Piggy bank

If you have money in your piggy bank, it’s good to learn how to save! Saving money gives you more choices for your future. Ask your parent or another grown-up to talk with you about what money is, why we have it and how to use it.

Note to parents and caregivers: Helping your child understand what money is and how to use it responsibly is a skill that will last a lifetime. More and more children in the United States are in debt before they even reach age 21. The following tips and websites can help you teach your young child the basics of financial literacy so she knows what money is, how to use it and how to set financial goals.

• Let your child see you paying bills and buying groceries so he understands what money is used for. Seeing you spending money wisely will help your child understand how to be responsible with money.
• Play fun “money games” with your child. Set up a grocery store at home with old boxes and cartons and let her buy food or play cashier.
• Let your child help donate money to a worthy cause that your family supports, or let her help you take food to your local food bank. This is a good chance for you and your child to talk about money and help your child build compassion for others.

Here are some Web sites to help your family learn more:

• FunBrain.com Change Maker
   
• Jump$tart Coalition for Personal Financial Literacy
   
• The Federal Reserve Bank of San Francisco’s American Currency Exhibit
   
• The U.S. Department of the Treasury For Kids