When my daughter started Kindergarten about 5 years ago, I had seen this idea as a product advertisement in the back of a Parents’ Magazine issue. It was for a piggy bank that was divided into 3 parts – Save, Spend, and Donate. This advertisement inspired me to create my own money management system for my daughter (and then for my son when he started Kindergarten as well.) Both of my kids still use this system today!
I thought this product showed a simple way to teach children how to manage their money. Instead of ordering the product, I used items I had in the house to duplicate the same money management idea.
What you will need: Three containers (preferable with a removable cover) and permanent marker
Instructions: With a permanent marker, label the 1st container SAVE, 2nd container SPEND, and 3rd container DONATE.
How it works: Every time children receive money (gifts, chores, allowance, etc.), they divide the money into three equal parts. Then, they add the money to each of the containers SAVE, SPEND, DONATE.
- SAVE: Once this container has enough money (usually $25), I bring my children to the bank and have them deposit the money into their own bank account. I informed my kids that this money is used to save for college in the future.
- SPEND: This container is the hardest one to keep full! My kids always have different things they would like to buy toys, books, games, electronics, stuffed animals, etc. They decide how much the item is and wait until their SPEND container has enough money to go out and buy the item.
- DONATE: We always encourage our kids to help others in need. Once this container has enough money, we research and decide which organization they would like to DONATE their money to. Now that they are in elementary school, there are many donation opportunities offered right at their school (Hat Day for a Cause, Walkathon, Hoops for Hearts, Pennies for Patients, Wear School Colors and donate a $1 for XX organization, etc.)
I hope this simple project inspires you to make them with your children. They can start saving for their future and donating to various causes and helping others, while also treating themselves to a little something special!