Our kids are money smart!
Posted by John | Filed under Uncategorized
I have tried and failed at introducing allowance to my kids (11 and 5) in the past. Too much, too little, too infrequent, too many strings…they thought my purse was bottomless and I was “mean” if I said no to their gimmies.
I started my kids with the magic jars last month. $1 per year of age and they have 2 jars each – marked spending and saving. I got them to decide their minimum saving contribution and explained that it was their money to spend as they wish but they can’t spend more than they have – no loans!
Then I gave my 11 year old a third jar marked “Clothes” and a notebook. She will now have full control over how her clothing budget is spent (this has always been our biggest battle). I showed her my monthly household budget and we found my expense line for kids clothes. We used a calculator and worked out how much of the money should go out of my budget and into her jar each week. We then started a running balance in her notebook and I showed her how to keep track of the cashflow.
This little excerise brought lots and lots and lots of questions! Its great seeing them take such a big interest in managing their money and wants and needs. My 11 year old has become a saver over night. She has had so much fun working out how much and how fast she can make her savings grow. My 5 year old loves counting his loonies and telling me how much is in each jar and what he’s going to buy. They both love seeing the cash visible in the glass jars.
I love that my kids know more now than I did when graduating from college! Thank you for giving me this opportunity with my kids!