Money Jars: The Kid-Proof System for Saving and Spending Money: Part II

 

Welcome to Part II of our Money Management for Kids Series. Last time we discussed the 1st Jar, the Living Jar, and how it’s used for Living Expenses. Remember to have your child make a list of what he or she considers necessities and make an agreement that the money to purchase these items will come from the Living Jar.

 

Now it’s time to dive right in to the Jar #2.

 

The Savings Jar

The money allocated to the Savings Jar actually has two functions.

1.   Emergency Money

AND

2.   Long-Term Savings

This Jar is Amazing because it teaches your kids so many lessons! Because they must keep money on-hand for “emergencies,” you are teaching them to be prepared. We’re not talking have the kids pony up their cash when the pipes burst in the house.  However, when there is an emergency in their world 🙂

 

 

  • A wheel brakes on their skates and they have a hockey game the next day
  • Their gaming system malfunctions and it needs repairs
  • They received a bike for a gift. Now they need to buy all of the safety gear (helmet, knee pads and shoulder pads before they can ride it)

Do You Remember Dreaming of What Could Be?

As a child you drew pictures from your imagination and you told elaborate stories. Maybe you had a dream car that you always wanted. Or a dream place where you always wanted to travel.

 

When your child utilizes the Long-Term Savings function of the jar, they are learning how to Dream Build. More importantly, he or she is learning that any dream is possible. He can have anything he wants—with the right plan in place.  She can buy that new bike; go on that special trip and even save up for her first car.

 

Here’s another lesson that your child is secretly learning—delayed gratification. We all know how important patience is when it comes to being good money manager. He or she will learn how to stop thinking in the “Right Now” and start planning for the Future. Goal-Setting is another bonus lesson. Your child is learning to set BIG GOALS and putting a financial plan in place to achieve them.

 

10% of your child’s money should be set aside for the Savings Jar. Then split that money in half—5% for emergencies and 5% for long-term savings.

 

This jar comes with a fun exercise as well. Have your children make a list of emergencies they should prepare for as well as a list of larger goals they want to achieve.

 

Thank You for Reading Part II of the Money Jar Series. Stayed Tuned for Part III. Please join the conversation and let me know your thoughts below. Feel free to comment, share, and ask questions.

 

To You and Your Kids’ Wealth,

 

Melanie Jane

 

Related Articles:

Money Jars: The Kid-Proof System for Spending and Saving Money: Part I

Money Jars: The Kid-Proof System for Saving and Spending Money: Part III

Money Jars: The Kid-Proof System for Saving and Spending Money: Part IV

Money Jars: The Kid-Proof System for Saving and Spending Money: Part V

Money Jars: The Kid-Proof System for Saving and Spending Money: Part VI

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