When D3 started Kindergarten, we decided to start an allowance. He does have responsibilities and chores that he has to take care of, but we have decided to not tie those into his allowance. His responsibilities are expected and so we don’t reward him monetarily for those, just with encouraging words.
We made 3 jars for him. My Money for GOD, My Money to SAVE, and My Money to SPEND. Each week he gets his allowance and divides it between the jars. He puts 15% (just because it divides out more evenly) in the Money for God and Money to Save jars and the rest goes into Spend. The first jar that gets money each week is the Money for God jar as a way of showing that God comes first in our lives. Each Sunday, D3 gets the money from his Money for God jar and takes it to church to put in the offering plate. He has really taken great pride in this.
Surprisingly enough, D3 has not spent all of his Spend money each week. There have been $.25 pieces of gum and $1 toys from the Dollar Store, but I’ve been impressed that he tries to save up for his toy of choice right now- Star Wars action figures. We try not to give our opinion on how he should spend this money. We want him to see how far money goes and how long it takes to get to a certain dollar amount. So far he hasn’t blown his money, but doing so is also a good lesson in how money works.
I’ve also read recently that some people put a few pennies in their kid’s savings every now and again to show them that you can earn interest in your savings accounts. I really like this idea.
I love how the jar system is a great visual for D3 to learn about money. We really want to raise our kids with an understanding of how money works and how important it is to manage it well. Hopefully, this jar system is a good start.
It works for me.
For more Works for Me Wednesday go to Rocks in my Dryer.