How To Teach Your 5 year Old About Money.

Media / Blog

How To Teach Your 5 year Old About Money.

Prev

Can Your Student Loans Be Forgiven?

June 01, 2014

We do a poor job of teaching our kids about money in this country. In order to get my kid started in the right direction I set up the following system. I threw out my son’s piggy bank and gave him three jars. I labeled one, money to spend, one money to save, and one money to give. I told him any time he got any money he had to split it into thirds. Then I explained that he could use the spend jar money on anything he wanted. I would never question what he wanted to spend that money on. The money to save jar could never be touched. And the money to give jar was not only for church offerings but when he got invited to friends birthday parties he had to buy the birthday presents with his money to give jar. (I was tired of spending my money on his friend’s presents). I was amazing to see how after buying birthday presents at Wal-mart for his friends a couple of times, he started becoming more conscience about how much the present cost.

The other lesson that he learned was that when he ran out of his money to spend, he could not buy that next toy he wanted. One day he came to me and said, “Dad I really want this Slylander figure (video game toy) and my spend jar is empty.” I looked at him and said “Son it sounds like you need a job.” So he went to my wife and said “Mom, dad says I need a job.” My wife told him to go tell the ladies next door that he was looking for a job. Our nice neighbors offered to pay him 1.50 a week to take their trash down to the street for pick up.

There are plenty of ways to teach your child about money, but my 3 Money Jars has now, two years later, ingrained the habit of saving. The jars have open countless conversations about adding, dividing, work ethic, planning out purchases and shopping for value.

And let’s not forget Your Smart Money Move is that it saves you from spending your money kid’s birthday presents.

Written by: Van Pappas CFP®
Vice President and Private CFO™, oXYGen Financial, Inc.
Request a FREE consultation: www.oxygenfinancial.net

Next

Five Things To Buy At Five Below

About the author

a man wearing a suit and tie smiling and looking at the camera

Van Pappas

Vice President, Private CFO®

Van Pappas, CFP® - Van is a native of Atlanta. He holds his undergraduate degree in Finance with an emphasis in Real Estate. As a planner for 15 years, he earned his CFP designation from Kaplan University. He is currently the Chairman and founder of the Chamblee Chamber of Commerce and sits on the Downtown Development Authority for the City of Chamblee. In 2012, he noticed the value of helping the X-Y Generations and decided to merge his practice with oXYGen Financial.

Background and qualification information is available at FINRA's BrokerCheck website.

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.