At my Millionaire Mind Intensive course, and in part of my #1 NY Times Best-Selling book, Secrets of the Millionaire Mind, I teach a very effective money management method — designed specifically to get you to financial freedom.
It’s called the JARS Money Management System.
Basically, using this system, you split your money up into six different accounts, and you have percentages of your money to put into each account. You can use bank accounts or actual jars.
I’ve heard from thousands of my students who have changed their financial lives by implementing this simple money management system, so I knew that these same strategies could help kids, whether they’re 3 or 13, learn how to handle their own finances at an early age. I created the infographic below based on my 6-JARS method for adults and adapted it to fit with a kid’s lifestyle.
So, how can the 6-Jars System work for your child?
You might be thinking,
“My kid doesn’t have any money aside from the allowance I give him and the money he’s saved up from the tooth fairy!”
But here’s the thing… While your kid may not be bringing in six figures (yet!), now is the perfect time to start teaching him or her about managing money — because mastering the habit is more important than the amount.
Imagine your kid wants to become a pro baseball player. You drop him off at the field, but you’ve neglected to bring one critical thing: a bat. So, the fundamental component he needs in order to learn is missing.
The same can be said for money. How can we expect kids to know how to manage money when we don’t put it in their hands to let them practice? So, let them practice now! Start with just $1— or just a few cents!
As Parents, Our Job Is To Instill Habits That Will Help Set Them Up For Their Future
Teaching kids about money doesn’t necessarily mean sitting the whole family down on a Saturday night for a lecture on the benefits of budgeting.
Instead, it’s a matter of sharing your ideas and values with your kids as you go through the routines of daily life together. It means taking the time to tell them how it’s possible to get cash from an ATM, or why people leave money on the table when they exit the restaurant. It happens when you’re planning your family vacation and you show them how you’ve saved up for that visit to Disney World. It’s something you promote by giving your older kids an opportunity to help you pay the monthly bills, or when you interpret your investment statement. True or true?
As parents, it’s our job to instill strong habits and teach sound financial principles that will help our kids become great at managing money as adults.
No matter how old you are, the fastest way to do well with money is to manage the money that you have well. Just show the universe you know how to manage $1, then watch what happens in your life. Let your kids give it a shot!
Be sure to print the 6-Jars for Kids chart and share it with your kids today. Let us know in the comments below — what methods are you using to help your kids become money masters?
For Your Freedom,