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It is never too early to start teaching children about financial literacy. It is important for them to learn about money, how to save, invest and “give back” through charitable donations. My boys, ages 4, 7 & 9 have had piggy banks since they were born and have been collecting money in them from birthday gifts, Christmas gifts and now allowance from chores.
Every month, the boys empty their piggy banks, count their money and use the “My Money” chart I created to figure out where their money will be going. The pie chart delegates 50% to savings, 30% for spending, 10% for investing and 10% for charitable donations.
I printed out a copy of this “My Money” chart and laminated one using my Scotch Thermal Laminator for each of my children. They each count out the money from their piggy banks and write that total on top of the chart with a dry marker.
After figuring out their total, we deduct any of their expenses which may include any accidents (breaking things they should not have touched) or money they may have borrowed to buy things they wanted.
Next, we calculate how much money each percentage is worth and mark it in the correct section of the pie chart.
The “Save” goes into their Saving account, the “Spend” goes into their wallet, for now the “Invest” portion goes into their saving accounts also as we are trying to find suitable child-friendly low risk investment opportunities and the “Donate” portion is given to a charity we choose.