Money Jars: The Kid-Proof System for Saving and Spending Money: Part 6

You made it! We are finally at the close of our 6-Part Money Management System for Kids. Thank You for keeping up with this Series and I hope you’ve enjoyed reading.

Why I Saved The Best Jar For Last

The Money Jar we are about to discuss is extremely important. It will literally set the foundation for your kid’s financial future. This jar is why I got into teaching kids about money in the first place. It is EPIC, monumental, the pillar of your kid’s finances. It is hands down THE MOST Important Jar. This is why I saved it for last…..I wanted to end this series with a bang! 🙂

The True Money Jar

Let’s talk about the Financial Freedom Jar, also known as the FFA. I referred to it as the true money jar because it’s the only jar that is supposed to “Make Money” for your children. When they put money into the FFA, they are to NEVER, and I mean NEVER, touch it, unless they are going to invest the money. And of course that investment should give them a return in interest, thus making them more money.

 

The rules are pretty simple with the FFA. Money goes in and only comes out to invest in a vehicle that makes more money. This is so critical to your kid’s financial freedom. The only way they’ll ever achieve financial freedom is to get their money working for them instead of the other way around. The FFA is designed to accomplish this goal.

Temptations

Along the Road to financial freedom there may be several temptations. Please warn your children that they may have the urge to use the money in the FFA for things they want at that moment in time. It’s important to instill in them the concept of delayed gratification. Anything of real value is going to take time and this is no exception. Your kids need to put at least 10% of all their earnings into their Financial Freedom Jar and let it sit until the time comes to make an investment with it.

 

Oh by the way, this is the jar they allocate to FIRST! One of the fundamental principles of the wealthy is they always pay themselves first. This is the way your kids can adopt this principle, by paying themselves (the FFA Jar) first. Always. Always. Always.

 

Well that concludes our series. This is the structure to teach your kids money management skills. If you teach this system to them early, they will not only be financially responsible, but they will thrive in this area. You can breathe easy knowing that your child is prepared for the real world.

 

To You and Your Kids Wealth,

 

Melanie Jane

Related Articles:

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

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

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

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