In the year 2018, I attended a parenting course that teach your kids to save money. Do you know how to start when it comes to teaching your children about money management? Did you ever experience your child spending all their allowances at school and asking you for more money to buy things they like? If they are behaving like this, I believe you need to educate them on financial literacy (money management).
For young kids, it may be too profound to ask them to read up books on financial planning. However, it is important to teach them from young how to save money in Singapore. The simple technique that I learnt can be summarized into 3 words. They are Save, Spend and Share. This simple concept teaches our kids about responsible money management through allocating their allowance into 3 simple buckets.
Save, Spend and Share
The word “Save” means to save money. Teach your kids to set money aside for things that they want to buy in the future. For working adults, this can be about setting aside a portion of your income for future needs or goals. Future needs or financial goals can be to establish an emergency fund, save for big purchases or plan for retirement.
The word “Spend” means to spend money. How do we enjoy life without spending? Teach your kids to set money in this bucket whereby they can use the money in this bucket to buy things. The money in this bucket can be used for their daily expenses.
The last word “Share” means to share the money with others. As kids, they naturally love to help others. Thus, they can either donate the money in this bucket to help people or buy something to share with their siblings or friends. Giving back to the community or helping others can be incredibly rewarding. Whether it’s through donations, supporting family and friends, or volunteering your time, sharing can bring a lot of joy.
Effectiveness of Save, Spend and Share Technique
The save money, spend money and share money technique mimics the commonly used budgeting technique which is also known as the 50-30-20 rule. The 50-30-20 money saving rule is a simple and effective guideline to help individuals manage their finances and save money.
According to this rule, 50% of your income should go towards necessities like rent, bills, and groceries, 30% towards discretionary spending like dining out, entertainment, and shopping, and 20% should be saved or invested for future goals.
By following this rule, you can ensure that you are prioritizing your financial well-being while still allowing yourself some flexibility for enjoyment and leisure activities.
Save, Spend and Share Gift Ideas
As Christmas is nearing, I would like to share some of the interesting gifts I found online on Amazon.
Moonjar Classic Award-Winning Save Spend Share Educational Tin Toy Bank with Passbook
One of them is the “Moonjar”. This is an educational toy which teaches kids to save, spend and share. “Moonjar” is made up of 3 diamond-shaped containers. The canisters are labelled with SAVE, SPEND, or SHARE.
Maxwill Save Spend Share Piggy Bank for Kids
The second interesting gift I found is the Maxwill Bank Blocks. The piggy bank is made up of 3 blocks (Save, Spend and Share). The bank blocks are designed to help Lego loving kids develop long-term smart money habits and goal-setting skills.
Disclaimer: If you buy something through the above links, I may get a small share of the sale.
Make Your Own Save, Spend and Share Gift
Above are the Save, Spend and Share jars that my kid made himself with plastic containers. These can also be wonderful gifts for kids as Christmas presents!