As a parent, you teach by example. You should lead by example and encourage your children to pick up habits. In a perfect world, your children should start saving their money between the age of three and five. A great idea is to use three mason jars to hold money for your kids: one jar for spending, one jar for saving, and one jar for giving. Children understand these three concepts.
However, there’s a fourth jar that most parents often miss: Taxes. For now, start with three and then add the tax jar when your children start to mature. The jar method works far better when the children actually earn the money for their jars. For instance, you can give them money in exchange for doing chores. Take time as you go through the process of teaching your children about money. Don’t be afraid to repeat yourself; it’s going to take a decent amount of time for them to understand all the concepts. Also, have a real talk about money and what it does. For instance, tell them it’s not free; it has to be earned. At some point in time, your children will have to save money. It’s essential to prepare them ahead of time.
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