November 2018

Part 1: Teaching my boys about money management

I wish I'd learnt how to manage money when I was young. To know 20 years ago what I know now, financially things would look very different for us.

Using Scott Pape’s technique of 3 jam jars’, each week Hayden (5 years old) and Tristan (just turned 4) do their 3 jobs. Just 3 and we change them each month...they get to pick 2 and I get to pick 1.

So this month once a week they:

- Collect the chicken eggs

- Feed the horses and

- Clean up their toys Sunday afternoon.

They do other things to help out around the place ('because living in a house means maintaining it'), but the '3 jobs' they get paid for. I don’t nag them, I ask them if they want to do one of their jobs and the answer is usually yes. If they don’t do a job then they don’t get paid. There’s no angst, it’s their choice.

After dinner each Sunday we pull out their jars and they get paid $2 per job in change and they decide how much goes in each jar.

Hayden is saving to go to inflatable world, that’s his smile jar. Tristan is saving for a train set (that changes weekly lol).

They take their splurge jar money in their wallets to the shop to buy whatever they want on the day - lollies etc

They'll take their donate jars to the shop next month. They get to choose what food to buy to give to a local charity helping feed people who are having a tough time.

This technique teaches a few things:

- Work ethic

- Choice, can choose to do jobs and get paid or choose not to

- Saving over time for something they want

- Enjoying the money they make by splurging on treats, and

- Giving to others less fortunate.

When they get older we’ll set up accounts and put money into an investment bond. I’ll be able to teach them about building a stock portfolio for long term investing. I’ll show them how we build wealth renting out our property.

They’ll be armed with knowledge and habits to control their finances and create wealth. What amazing freedom that will bring.

Thank you Scott Pape for your inspirational book:

https://barefootinvestor.com/resources/