A personal savings bank, for use by children, which is attachable to a computer as a peripheral device and simulates interactions with a teller as paper money and coins are deposited into and withdrawn from the device is described. The invention includes a money storage peripheral, a communications system, and software executed by a computer adjacent to and separate from the money storage device. The money storage peripheral is attached to the computer via a wire or wireless link. The software program controls a teller displayed on the computer which interacts with a child in response to cues from the money storage peripheral. The teller could include a real person or an animated character who speaks, commands, and responds to a child during use of the money storage peripheral. In some embodiments, the virtual teller projects the future value of an account, develops a saving plan, displays money-related references, and/or enables a child to play a game after deposit of a coin or paper money into the money storage peripheral.