SISS™ BUDGETING FOR KIDS
Acorn Club
Planning Phase
By Failing to Plan, You are Planning to Fail
PLANNING IS THE MOST CREATIVE ASPECT OF THIS SYSTEM.
LET YOUR KIDS DECIDE WHERE THEY WANT TO STORE THEIR MONEY! YOU WILL NEED 4 MONEY HOLDERS AND THEY DO NOT ALL HAVE TO BE THE SAME. IT IS IMPORTANT THAT THEY ARE SMALL AND THAT THEY CLOSE/SEAL ENVELOPES MASON JARS FUN PIGGY BANKS
COIN POUCHES OR WALLETS
Planning Phase
Success is the residue of planning
THESE 4 PHYSICAL MONEY HOLDERS ARE IMPORTANT. SURE YOU COULD PUT MONEY INTO A BANK ACCOUNT FOR THEM & TRACK IT ON A SPREADSHEET. TO A KID, THAT MEANS NOTHING. CASH IS TANGIBLE. THEY CAN LITERALLY SEE THEIR EARNINGS ADD UP.
We're Ready for the
The "I"
Your Kids Will Be Turning This Cash Into a Hard Asset.
THE I IS FOR INVESTMENT. THIS ACCOUNT IS TO HELP TEACH YOUR KIDS ABOUT PASSIVE INCOME AND THE VELOCITY OF MONEY. IT ALSO SHOWS THEM HOW YOU CAN TAKE RISKS AND SOMETIMES THEY WILL PAY OFF AND SOMETIMES THEY MIGHT NOT. WHATEVER THEY CHOOSE TO INVEST IN, WE RECOMMEND SHOWING THEM THE RETURN QUARTERLY AND EXPLAINING HOW IT HAS GROWN (OR NOT.)
Second "S"
THE SECOND S IS FOR STEWARDSHIP. THIS ACCOUNT IS TO HELP TEACH YOUR KIDS ABOUT THE IMPORTANCE OF GIVING. IT IS TRUE THAT THE MORE YOU GIVE, THE MORE YOU RECEIVE. ESPECIALLY IF YOU ARE GIVING FROM A PLACE OF LOVE AND NOT FROM A PLACE OF GUILT. SINCE KIDS UNDERSTAND TANGIBLE GOODS MORE THAN THEY UNDERSTAND MONEY, WE RECOMMEND TURNING THIS MONEY INTO GOODS THE NON-PROFIT IS IN NEED OF AND PURCHASING/DONATING THOSE ITEMS.
Last "S"
Reward Time! Everyone Wants to Have "Fun" Money.
THE FINAL S IS FOR SPENDING. THIS ACCOUNT IS JUST FOR THEM. THEY EARNED OR RECEIVED MONEY AND THIS IS THE REMAINING AMOUNT THAT IS ALL THEIRS! MAYBE THEY WANT TO BUY CANDY OR A VIDEO GAME OR A TOY THAT YOU KNOW THEY WON'T PLAY WITH AFTER 2 DAYS. THAT'S OK! GIVEN COMPLETE AUTONOMY, THEY MIGHT MAKE SILLY CHOICES AT FIRST, AS DO MANY ADULTS, BUT HOPEFULLY WILL LEARN WHEN THEY ARE "WASTING" THIER MONEY. GUIDE THEM TOWARDS ENRICHING ITEMS LIKE BOOKS, CLASSES, GAMES, SPORTS GEAR, ETC. HOWEVER, LET THEM BUY WHATEVER THEY WANT (AS LONG AS IT DOESN'T BREAK YOUR RULES). WITHOUT FUN MONEY, IT IS HARD TO GET THEM TO CARE.
Decide On How Much to Allocate to Each of The 4 Accounts
For Kids 5 & Under We Recommend:
Savings: 10% (Could Add Up For Years)
Investing: 60%
Stewardship: 10%
Spending: 20% (Special Toy)
For Younger Kids We Recommend:
40%
15% Stewardshp: 10% Spending: 35%
For Older Kids We Recommend:
50%
15% Stewardship: 10% Spending: 25%
Have Your Kids Do the Math and Have Change Handy to Help Them
Divide Their Cash Your Child Received $40 for Their Birthday
If Your Percentages Looked Like This: S: 50%; I: 10%; S: 10%; S: 30% Your Child Would Calculate The Following:
$40 x .50 = $20 into Savings
$40 x .10 = $4 into Investing
$40 x .10 = $4 into Stewardship
$40 x .30 = $12 into Spending
*For Odd Amounts, Round to The Nearest Dollar
Secrets to Success
Everytime Your Child Receives or Earns Money, Immediately Work With Them to Allocate It.
Discuss How Close They Are to Reaching Their Savings Goal and Help Them Imagine What It Will Be Like Once They Hit That Goal and Can Purchase That Item.
Let Them Use Their Spending Money Right Away. Provide That Positive Reinforcement So They Stay Committed To This Process.
Have Change (Dollar Bills) on Hand at All Times to Help Exhange and Break Up Their Money. Do Not Cheat On the 4 Physical Money Holders. Get Them, Use Them & Keep Them Safe!
Acorn Club
Secrets to Success, cont.
If They Don't Have Something They Are Really Wanting To Spend Their Money On, Encourage Them To Put More into Savings To Reach Their Goal Earlier. Buy Less for Your Children and Explain To Them They Need To Use Their Spending Money. This Helps Them To Understand Impulsive Desires & Disciplined Spending. If They Want it Bad Enough To Spend Their Own Money On it, Then It Truly is Important to Them.
Do Not Get In The Habit of Letting Your Kids "Pay You Back." You Will Likely Forget & It Doesn't Teach Them Anything.
Golden Acorn Club
