Lending Club Blog

Virtual Piggy Banks

The number of financial products geared towards children continues to grow. Starting children’s introduction to money and finance as early as possible will help them to learn about a subject that generally isn’t covered in schools. Many new product offerings take time-honored traditions like chores, allowance, and the piggy bank and move them online.

One such site, MyRewardBoard.com, was recently discussed in this article. There are many similar offerings with various levels of services, fees, etc. The way these sites generally work is that parents can set up a list of chores, the required frequency, and a value associated with each. Children can then login to see what they have to do, update status when chores are complete, and view their virtual piggy bank balances.

Some sites actually handle real money so that allowances can be paid out in cash, gift cards, or online merchandise credit. Other sites, such as Smartpiggybank.com, allow you and your kids to track their money in a virtual piggy bank without having to handle physical money or calculate interest yourself.

All of these sites have positive attributes, most notably that they open the door to conversations about money with your children. For kids completely inexperienced with money, having real allowances and piggy banks is probably a better starting point. Money is abstract enough without having to add the abstraction of the virtual world.

You can easily create paper copies of the chore lists as well, and kids might get more satisfaction from seeing a star or a fun sticker placed on their lists versus clicking a check box online. I know that when I was younger, I would often take my money out of my piggy bank, count it, and imagine all of the possible ways I could use it. That’s something that will likely be lost as things move online.

Once kids have some real-world experience with money via allowances and piggy banks, I think going virtual is a helpful approach. When kids are a little older, using an online tracking method may provide excellent training for their future use of online banking. It opens up even more avenues of conversations between parents and children. Perhaps you’ll want to show them how you log in to your Lending Club account and manage your P2P loan portfolio.

Showing your children that you have an online account (just like they do) may give them more incentive to learn about personal finance. Whether or not they’ll be better about doing their chores remains to be seen, but if they learn a little extra about money by bringing the experience online, then it will certainly be worth it.

Friday, November 30th, 2007 at 5:38 am

Comments (2)

  1. I created an online virtual piggy bank to help teach my kids about
    money, and they love it! It was a real blessing for me as well
    because I no longer had to worry about remembering to give
    allowances or having the correct change on allowance day. The
    virtual piggy banks are really cool and have most of the advanced
    features of online bank accounts. I highly recommend it, it makes
    allowances simple. Check it out at
    http://www.littlemoneybags.com/dontfollow.

    January 2nd, 2008 at 6:41 pm

  2. A couple of years ago, we started an allowance for my daughter when
    she turned five. We wanted track allowance and chores as well as be
    able to see all the info on our phones when we were out with her.
    After looking at the alternatives, I built a new site that did all
    that plus automatic savings accounts and charity. We also needed to
    track good things she did to earn “points” that she can redeem for
    privileges rather than money, so it supports that too. Let me know
    what you think: First Kid Bank.

    September 3rd, 2010 at 12:37 pm

  • Archives z

Recent Posts

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

5 Things Everyone Should Do Before a First Interview

After spending hours drafting your… Read More »
June 24, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014

Why Dana joined Lending Club, or, four things you should look for when you make your next move

Read More »
May 14, 2014

LendIt 2014

LendIt 2014 opened with a bang on Sunday night… Read More »
May 5, 2014