I loved all of the studies and financial data was broken down into small digestible bites. Often when I read books about finances, even if they are books about teaching the younger generation, some of the examples can be really heavy. The author speaks in a very conversational tone that makes the book move quickly. I learned a lot and for the things we were already doing in our family, I found evidence to back up why those things are a good idea. One of my favorite ideas that Beth Kobliner shares is the idea that kids should be expected to do things, just because they are part of the family, parents can choose to compensate extra chores or jobs but some things need to be a regular expectation. I LOVE that she is teaching kids to manage money while teaching them how to function as a family unit.
One of the ideas the author suggest for younger children is separated piggy banks. Every time your child earns some money, (and she advocates giving your children physical money when they are young), you have them separate it into three different jars or piggy banks. This helps them learn from a young age to save, serve others and of course lets them have some of their own spending money. To “piggy back” on this idea, I made each of my girls a set of Piggy Banks.
For this project you will need:
- three piggy banks or jars (I found mine at the dollar store!)
- transfer tape
- a way to cut the vinyl
My local dollar store always seems to have a selection of piggy banks, so it is a great place to grab them. Jars or any other containers will work too. Kobliner suggest finding opaque containers to make dipping into the saving or serving jar a little less tempting.
Find a bright color of vinyl to stand out on each jar and cut them out, I used my Cricut to cut three labels, spending, serving and saving. Using transfer tape, transfer the vinyl from the backing to the the piggy banks.
After you have your piggy banks ready to go, come up with something that works for your family for us, we use the 10% rule. Every time one of my daughters earns some money, 10% automatically goes into saving and another 10% automatically goes into serving. If she wants to add more to her saving jar, I will match anything she does on top of the 10%. This gives her an incentive to save more of her money without feeling like we are forcing her to save.
We have loved the new ideas for allowance, chores and money in our house. I feel like our house is always happier when everyone knows what the expectations of them are and this book has truly helped us find what works for us at the ages our kids are right now and when they get a little older we will move on to the next phase.
What are you doing to help teach your kids money management?