Friday, April 29, 2016

Show Kids How To Compartmentalize Money

Today’s fantastic family finance article is:

Mixed Up Money Vs Organized Money

“Hmmm... Do I have enough to go out to the movies tonight? Lemme think... I know I’m setting aside some money for emergencies, and I’m saving toward my first car, and something else... Can’t remember off hand. Oh well, I probably have enough...”

When all your money is in one account, it can be very difficult to keep your financial priorities organized in your head. Spending meddles with saving.

Show your kids a better way. Show them how to keep money compartmentalized. Divide it into separate buckets, each labeled for a specific purpose.

Start the habit early. For youngsters, those buckets might just be labeled jars or titled accounts in a family bank spreadsheet. Older kids might use separate prepaid cards or bank subaccounts.

Clearly bucketed money has a way of staying put until its intended purpose comes calling. Mixed up money has a way of wandering at the first opportunity.

Keep your dollars in the right compartments.

P.S. Share the other smart saving tricks in today’s article with your kids too.

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