How to manage money – DAY ONE! – Sofia is taking classes from her daddy. She really wants to get the long haired pony play-set from a store nearby and daddy just told her she could save money to get it herself before her birthday. She is going to learn about money value.
I made three paper envelopes which Sofia and her daddy colored together and assigned each a color and a name. The pink envelope was for Expenses, the blue envelope for Savings and the purple envelope for Giving. Sofia will use the money from the pink envelope to buy her pony play-set.
The Savings envelope is assigned for the money Sofia will put aside weekly from what she receives from her daddy to buy really important stuff in the future. This could be a phone or a bike.
The money from the Giving envelope will be used for acts of kindness and generosity. Sofia will learn to give others from her money. Every time she will receive money from her daddy she will put away 25% into the Savings envelope, 25% into the Giving envelope and 50% for Personal Expenses.
I was amazed to see the excitement on Sofia’s face about starting this project! She was absolutely fascinated!
We are following the principles from Smart Money Smart Kids by Dave Ramsey and Rachel Cruz !