Welcome to Part IV of the Wealth Jar Series.  Today’s jar is The Living Jar.

 

If you haven’t already guessed it, the Living Jar is for Living Expenses. Now you may be saying; my kids don’t have enough money to pay for their living expenses. What am I supposed to do? Start charging them for their share of the utilities, food, and rent?

 

Well, if your kids are under the age of 18, that may be a little harsh and maybe borderline illegal :).  So don’t go off writing up a lease and tagging the food in the refrigerator just yet. However, this IS a good time to sit down with your kids and have a talk about wants versus needs.

 

Let’s be honest. Many of the things our kids want aren’t necessarily what they need. So instead of constantly swiping the bank card for little trinkets, gadgets, and treats here and there, let your child take some responsibility of purchasing some of these things himself.

Make A List

To start using the Living Jar, have your children make a list of all things they like to buy, but can live without. Some examples are:

• Candy
• Movie Rentals
• Video Games
• Hair Accessories

 

Make An Agreement

Once they’ve completed the list, make an agreement with your kids that from now on, items on that list come out of The Living Jar Money.

 

As a general rule of thumb, 50% of all your kids’ money should be allocated to the Living Jar. So every time your child receives an allowance, gifts, a paycheck, or revenue from his or her own business, 50% of the money automatically goes towards living expenses.

 

I love this exercise because it teaches kids how to be more responsible with their money. Trust me, once you implement the Living Jar and attach it to the list of expenses, your kids will think twice about every purchase they make. They will seriously consider whether or not they want or need it, and ultimately if they should buy it.

 

I hope you’ve enjoyed Part IV of the WEALTH Jar Series. I look forward to sharing Part V with you soon. Please join the conversation and let me know your thoughts below. Feel free to comment, share, and ask questions.

 

To You and Your Kids’ Wealth,

 

Melanie Jane