When it comes to money management having a system helps. Last month, I attended a financial event where Mario Gage (the first Money Smart Week Kid) shared the “three-jar system” his parents taught him.
Here’s how it works. For every dollar he receives, it’s divided into three categories:
- 10% for church
- 30% savings
- 60% for spending
So he’s only spending 60% of his income. This system taught Mario the valuable lesson of living below your means at a young age.
Mario also learned the importance of saving (pay yourself first) and giving.
The “three-jar system” is a great way to teach your children about money. In fact, it teaches lessons we can all learn from.
Just imagine how different your life may have been if you socked away 30% of every dollar you had ever been given since childhood. That would be some serious $$$$. Huh?
The good news is that it’s never too late to start saving and investing for your future. Make it a priority and set up a system that works for you.
Do you have any other ideas to teach kids the value of a dollar?