The Three Jars Method To Teach Your Child The Value Of Money

You need to teach your children the value of money at a young age. Some may take it for granted, but this leads them to spend without a second thought. Teaching them the value of money allows them to be smart with their money and grow up into independent adults who can make smart money-related decisions. That being said, teaching a child the value of money is much easier said than done. They need something relatable to understand how to handle money. 

Today, we're going to teach you the "three money jar" concept to help them carry out one of the most important aspects of handling money: budgeting.

The Three Money Jars

You'll need three jars for this exercise: one for saving, one for spending, and one for giving. The three jars, when put together, create a budget that will allow the child to track their spending.

1. The Saving Jar

The first of three jars is for saving. The goal is to start young, so this jar should be introduced to the child as soon as they start accumulating money. The best way to teach money saving is to show them how much money they can have if they save some of their money.

Have the child save their allowance, though it's not necessary to have them earn an allowance. If they have an interest in a specific toy, encourage them to save enough money to buy the toy.

If you are a parent, you can also add some of your money to their savings if you would like. If you're saving for college, consider adding some of the money that you would use for college to the child's savings.

2. The Spending Jar

The second of three jars are for spending. The point of this jar is to choose the amount of money they want to spend each week and use the jar to track the money. This can be done by giving the child a certain amount of money each week and teaching them how to manage the money. 

If you want to help them understand how much to spend, then you can teach them some simple math to know how much to save and how much to spend. For instance, you can tell them to save 20% of the money they get (20 cents for each dollar they have), and the other 80% can be for the spending jar or giving jar.

3. The Giving Jar

The third of three jars is for giving. This jar will be added when there is extra money. This jar should be used to help those who are less fortunate than your child. They can donate the money to others or to a charity. This will teach them to understand that there are those who are less fortunate than them, and also teach them that by helping the community around them, the world can be a better place!

Conclusion

The three money jars will help your child see how they can manage money. It gives them a better understanding of money because they are able to see how money can grow. This method allows them to see the importance of budgeting and saving. It also opens their eyes to those who are less fortunate and how they can help.

That said, if you do want to apply the three money jar strategy to yourself or for anyone else, such as students, feel free to do so! It is a good way to learn how to save money, and it is also incredibly easy to do!

Kiddie Kredit is a mobile app that is designed to help children learn how to value money through a credit system by doing chores. If you are looking for the best chore app to help your children learn the value of money, use our app today!