While researching anonymous transaction data on our family finance site today, I stumbled across this delightful deposit for a 7 year old:
| 03/20/2017 | $8.62 | For counting Dad’s coins |
I love it! Use your spare change jar to creatively engage your youngster in some personal finance basics.
Offer your kid a deal. If she stacks your spare coins into neat little $1 piles, you’ll let her keep a hefty share.
Convert her piles into crisp dollar bills, or deposit the equivalent sum right into her account.
She’ll be surprised how much money accumulates in a change jar over time. I bet $8.62 was an exciting windfall for that 7 year old.
It’s an important personal finance lesson: even micro savings can add up to significant sums over time.
In fact, if the sum is anything north of trivial, encourage your child to split the bounty between spend, save, and give buckets. (See tips on choosing the right percentages here.) Separating funds into purpose-driven partitions is an effective money management technique. Help your child form the habit early.
So, don’t let your change jar just sit there collecting coins. Use it to dispense some valuable financial wisdom to your kids.
P.S. Got teens? Try setting up a swear jar, and let the proceeds flow to the family instead!
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I have friends that are telling me that these spare change jars are perfect for creating pocket money funds. And I think it's a great way to start teaching your kids about the ways of finance and savings! They should do the same and be able to spend it when they hit a certain goal at the end of the day too!
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