As kiddos go back to school then it is time to begin thinking about learning, football, and homework. May I suggest a fun activity to do at home with your kids to teach them not just about money but how to utilize it wisely: BUDGET JARS!
They are simple and inexpensive to create; you can use jars, boxes, just about anything which the child can watch the amount grow in! You need 3 – one for giving, one for saving, one for spending. First you pay the child for household chores…like you get paid for doing your job; you can also use money received as gifts on birthdays or Christmas. Be age appropriate when setting expectations and the payrate. For teenagers, they can use their job, chores, or both. Second you place 10% of the “paycheck” into Savings, this teaches an important lesson to pay yourself first. Then you place 10% in giving and the remainder in the spending jar. Children and teens can spend the money on whatever they want, but when it is gone they cannot ask for any from you or “steal” from the other jars. The saving jar can be used to open a savings bank account and save-up for something special, college, or the first car. Discuss it with your child and let them choose! If you begin about 4 years old then you have plenty of time to set aside muchos dineros..possibly even 20-30% at younger ages….with Mom & Dad adding to it also. The lessons learned could be the driving force with which your child learns to save, spend, and share the money that they’ve been given!
If you would like more kid-friendly tips or Family Financial Coaching contact us today for a free consultation!