If you are like most kids in America, the answer is not long enough! As Americans, we typically want, want, want and we want it NOW! This need for instant gratitude is a major problem when it comes to money management. Taking the time to plan out what your “spending goals” are in advance will help with this problem. Decide what item you want to buy, (or which event you need to pay for). Then do a little research on that product. Comparison shop, compare details, check features and prices. Determine what amount of money you will need to get the item you want and then determine how much of your allowance or other money you’ll need to save in order to reach the needed amount. Having both a goal and a plan to reach your goal will help you fight off the urge to spend your money the minute you get it.
Experts recommend placing approximately 30 percent of your money into a savings account, spending approximately 30 percent, and then donating or “sharing” the remaining 30 percent with your favorite charitable organization. Depending on how quickly you want to reach your goals, you may want to devote more money to savings and less to spending.
One money management activity that you can try at home is to label three wide mouth jars to use as banks. Label the jars: “Save”, “Spend” and “Share.” Use pictures, stickers, or ads from sales papers and catalogs to help remind you of your goals and keep you focused. Each time you receive money, divide it up right away and place it in the appropriate jars. Do not borrow any money from the “Save” or “Share” jars to buy things that you want right now. Learn to stick with the plan and save your money up until you can buy the things you want without “borrowing”. A good way to remind yourself not to spend out of the “Save” and “Share” jars is to place them in a separate place from the “Spend” jar. Use the “Share” jar to build up funds to donate to your church or a charitable organization.
Parents can help children learn better money management skills by discussing budgeting and the difference between needs and wants with their children. Younger children need reminders from parents of their longer term goals, and for charitable giving. All children need to see good examples of financial resource management skills by the adults in their lives, in order to learn and adopt these practices in their own lives.
If you would like more information on financial resource management contact: Christie Family and Consumer Sciences County Extension Agent, Nevada County Cooperative Extension Service at 887-2818.
