Mar 17, 2009

Our Money Management for kids

I really want my kids to learn money management.

Not just, how to pay tithing, and save the rest - but real "investment, saving, spending" practices.
I have NO idea where I found this idea (I have tried to find the website but cannot), but I tweaked it to serve our family. I thought I would share this idea in case anyone else can benefit from it.
I love it - it works and my Calvin LOVES it. Josh is still a bit young to start, but very soon he will begin.......

We want our children to be self-reliant
Owe no man any thing, but to love one another
Romans 13:8
(hopefully we can teach our kids to stay out of debt)

Here is what we did:
  1. We determined the amount of money Calvin would put towards tithing, savings (wealth), and fun. Some could add "education" to that.

  2. We made some cute and colorful envelope labels for Calvin.

  3. We bought a pencil pouch for extra tithing slips and envelopes (this makes it so much easier to access when we need them).

  4. We have a bakset to hold everything that we need to pay allowance.
Here is what we do:

  1. Each week our children get $2 allowance (they are thrilled with the amount).
  2. We pay them with a dollar bill and a mixture of coins (most often it is 2 quarters and 5 dimes).
  3. I pull out our "allowance basket" (see photo below)
  4. We pay tithing first (10% - math skills!!)
  5. Calvin then figures out how much money he puts into his "Wealth" envelope (30%)
  6. He then makes sure he has the right amount for his "Fun" envelope (60%)
  7. We put the right money into the right envelope.
  8. If we are near Sunday, we will fill out the tithing slip (which is already in our "money basket") and we are ready for church. The boys are learning to fill out the tithing forms by themselves. It is so fun to see them donate to other items on that form. I always ask if there is anything else they would like to donate to and let them decide.
  9. Calvin has set the "Wealth" envelope limit at $10. When he reaches $10 he wants to take it all to the bank. (Uncle Matt will need to teach him a lesson about earning interest. Interest is a great servant but a terrible master).
  10. Josh just puts all but 10% into his wallet. He is a good saver. Calvin . . . not so much. Calvin's "fun" envelope is not as bulky as it could be. lol.
  11. We put the "money basket" away until the boys need their envelopes to go shopping . . . or until next allowance day.

I think I will start incoporating this idea this week:
· Saturday job auctions. Give your children the chance to earn extra cash by doing jobs beyond their expected chores. Award jobs to the lowest bidder as part of a "Saturday Job Auction."

1 comment:

The BirdHouse said...

We are starting this kind of thing for McG too. His first paycheck was suppposed to be Sat but were a little "cash shy" so poor thing still hasn't got paid! haha