This is an interesting way to teach your child about short and long term goals. For example, use a big jar to contain savings for more expensive items such as a skate scooter; and a smaller container for more affordable ones like a new pencil case. Get your child to draw the labels for each jar.
Once your child has identified his savings goal, you can help him make a chart. First, divide the savings goal into steps. For example, if the goal is to save S$50, divide it into 10 steps so that every time he saves S$5, he can place a sticker. This way, he can visualise getting closer to his goal as he goes along.
Using the savings chart, you can reward your child if he saves more than the intended amount or reaches his goal earlier than planned. Teach your child concepts of interest compounding by offering a bonus if he does not ‘withdraw’ the savings for an agreed period of time.
You can encourage your child’s savings habit by reminding him whenever there is an opportunity to save more; for example, when he receives ang baos during Chinese New Year. Participate in his efforts by bringing him to the bank to deposit his savings when the containers are full.