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Savings and spending jars for talking to your child about money infographic

 

Text Version: Savings and Spending Jars

“Can I have this”, “Mummy I need this…” do these phrases sound familiar to you when you’re at your local supermarket? Most young children don’t realise the value of money and although we want to be able to give our children everything they wish for, it is simply impossible. Why not try using our Saving and Spending Jars technique to help teach your child about money.

Teaching your child about money and the importance of saving is one of the most imperative life skills they could possibly learn, so the earlier they understand the better it will be for them in the future. Although trying to teach your child about saving is important, it is also just as important to help them to understand the concept of spending their money, and unfortunately how quickly it can disappear.

 

The Jars

Allowing your child to split their pocket money will allow them to understand about disposable money as well as grasping the idea that some products or activities take longer to save for.

Introducing two separate jars, labelled ‘saving’ and ‘spending’ is a good way of teaching your child about splitting any money they may receive through birthdays, chores, pocket money and even the tooth fairy into the two separate jars.

 

Savings Jar

A savings jar will give your child the understanding of having to wait for more costly products which they desire, be it a toy they’ve had their eye on for a while or the new latest craze. Encouraging them to buy it for themselves with their money will also help you to save your own money, win-win!

You could print an image of the desired toy and attach it to the savings jar to remind the child why they’re saving, which can help encourage them.

Ensure the desired object is affordable and won’t take your child too long to save for. Keeping a total of how much is in the jar, and the target amount for their new toy, could also encourage your child to save. This also assists with keeping track of their money.

 

Spending Jar

The savings jar is where your child should keep their money for when they’d like to buy little goodies from the shop like sweets or a magazine. If your child is given weekly pocket money it’s good to make sure they are adding a little money to their spending jar, but also making sure some is going into their savings jar too.

Allowing your little ones to buy small treats shows them how quick this money can disappear and will help them learn that once the money is gone they can’t get it back. Over time you may see that your child decides to save more money than the week before as they would rather sacrifice their favourite chocolate bar to have their new toy sooner.

 

You could also...

Add another jar for sharing, and this money could be donated to a charity of your child’s choice or even used to buy a little something for Mum or Dad's birthday.

Why not bring their money lessons into the real world and let them pay for their own treats and toys at the store. Make sure they are handing over enough money and receiving the correct change. This can help increase confidence when dealing with money.

Saving for their future, how about yours? Find out more about our ISA