I think teaching kids money management is one of the most important tasks we parents have. Everyone has a different opinion on the “right” way to teach our children how to handle money, so I’m going to share what has worked for us. The system we are using to teach our kids money management is Financial Peace Junior, from Dave Ramsey.
Shane and I purchased the kit at a conference several years ago, and we recently sat down with our girls and explained to them what we were doing. Both Abby Grace and Reese were seriously excited about it.
The girls have an insane amount of money saved from birthdays, Christmases, and other holidays, mainly because I think they have enough “stuff” and don’t let them spend their money on more “stuff”.
We set right to it, and split up the girls’ money into three envelopes: Spend, Save, and Give (one of each per child). We agreed to save 15 percent, give 15 percent, and spend 70 percent. I like the idea of saving and giving more than the recommended 10 percent; it’s the way Shane and I do it, so it makes sense to continue this with the kids. I think saving and giving anywhere between 10 and 20 percent is a good number. All of the girls were so excited about the amount of “give” money they had, that they put it in a tithe envelope immediately.
Next, the girls made a small list of “big ticket” items that they might want to purchase with their “spend” money. I believe an iPad made Abby Grace’s list! A very lofty, but {eventually} doable goal.
The girls have chore charts on the refrigerator, and rotate doing chores each week. Each chore varies in amount, and are tailored to their ages. Last week, Abby Grace’s paid chores included sweeping and mopping the kitchen, while Reese cleaned the bathroom (my kids are weird; they love cleaning the bathroom!). They will not be paid for making their beds or cleaning their room. I know not everyone agrees that chores should be paid, and we don’t pay them for every chore, but I think it is a good opportunity to learn how to earn money and use that earned money wisely. I even pay them (sometimes) to “watch” Cam for me. These paid opportunities give the girls a chance to earn money by working together, and gives me a few minutes of quiet work time. They don’t get paid every time I ask them to play with Cam so I can work; some things we do for each other simply because we are a family.
This method has served us well. It has gotten our girls excited about earning money, as well as, saving and giving it. Spend, save, give, and earn have become more than words. While going through their room this week, all of the girls “found” money. They took great delight in splitting the found money into the different envelopes. The envelope that received the most money? Give. Talk about doing this momma’s heart good! And not only has this opened the door to teaching money management, it has also brought to light the needs of others. More than once, they have asked about giving to those in need, like our Compassion children. Who knew teaching money management skills would open up so many wonderful conversations?!
Teaching kids money management with Financial Peace Junior is what works for us!
What is your method for teaching kids money management?
This is not a sponsored post; we really use this and love it!
Fantastic review, thank you!