Have you ever heard of Gail Vaz-Oxlade? I LOVE her! If you have debt then you need to check her out.....even if you don't have debt you should check her out. She is such a wonderful person (Not that I have ever met her, but I think she is pretty wonderful). I have watched many of her shows, Til Debt Do Us Part, Princess, and they are all great! I read her blog and there is all sorts of great stuff to read and learn!
I want my kids to have a good knowledge of money management. My husband and I are pretty good with our money, the only debt we have is our Mortgage. However that wasn't always the case. When I was younger I had lots of debt, credit cards, loans, etc. and I was exhausted and poor while trying to pay it all off. I don't want my kids to start off on the wrong foot.
Gail has a Jar system that she talks about often. I figured why not teach our kids this system. I may not have done this entirely the right way, but I think I have done what will work best for our kids. You could always just find supplies around your house that you have instead of buying stuff. I got the vinyl from Wal-mart and I used the Cricut cutting system to cut out all the letters I would need. I got the Jars from my local Dollar Store.
I decided I would give each of my kids 3 Jars - Save, Spend and Give! I got two different coloured Jar Lids so that the girls could easily see which one was theirs. E's favourite colour is Purple and Teal goes with the colour in P's room.
I cut out all the letters and started putting them on.
Here is what they looked once I got all the letters on each of them.
Then I gave the girls their allowance. They get 1 dollar a week for every year of age. So E gets $6 a week and P gets $3 a week. We have decided to give them their allowance by-weekly since that is when we get paid, so they get $12 and $6 respectively. I explained that they will get an allowance every two weeks and that then we need to decide what they will do with their money.
E can comprehend this a little bit since she is 6, however P is only 3 and just wanted to move all the money from Jar to Jar......lol. I explained what Save, Spend and Give meant. They were both really eager to save and give their money. I told them that they had to put 10% of their money into Save right away and then they could decide where to put the rest. Most of their money went into save (I think E wants to save for a car.....only 10 years to go until she can drive). They both put a fair amount into Give and just a little into Spend. They both plan on using their spend money the next time the Ice Cream truck comes by as I refuse to purchase anything from the Ice Cream man since it is so darn expensive.....lol. I think once they buy something they will realize that they could just get one from our freezer for free and saved their money for something else.
I think as time goes on and the continue to get allowance they will start to understand the process of what we are doing. Until then they really enjoyed helping to make the jars and put in their money!
Most likely Gail will never read my little old blog but all I can really say is THANK YOU GAIL!
Oh yeah.....Thanks to you too! I really appreciate you reading my blog!!!