posted by TAG Guest Blogger
October 19, 2011 @ 3:59 pm
Thinking back on your own childhood … do you remember your piggy bank? It was probably a round pig, with one hole in the top to plink your coins into. Didn’t you just love the way it sounded when the coin hit the bottom? Or how you felt when you shook out all the coins to count them?
So your old piggy bank taught you two lessons: saving and spending. But what about the other crucial pieces of the financial puzzle: investing and sharing? Why not introduce these four concepts at the same time?
By practicing this form of money management from an early age, healthy habits will develop that will last a lifetime. Here’s how you can get started.
- Determine your method for holding the money. You can purchase a nifty modern piggy bank, or you can take four jars or small boxes, one for each category. It would be fun to decorate your jars or boxes, too. Keep them in a special place.
- For every dollar your child earns or receives, we recommend the following:- Savings: 10 percent
– Sharing: 10 percent
– Investing: 10 percent
– Spending: 70 percent
- Divvy up the money into the appropriate category and watch as each grows. This concept provides some great math lessons, too!
- As the containers begin to fill, consider making a trip to the bank to open an account. Periodically, take your child to make deposits and sit down with the bank statement each month and show them what’s happening with their money.
- Set a goal for sharing – either a dollar amount or date (twice a year, quarterly, etc.) and help your child determine where they would like to donate the money they’ve set aside to share. If possible, physically take them to deliver the check. They will feel great about the difference they’re making!
Looking for a modern piggy bank?
Or you can use jars! Elmo will show you how:
As president of S.C. Economics since 2003, Helen Meyers leads initiatives that provide K-12 teachers with resources for teaching economics. She brings extensive classroom experience to this role in addition to non-profit leadership experience including Junior Achievement of Central South Carolina, National Association of Economic Educators, SC Jump$tart Coalition, Women in Philanthropy and serves on the Talk About Giving Advisory Board.
Meyers received a Bachelor of Science degree in elementary/special education from Western Illinois University and a Masters of Education from Southern Illinois University.