Saving With Kids: The Jar Method

Money Jar Clever

Children love money, just like adults! It doesn’t take long for them to realize what money can do for them. I remember enjoying those monetary gifts on birthdays and Christmas. Sometimes, I would save, but there were other times when I couldn’t stand it and had to spend every dime. Occasionally, all of it at once. Yep.

But the good news is that even when children spend all their money on one item, they still learn. It may take a few times, but they will learn cause and effect. At every age, we all have learned valuable lessons about money.

One of the best ways to teach children about saving is to provide a nice visual that’s easy to understand and utilize. This is the savings jar method and is easy to use daily.

What is the Savings Jar Method?

I love organizational tools, and this method is an inexpensive way to help children sort out their money. Jars are excellent for creating a system for kids to see their progress with simple labels of “Save,” “Spend, and “Share.”

This method allows children to decide what to do with their money. It’s an excellent way to prepare them for the future and gain excellent money habits early.

The Three Jars and Their Purposes

Save Jar:

This jar helps your child save for larger goals. If they don’t have something specific in mind, help them understand that it’s okay to save, as there might be something they want in the future. Give them examples of things they’ve desired and had to wait on (ex: a new bike, video game, jewelry craft kit, etc.).

Example: If your child wants to buy a new game that costs $50, they can save a portion of their allowance weekly until they reach their goal. You can also help them track their progress by marking a simple savings chart.

Spend Jar:

This jar is for money your child can use for immediate needs or wants. It helps them understand the concept of budgeting and making choices with their money.

Example: If your child gets $10 for their allowance and decides to add $5 to their spending jar, they might choose to use that money for small treats, like buying a toy or going out for ice cream. This teaches them to make decisions and prioritize their spending.

Share Jar:

This jar is for money your child sets aside for charitable giving or helping others. It teaches the value of generosity and empathy.

Example: Your child might choose to donate money from their sharing jar to a local animal shelter or use it to buy a small gift for a friend’s birthday. This helps them learn about the joy of giving and the impact of their actions on others.

Taking Action

Creating the jars: Explain to your child what each jar is for and why it's important. Use simple language and relate the concept to something they understand, like saving for a favorite toy or sharing with friends.

The fun part: Decorate jars with labels, stickers, or drawings to make them appealing and personal.

Money sorting: When your child receives an allowance and earnings, help them decide how to divide it among the jars. Over time, ask them what they think is the best way to divide their money. You can suggest a percentage for each jar, such as 50% for saving, 40% for spending, and 10% for sharing, but the exact split can be flexible based on your child’s goals.

Practice: Make this a routine each time they receive money. Consistency helps reinforce the habit and the values behind it.

Check for progress: You can use charts, graphs, or stickers to track the money in each jar. Visual aids can be invaluable for your child to stay on track and motivated with their budgeting goals. Don’t forget to discuss progress with them regularly and celebrate milestones. It is also important to support them with adjustments if needed.

Learning

Real-life experience: Encourage your child to use their jars in real-life situations. If they want to buy something, help them check their spending jar and decide if they have enough money. If they don’t, discuss how they might save more in the coming weeks.

An idea: Use role-playing games where your child can make spending decisions with their jars. For example, set up a mini-store at home where they can “buy” items with their spending jar money. This makes learning interactive and fun.

Teachable moments: If your child spends all their money in the spending jar and later wishes they had saved more, use this as a teaching moment to discuss budgeting and planning. Don’t forget to guide and celebrate with them along the way.

Conclusion:

The savings jar method is a great way to teach children about money management in a fun and engaging manner.

These concepts help them learn the basics of managing money and are some of the most important skills they can gain.

With patience and creativity, your child will learn basic money management skills quickly. This activity will be one they’ll remember forever and truly enjoy.

So, gather those jars, and let the creativity begin!

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