The trouble with a bank account is that the interest is so paltry. An idea I got from The First National Bank of Dad is to act as a bank for your kids and to pay them an exorbitant interest rate (like 5% monthly). Then they have a real incentive to save and can experience the fun of watching money meaningfully grow. You can reduce the interest rate as they get older and start to accumulate adult-like amounts of money.
Thanks! Yes, both kids get allowances. We set something up similar to this:
Even the 4yo gets it. He gets excited when he gets his interest. The other day at Target he picked up some BS toy and I said “you’ll have to spend your savings to buy that” and he put it back down.
(It’s not always that easy)