As I grew up, no one really taught me how to manage the money I made. In one way or another, it somehow affected how I was to approach the concept of banking later in life. It proved harder to master the concept of banking, or more so how to save money, and save it for the long term. This is why I vowed to teach my children the basics of saving and banking, right from when they were able to tell the difference between a nickel and a dime.

So, how money savvy is your kid? Is the concept of banking so alien to your children it feels like something picked up from a fiction movie? When it comes to managing finances, especially issues relating to banking and saving, the earlier you introduce your kids the better. Teaching kids about money and banking will arm them with a useful tool that will prove useful for the rest of their lives.

At this time and age, you cannot take chances with financial literacy of your children. We cannot rely on our "efficient" schooling system to teach our children about money. With the global economic crisis tearing down economies all over, we can only assume the responsibility of preparing our children for the difficult times that await them.

With that in mind, how then do you introduce your kids to banking? In many families, talking about money is taboo. The parents make the money, children as for it and that's it. Teaching kids about money & banking for the first timer can therefore prove to be a challenge. The worst case scenario is making it so complicated your kids end up resenting money or banking altogether. As a parent, you are a friend, a warm figure of authority and a sanctuary of some sort to your kids. Incorporating these elements with the teaching will bear fruits faster. Key thing here is to keep things fun.

Secondly, ensure by the time banking is introduced, they can tell how a dollar looks like and why a dime is worth more than a nickel even when the latter is larger. With a good background on money matters, your kids will be more open the idea of banking. With that in place, introduce banking in bits. Explain what is and how a bank works. Children learn more by seeing. Take time out of your schedule and take them for a tour to a bank, introducing the staff members and various important elements in the bank. Open a bank account for your kid while at it.

When they understand the concept of saving and banking, get your kids a piggy bank. While it looks nothing like the real thing, it operates on the same principle. Make sure your kids see the similarity between a piggy bank and a savings account. When they save enough, take them to the bank and deposit the funds in their savings account, or the "big piggy bank".

There are several cool sites you might want to check out. They really have more ways to teach your kids about money.

Teaching Kids About Money
Kids & Money