Teaching Kids How To Use Money Wisely

I've been mulling over money matters for a while and wondering how I can teach my children the true value of it. It came to my attention that my daughter, who is nearly 4, needed to begin to understand the role of money. Now I know 4 is young; she can't read or write, she can't squeeze toothpaste out of the tube, she can't peel an orange - but she can put my passcode in to my mobile and find the Youtube app, she can workout how to get to the top of the 'treats' cupboard in the kitchen (this involves chairs, climbing and some other dangerous manoeuvring) and she most certainly knows how to bargain with me at the checkout for that absolutely, must-needed, can't-live-without chocolate bar. Hmmm.
Owning my own shop means that my daughter is in and around the checkout a lot and her insatiable desire for new toys, new play things, new treats was becoming exasperating. Constantly saying NO was becoming emotionally draining and negative, saying YES felt like we were being weak and giving in. So we decided that she was indeed ready for pocket money. I always thought that i'd start to dish out the pennies when the kids were about 13 - only ten years different then!
For me, it is so important to teach my kids the meaning of money and the meaning of responsibility. Not everything deserves payment, some thing we just have to do; like it or not. But when we do earn our money, we still have the responsibility to use it well. Now this may be a little heavy for a nearly 4 year old, but she'll get there.
Using the power of Pinterest, we settled on this lovely idea of using 3 jars to save, spend and give. For us at the moment, she has to put one coin in each jar every time she earns some pocket money. As our new system grows and she gets older she will begin to understand the different coin values, how to divide them between the three jars and so forth. But, for now she is happy to see her (copper) coins mount up. In the future i'd like the traditional 10% Giving, 60% Savings, 30% Spending to work but this is a start for now. She will be able to decide who she'd like to donate her 'Giving' jar too, learn how to save and have the freedom to spend if she wishes.
The rules typically are although you can take Spending money and put it either in Giving or Saving, you cannot move Saving or Giving money. Find what works best for your family. Some times, the traditional 10% Giving, 60% Savings, 30% Spending works. Other times, during a certain season, more money must be used for Savings rather than Spending.

So next time we are at the checkout and she is absolutely-100%-hell-bent on demanding this must-have item - it's her turn to pay (kinda).
Note* We have only decided on a few light chores such as putting the shoes on the shoe rack, putting the toys away, and making her bed.
May 15, 2019 — admin