Hubby and I believe being wise with one’s finances begins at an early age.
If a child puts into practice the principles taught, his/her financial foundation in the future will be strong!
Every Saturday Bunny girl. my 6 year old, is given 6 dollars.{Now you may say that’s way too much, each week, for a 6 year old. But right now we’re focusing on the principles of saving, giving and spending, so bear with me on this!}
The 6 dollars Bunny girl receives each week is NEVER given to her as compensation for doing chores around the house. The chores she does is her way of helping out in our family. This is what we, as parents, like to call her allowance learning funds.
Her 6 dollars, upon receipt, is divided into 2 piggy banks and a purse. {The 3 Cups model!}…
- 2$ goes into her Purse as her tithe/offertory to put into the Church Collection Bag on Sunday.
- Another 2$ is put into Piggy Bank 1.
Piggy Bank 1 holds her Big Savings money. (This is the money she compulsorily keeps aside for whenever she’d like to get something big like a bicycle. When the Piggy Bank fills up, she counts the money and puts it in a plastic seal-tight bag. This is then taken to the Bank and put into an account we call her “Big Savings Account”. This is money that we tell her cannot be dipped into unless absolutely necessary.)
- The last 2$ is put into Piggy Bank 2.
Piggy Bank 2 holds her Small Savings money. (When the Piggy Bank fills up, she counts the money and gets to buy what she wants within the budget she has. Even though it is tempting at times to allow her to over-spend to get that book she really loves, we hold back as this teaches her the importance of learning to spend within what is available.)
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Have you begun teaching your child about money?
**EBMR Disclaimer: This post has been inspired by Genworth Financial and yes, the heart of the post is all me!**
About Marina
Twitter: happymomsusan
says:
This is SO important. I don’t think this can be overemphasized. Thanks.
susan recently posted..Five Minute Friday – Focus
It’s great that you start teaching financial responsibility at such a young age!
Nikki recently posted..Have a Fool-Proof Fiesta with Beverly Hills Chihuahuas!
I think these are great ideas, we are even starting this with my 4 year old!
Melissa recently posted..Shop with the Walgreens Mobile App and Save with the #BalanceRewards Program #Cbias
I really love your 3 cups idea with the 2 piggy banks and purse! It’s never too early to teach kids to save and budget!
Jenn recently posted..My Yahoo! Women Who Shine Nomination #WomenWhoShine
Twitter: thenewclassy
says:
It is great that you are teaching your child about money early. As a child, I was never given and allowance and, admittedly, I had a hard time with money for a few years after I left home. I have tried to do a little differently with my daughter.
Dawn
http://www.cheapisthenewclassy.com
Dawn recently posted..Nutrisystem Black Beans and Rice Are Delish Plus Week 2 Results! #nsnation #spon
Definitely a fantastic lesson to teach at a young age.
What great tips at such an early age… I remember visiting my cousin, a couple years back… he was in his 30′s and had a HUGE shelf in his room with about 10 clear bottles, labeled “Car Savings” “spending money” “Savings for the future” “charity” etc… and in each bottle were coins and bills. I loved the idea and never thought of teaching my little ones the same concept!!!
You are so right, starting early is sooooo important. Good for you for creating a plan early on to start the training.
Jen recently posted..Outback Steakhouse – Free Bloomin Onion September 17, 2012
Twitter: Grandma_Juice
says:
We started doing something a bit similar. Our 6 year old doesn’t get $6 a week (can I come live with you?) But he does get an allowance and is learning to save up for what he wants using $$ now than simply ‘earning’ through good behavior.
Life lessons!!
Ronni Keller recently posted..Having Multiple Blogs: And Then, She Snapped
Twitter: twitter (creditdonkey)
says:
Smart way to teach a kid to save smart! I salute you on this technique- definitely, this is one great lesson she will carry on as she grows old. Have to copy this one for my grandchildren later. Thanks and keep it up.
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