G4 - Frugality
This week, we're focusing on FRUGALITY!
FRUGALITY is budgeting my resources wisely to that I can be generous and be prepared for future needs. The opposite of FRUGALITY is WASTEFULNESS, letting resources be lost or misused.
It's great to start kids on good money management while they're young. Create three simple "banks" for your child out of plastic containers with lids.
Label each of the containers:
- Saving Money
- Giving Money
- Spending Money
When your child gets an allowance or other money, teach them to divide their money by the 80-10-10 rule.
- 10% of their money goes in the Saving Money bank. This is money to be used in the future for big purchases like a car or college.
- 10% of their money goes in the Giving Money bank. This is money given to a charity or to help others in need.
- 80% of their money goes into the Spending Money bank to be spent on something fun.
What advice do you have for helping kids practice frugality and use resources wisely? Share it in the comments!