting, you don’t really HAVE TO stick to the traditional piggy bank (although there are a lot of really cute ones for boys and girls these days).  You can opt for other money carrying objects:

It does not really matter what you use, as long as you get the point of the exercise across.

Now, you also don’t have to go out and buy any kind of money saving vessel.  You can use any old jar, tin, or container.  A lot of my friends save the pretty seasonal tins for tea and use those for odds and ends.  That would be perfect for this project.  Similarly, you can use any mayo jar or cheese spread jar, create a slot for the coins and bills, and you have your pot! A suggestion to get the kids excited is to have them decorate their piggy banks. I know the idea of arts and crafts really gets my kinds excited and quite dedicated.

So, I hope you see some merit in this simple money-saving lesson plan.

 Do your kids have a piggy bank? What do you think of using multiple banks for different purposes?

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