I feel fortunate that my parents taught me how to manage my money. In fact my husband argues I may be a little too thrifty at times because I think so much about whether I really need to spend money.
My parents taught me to build a budget first. We always started by putting money into savings and paying the necessary bills. Then we’d allocate the rest of the money toward things like food, haircuts, clothing and entertainment. I’d put money into envelopes and once I spent what I had allotted that was it. So I could spend it all in the first week or make sure it lasted me through the month.
I’m amazed how little most adults know about managing their money. Most people see something they want and they buy it, whether they have the money or not.
Here’s a simple program I think could help even young children learn how to better manage their money and it makes it visual and fun. It’s a program called “Share, Save, Spend” that I learned about while working in Minnesota.
Financial expert, Nathan Dungan came up with the concept.
The idea behind it is that when you get money you should always pay yourself first, share some of it with those who are less fortunate, and buy items you may need or want.
It’s almost like creating a bank with three different compartments. You can make your own using a shoebox or if you’re not terribly creative there are several companies out there that sell products you can buy. Below you’ll find a few of them:
I’m thankful I had those lessons at an early age, now you can make sure your children do as well.