Children and saving money
Getting children to manage money is not easy and here is a suggestion that was observed in a Sagicor publication. It was used successfully by one of our parents: All money worked for and earned (even for jobs around the home) can be divided into ways that teach your child good management habits. Here are some suggestions.
- 30% free to spend – money they can use for their own purchases as they wish (Parents have no input and cannot influence them here)
- 30% medium term savings – for the things that they have their sights set on, (and their parents have agreed to) eg. a new jeans, a Gameboy game etc.)
- 30% long term savings – for their long term future plans (University education, major purchases etc.)
- 10% charity – to get them into the habit of giving back to the society
They can use 4 jars, or make a box with 4 compartments, or simply put the money in to 4 envelopes. Let them decide where they want to put the long term savings, and which charity they want to give to. These habits can be useful in helping them to manage their money when they start working and earning their own.