As a parent, you want your child to succeed and one of the skills to do that is money management. When you’re an adult, there are a lot of ways you can manage your money whether it’s through spreadsheets, keeping accurate records, savings and checking accounts and so on. But what is the best way to teach young children this valuable skill?
A popular technique is showing your children the three jar system as soon as they are old enough to do chores without needing much supervision. Once you have the three jars, label them: Spend, Save, and Give.
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Spend: Let your child decide what they want to spend their money on whether it’s a small toy, candy, etc. But if your child wants something and doesn’t have enough, you can set up the save jar.
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Save: For young children, the Save Jar is great to help them save for a goal they can reach relatively quickly. Your children will take great care of their purchases and have a strong sense of pride about it because they’ll have earned it themselves.
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Give: You want to teach generosity at a young age, and this can be as simple as encouraging your child to give some money to a nonprofit such as a church or they can set money aside for a charity that interests them. This will instill a sense of goodwill and purpose that will motivate them to contribute a portion of their earnings to the Give Jar.
Ditch the piggy banks and teach your kids this simple but effective money management system. This is a great first step to help set your child up to succeed later in life and to teach them a lifelong skill. Take it a step further and open a Westport Federal Credit Union youth savings account today here.
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