Do you make money? Do you have a job? Do you get an allowance? Well, hopefully you answered yes to one of these questions. But, what do we do with that money?
Saving. Get out an envelope or a jar and write saving on it. This will be the place where you will keep all of your money that you are saving. Some things that you might want to save for could be college, a car, a phone, a new snowmobile, the possibilities are endless. I like to save money for a new toy or I like to save money to get someone a present. Spending. Label an envelope/jar with spending. This is the place where you will keep your money that you can spend on the things you want. Maybe you want to get a phone case, your favorite snack, or a new toy. Giving. Write giving on another envelope/jar. This will be the place that you will keep all of your giving money. It is important to give to charity or a friend/family member in need. If you go to church, you know that there is a collection basket. You can save money to contribute there. You can also use the money to buy a present for someone’s birthday. What is the importance of saving money? The importance of saving money is to help reduce the chance of having debt in the future and to pay for something important. You can use your saved money to pay off your car or student debt. You can also use it to buy a new phone or car.What is the importance of spending money? Spending money is not very important at all, unless you are spending it on something you need like clothes and food. Otherwise, you don’t have to spend money on wants. I’ll be honest, it’s nice to treat yourself once in a while to something new, but it is not necessary. Maybe you could only spend money on what you want if you do something good. An example might include getting good grades for a quarter and buying a new sketchbook. What is the importance of giving money? The importance of giving money is to help out those in need and to help out your community by doing a good deed. Just think, if you ever got into a bad situation, you would want people to do the same thing for you. It also feels really good to help someone or a cause! Need it, or want it? Spend money on the things you need first. Some things may include, clothes, shoes, soap, food, water, gas money, taxes, and shelter. After you have taken care of all of your needs, use the rest of your spending money to buy a want.
Source: Smart Money Smart Kids By: Dave Ramsey and Rachel Cruze (Beginning chapter… I did not read the whole book yet.) https://www.daveramsey.com/store/product/smart-money-smart-kids-book-by-dave-ramsey-and-rachel-cruze
I personally use this option, but I think that both options are beneficial. My mom has always told me to put half of my earnings in the bank and the other half in my wallet. I babysit twice a week and get paid $20. I put 10 dollars in the bank and 10 dollars in my wallet. I use the money from my wallet for spending and giving. By doing this method, you will have money to buy the things you want, to give, and to save up for things you need and want.
Option 1 and 2 comparison:
Both methods are extremely similar. It just depends on what works best for you. If you don’t have a bank account, you will probably want to choose option 1. Try out both options to see what you prefer. Leave a comment on which option you have tried or want to try.