Kid's Money Jars

 

As you read in my earlier post we have started using Dave Ramsey's total money makeover in our house to get rid of our debt and find financial freedom. My hubby and I both agreed that we want to teach our children that they never have to go into debt, so we are taking baby steps to teach our oldest that early on. She is now responsible to pay for something if she wants it (i.e. toy, movie, candy, etc.) We of course we will take care of clothing but if there is an extra item she wants, she will pay for that out of her money....

 

 

Let me back up a bit...

 

I saved spaghetti jars in order for us to create a:

 

Save Jar:

this jar is her savings, she cannot touch it...this will continue to grow and she can use it one day to help pay for a home or a car...That may sound crazy since she is five but she already has $15 saved...imagine where she will be in a few years.

 

Spend Jar:

Her spend jar is well....for spending.

 

Give Jar:

This is the most important jar in my eyes, because what we have comes from God and we are tithing family so we give back to God what he asks and we will teach her to do the same. Giving 10% of what she has....This can be for church or she can use it to make a charitable donation but this is for giving.

 

So where does her money come from?

 

We cleaned out her piggy bank to find that she had over $60! I was floored, she had been finding change around the house and putting it in her piggy bank! We let her decide how she wanted to divide that money between the three jars, being very careful to explain what each jar was for...So needless to say she had a good beginning. We give her $10 every two weeks or $5 a week, we then sit down with her and discuss what she wants to put in each jar and why...Just in a short amount of time she has learned if there is a bigger item she wants then she will have to save her spending money. When we head out to the store I often hear, "Oh no mommy I forgot my spending money!"

 

This was an idea that was shared with us by some amazing friends who have been through what we are going through and are now on the other end of where they began. They shared that their oldest now purchases her own clothes and has more savings than they ever imagined. When we send our kids out as adults we want them to make smart financial choices, we want them to know how to invest their money, and DON'T GO INTO DEBT! I don't want my children to ever know the burden of financial bondage! Save, spend, give, and  DON'T GO INTO DEBT! A great lesson to teach your children no matter their age!