Over the course of this 6-part Series, I’m going to explain the core principles I teach my very own kids about money management. Use of the WEALTH Jars is the basic foundation your kids need to be money smart and achieve financial success.

I absolutely LOVE the WEALTH Jars. The system is simple, easy, and fun! There are 6 jobs of money, therefore 6 jars.

Most Important Jar

The Wealth Jar we are about to discuss is extremely important. It will literally set the foundation for your kid’s financial future. This jar is why I got into teaching kids about money in the first place. It is EPIC, monumental, the pillar of your kid’s finances. It is hands down THE MOST Important Jar.

The True WEALTH Jar

Let’s talk about the Wealth Jar, also known as the financial freedom jar. I referred to it as the true wealth jar because it’s the only jar that is supposed to “Make Money” for your children. When they put money into the wealth jar, they are to NEVER, and I mean NEVER, touch it, unless they are going to invest the money. And of course, that investment should give them a return in interest, thus making them more money.

 

The rules are pretty simple with the wealth jar. Money goes in and only comes out to invest in a vehicle that makes more money. This is so critical to your kid’s financial freedom. The only way they’ll ever achieve financial freedom is to get their money working for them instead of the other way around. The wealth jar is designed to accomplish this goal.

Temptations

Along the Road to financial freedom, there may be several temptations. Please warn your children that they may have the urge to use the money in the wealth jar for things they want at that moment in time. It’s important to instill in them the concept of delayed gratification. Anything of real value is going to take time and this is no exception. Your kids need to put at least 10% of all their earnings into their Wealth Jar and let it sit until the time comes to make an investment with it.

 

Oh by the way, this is the jar they allocate to FIRST and is why it’s the FIRST jar!  One of the fundamental principles of the wealthy is they always pay themselves first. This is the way your kids can adopt this principle, by paying themselves (the Wealth Jar) first. Always. Always. Always.

 

 

To You and Your Kids Wealth,

 

Melanie Jane