Our small group is doing Dave Ramsey’s Financial Peace University. We actually have a real trainer in our group and he’s offered to do FPU many times over the years. We all stupidly said that we had our systems and they were working for us as if we couldn’t have gained anything from a millionaire money genius. (Dave Ramsey, not our friend…but I’m sure our friend will be a millionaire money genius someday.) Needless to say, I wish we would have done this years ago.
Part of the program is teaching your kids about money. What a novel idea! This past year Gray saved up over $200 to pay for an ipod touch. We were so proud of him for doing such a great job saving but we didn’t really teach him anything other than he needed to save his money to buy expensive extras.
Our boys need to know how to handle all of their money so we’re going to introduce the envelope system to them. Every dollar that touches their little hands will get broken down by 10% to save, 10% to give, and the rest to spend. All of our boys have piggy banks but these do not help them organize their cash. I’d seen the 3 jar system, but I don’t really like the idea of their money being on display in their rooms. My friend, Susan, picked up coupon organizers for her kiddos so I have taken her fabulous idea and tweaked it to work for my boys.
First stop was to go to Target to see if I could find any coupon organizers and it was my lucky day! Look what the boys picked out of the dollar bins!
Once we were home I whipped out my label maker ready to label the tabs when I noticed that inside the organizer was a sheet of labels that were already the perfect fit for the rounded tabs. So I put my label maker back and pulled out a Sharpie. The 1st tab is savings because you are supposed to pay yourself first. The 2nd tab is give because we are called to be generous with the gifts we are given. Then the 3rd is spend. There are 3 more blank tabs after the spend tab so the kids can save part of their spending money for those expensive extras like ipods.
This isn’t a permanent home for their cash. Every month or so the savings will go into their savings accounts to be saved for something big like their cars. We will also let the boys decide how they are going to donate their give funds. I think it’s important for them to decide how they give so they get the thrill of generosity. We will talk with them about their spending choices to help them spend their money wisely. Our hope is that our boys will not have to learn money lessons the hard way, but will have good habits in place when they are supporting themselves.