Money Management for Little Ones

Boo's turning four at the end of the summer and money is something he's been learning about lately. I feel it's so much more difficult to teach about money in our culture because it comes in so many forms and isn't as tangible as it was when we were growing up.

We had a couple come speak at MOPS last semester about teaching children to manage money. They offered several great tips, one of which we've already implemented and I wanted to share: money jars.

We made Boo three jars to divide up his week "allowance" into categories: save, spend, give. Now, I say "allowance" loosely. This isn't money he earns from anything. {Chores he does are because he's part of the family and that's what we do....we all help out. Basic chores are not linked to rewards or money in our house.} The sole purpose of giving him money every week is for him to learn how to manage it appropriately. We decided on three dollars per week. We figured a dollar bill to put in each jar was simple, easy to count, and significant enough to make a difference. You could certainly do more or less.

When we made the jars, we decided they would replace his piggy bank. All of the money he had in there {from past birthdays, etc.} would go into a savings account at the bank. We had fun counting up all of the money including every last penny and putting it in an envelope to take to the bank. I was hoping for a little more fanfare when we went to open is Youth Savers account. I know some banks give the kids little piggy banks or stickers. Not ours. But that didn't put a damper on his excitement. He was proud to hand over his envelope nonetheless. Now we have a place to put the money he accumulates in his "Save" jar. At the end of the month, we take the $4 from his "Save" jar and deposit it in the bank. This way he has some concept of what it means to save money in the bank. At the end of the year we'll look at the bank statement to see how much he has contributed.

As for the "Spend" jar, he hasn't thought of or mentioned anything he wants to use it for yet. I think it'll be a good lesson in what things cost and learning how to save up for something that he's interested in.

The "Give" jar is great! We've told him all of the different ways we can give money and he's excited about choosing something. I think every three months we'll let him pick where he wants to give. That way he's accumulated a big more in the jar to give towards his choice. We've used scripture to explain why we give and tithe and he really seems to get that and be excited about it.

About the jars...we just used mason jars we already had. I painted a little chalkboard paint on the front and wrote the labels in chalk. I actually recommend using paint pen or something more permanent to write the labels with as they've been handled quite a bit and I've had to rewrite the words several times. To put slots in the top, the Good Doctor used a chisel and rubber mallet.Worked like a charm and is the perfect size for slipping in folded dollar bills.

What ways do you teach money management to your little ones? I'd love more ideas!