Kids + Money = Teaching Moment

We have been trying decide how to teach our kids about the value of money for a while now. I have read so many different ideas and talked to other moms about what they do and I just couldn't find anything that worked well for us. I really liked the idea of having jars to divide the money into 4 categories (tithe, save, others, spend). The downside is having 4 jars x 4 kids is just too much stuff and takes up way too much room.

So, we were talking through this again the other day and my husband came up with a brilliant idea! He suggested that we use folders and zipper pockets for each kid to divide up their money. All money that they earn would be divided evenly between the 4 pockets. The only pocket they can choose to put less money in is the "spend" pocket. This is definitely translating into building the character of putting others first. I am very excited about the teaching opportunities this is going to bring.

Well, I already had 20 1" binders from the back to school sale at Staples a couple weeks ago. Then, Jess told me that Target had those zipper pouches for $.69/each. So, we got the pouches and put the folders together last night. Here is what they look like:

Tithe is the first pocket
(I want them to learn that is the first thing we do with any money we earn)

Save is the second pocket
(this is for long term - once they get $10 in this pocket, I will deposit it into their bank savings account)
Others is #3
(this is for buying birthday presents and things like that)
Spend is last
(again, I want them to focus on what they get last)

This is my favorite part. I love how compactly they are put away.
So far, my oldest 2 earn money from their grandpa by cleaning his paint brushes and helping clean their house. So, Sydney and Jordan don't really have any money to speak of. I guess the question now is, "Do we start allowance?" and "How?". I feel another brilliant idea from my husband coming :)