Secrets of Financial Management

Secrets of Financial Management
To some extent, the money could be useful to facilitate our lives. But, if we can not manage money well, we ourselves are affected by the negative impacts. Therefore, it is better if the ability to manage and appreciate money was taught early to our children, so they can grow into a more personal responsibility in using the money. Then, how?

"The system of three empty jars" could be a fun way. Method taken from ThreeJars.com allows parents to create healthy money habits or good habits to manage the money of their children. With a three-jar system, children are taught to be responsible about money at the same time recognize the importance of giving / helping others.

What should be done only to provide three large, empty jars: one jar containing money intended for saving, one jar to save money is intended to be used, and the rest of the jar to save money intended for charity.

The parents can teach their children to put 50% of the money it's children into a jar of "saving", 40% into the jar "expenditure", and 10% into the jar "donation". In this way, the parents establish early patterns of sound money management.
This system can also be supported with the following tips:

- Provide confidence in children to use real money. If the children have started to deal with their own money, rather than their parents' money, the kids will start thinking twice about spending their own money.

- Teach your children that there are "jobs" that will get a "reward". That money can only be obtained if there has been issued for the job.

- Giving the "wages" according to the age of the children. Consider first the age of our children, our hope for the intended use of the wage, and our family budget.

Hopefully this simple way may help to establish healthy money habits in our children all.