Online Tools

I recently came across an article geared toward investment advisors on the topic of teaching children financial skills (See "Teaching Financial Skills to Clients' Kids" from InvestmentNews, January 2012).  The article described several online tools that can be used to introduce or reinforce money management concepts and I thought they were worth sharing.  The tools included: kidworth.com, highscorehouse.com, allowancemanager.com, and hellowallet.com.  Perhaps you'll find one that fits you and your child(ren)!

Let the fun begin. 

The moon jar project is a great opportunity for kids to learn so many valuable lessons and I hope my kids are no exception.  The only catch is they can’t do it alone.  Yes it is vacation and they may baulk at the idea or you may even, but it’s your turn to take on the teaching role.  This could mean the difference between having junior liviing with you until he’s fifty or moving out and being independent.

Now that you are scared and I have your attention a little time now may save all of us time and money in the future.

So here are a few simple examples of what seems to work for us.

Do you need an actual moon jar container?   No, any containers will work.  Simple to elaborate based on your child’s creativity.  Sophie likes seeing the funds grow so clear containers (peanut butter jars, canning jars etc.) work best for her.  Michael has a strong understanding of money so just keeping a written log works well for him.

Now how much to put where?  Explaining fractions, this is based on age but I think by summer’s end Sophie will have a great understanding of percentages.  We started with 10 dimes which she divided repeatedly to understand how dividing the amount will affect the moon jar accounts.  Then she was able to pick what percentage will go into each account when she makes each of her entries.  Michael thinks she’s much too generous, and needs more in spending but more will be learned than he can comprehend I’m sure.

Once they each had their percentages figured out I wrote them down and let the saving begin.  Each time they earn or acquire money – Sophie found change in a parking lot- we record it.  Temptation to move money, or swipe some without recording will be a valuable lesson also, though I hope it doesn’t happen.

We do not give allowances yet so most funds have to be earned.  Mick and I have explained to the kids’ money spent this summer is their responsibility.  We advised this includes vacation souvenirs, concession stand spending and the like.  Mom and Dad will cover some items at times, but “oh can we stop at Wendy’s” is now met with “do you want to repay me when we get home or at weeks end?”  We haven’t stopped yet for some reason.  Packing snacks and water is coming much easier as well for each of them.

Our first trip to the bank will be this Friday.  I know it won’t be a great amount of interest but they will be watching their accounts grow.  I plan of having them record what they saved over the summer of 2011 and compare to 2012 deposits and interest gained.  This should make for another interesting dinner discussion I imagine.

Well those are some thoughts from our family.  I look forward to reading other ideas, as well as contacting Zoe to have my nails done!

Keep it fun and stress free and everyone will enjoy and come away with some great stories.

God Bless

And so it begins

Hoping to maintain the excitement generated by the Moonjar assembly (great job Student Council!), I have been asking Zoe what she plans to do for the Moonjar project.  The concept of Spend, Save, and Share is not entirely new to her.  We have had a similar type bank for a couple of years now - although only just this year have we really begun to use it and discuss how to earn money, what to save for, and who to share it with.  Her little sister has even gotten into it...and is proving to be quite the saver.  She is intent on "sharing" with her big sister though; not sure where that came from. :) 

After some discussion of lemonade or fruit stands, odd jobs (what's that?), etc. we came up with a list of things she could do.  Essentially, odd jobs and/or talents (painting nails) that she could offer as services.  And thus, a brochure was born.  "Things Zoe Can Do" was produced in a limited quantity due to mom's distribution limitations.

What are your plans for the Moonjar project?  Please share them with us!  You just might start something! 

Thought of the day

To whom much is given, much is expected. 

Moonjar Project Submissions

The Moonjar Project is finally coming to an end. We hope that you had a great summer using your Moonjar and maybe some of you have already donated your Share portion. What organization did you give it to? Why are you interested in that organization? What does the organization do in the community?

Maybe some of you are keeping close track of your Spend bank. Have you spent your money on something special? Are you still saving up for something you cannot wait to buy but just need a little more in the Spend bank? Maybe you cannot decide, but are keeping the Spend bank full for when something catches your eye!

What about Save? What are your dreams that your Save Bank will help you achieve? College? A Special Trip? The sky is the limit for your dreams!

Now that you worked over the last six months, tell us about your adventure. How did you make money? How did you divide your money into the Save, Share, Spend Banks? How did you Spend your money on yourself or others? How did you Share your money? Write or Draw your story and enter to win!

Prizes
Grades 1-2
First Prize - $25 Cash
Second Prize - $20 Gift Card
Third Prize – Spartan Sweatshirt

Grades 3-4
First Prize - $50 Cash
Second Prize - $25 Gift Card
Third Prize – Spartan Sweatshirt

Grades 5-6
First Prize - $100 Cash
Second Prize - $50 Gift Card
Third Prize – Spartan Sweatshirt

Entries are due November 2, 2011 and should be given to your teacher. Entry Forms are attached or ask your teacher.

Good luck and Have Fun! And thanks to all of those that have already submitted. We have your entries and loved reading them.

Top Things to Know

1. When it comes to teaching kids about money, the sooner the better.Up until they start earning a living, and sometimes well beyond that, kids are apt to spend money like it grows on trees. This lesson will help you put your children on the road to handling money responsibly.

Long before most children can add or subtract, they become aware of the concept of money. Any 4-year-old knows where their parents get money - the ATM, of course. Understanding that parents must work for their money requires a more mature mind, and even then, the learning process has its wrinkles. For example, once he came to understand that his father worked for a living, a 5-year-old asked, "How was work today?" "Fine," the father replied. The child then asked, "Did you get the money?"

2. Once they learn how money works, children often display an instinctive conservatism.Instant gratification aside, once they learn they can buy things they want with money - e.g., candy, toys - many children will begin hoarding every nickel they can get their hands on. How this urge is channeled can determine what kind of financial manager your child will be as an adult.

3. Seeds planted early bear fruit later.It's important to work on your child's financial awareness early on, for once they're teenagers, they are less likely to heed your sage advice. Besides, they're busy doing other things - like spending money.

4. An allowance can be an effective teaching tool.When your kids are young, giving them small amounts of money helps them prepare for the day when the numbers will get bigger.

5. Teenagers and college-age kids have bigger responsibilities.Checking accounts, credit cards and debt are as elemental to the college experience as books and keg parties. Teaching high-schoolers about banking and credit will make them more savvy when they leave the nest.

6. Even investing should be learned early.
High schoolers can and should be taught about the market - using real money.

Update from the Allred's

A while back, I posted about how our family was using the Moonjar as the reason to organize a chores program in our house this summer.  The original post is here.  We've been at it for over a month now and here's a few things we've learned along the way. 

• The chores have revealed the way our kids currently think about money.  Meaning - their actions and attitudes surrounding the program are telling us how they are wired.  Are they spenders, savers, counters?...  What motivates them?  In our case, the kids are very different.

• Knowing the differences has helped us guide them individually.  What helps one learn isn't exactly working for the other and vice-versa.

• As the weeks have passed and paydays have come and gone, the kids are becoming more aware of how their own actions affect their financial freedom the subsequent week.  It has been supremely effective to have one child who blew off chores the previous week have to leave Barnes&Noble empty-handed while her walks out with some item she bought with her own money.

• In a related note, it has been wonderfully re-affirming to see the wealthier of the two sometimes offer to buy her sis an ice cream cone even though she was under no obligation to do so.  

 We're now spending a good deal of time talking about what our kids will do to share with others this month (monetarily or otherwise) and it has been really fun to do so.  All because of a goofy three part money box.  Pretty cool.