SPEND SAVE GIVE
CHUTTI CROREPATI CLUB 2011 -2012 PROJECT
Raising money smart kids isn’t just a nice idea. In these difficult times, it is more important than ever to help your kids learn how to manage money. Giving children an allowance and a plan for spending their money offers the best chance to teach children critical skills to become smart about money. Giving your child even a small amount of money they can learn to spend on their own, which will benefit them in the future. Experts indicate children learn more by having their own money to spend, so give serious thought about giving your child an allowance. In coming up with the right amount to pay your child, you need to consider your child’s age, your household budget and what you will have your children pay for with their allowance.
Parents often complain that their children never ever think of saving money. How many parents actually give their children an opportunity to save? Often they are not given an allowance unless they are in boarding school or a hostel in college. Parents have so many opportunities to inculcate the habit of saving in their children. A small example is when the parents take their two children to an Ice cream parlor. After the children order what they want the parent just pays the bill. What if each kid was given Rs.30 each and told to buy want he wanted and he or she could keep the change. You have started giving your children a choice on how to handle money. The kids would definitely want to know the price of different ice creams before he decides to buy one. Because he or she knows what remains from RS.30 is his or hers . Here is what we plan to do with the money saved and money received as an allowance and money received as gifts.
We need three uniform size bottles or jars.
To use the “Give ~ Save ~ Spend” jars, simply cut the printable jar labels and glue or tape onto clear jars. As your kids receive an allowance or receive gifts from grand parents , they can learn how to manage their money. You can decide as a family how much money should be deposited into each jar (i.e. 5% into giving, 25% into saving, and 70% into spending).
Money in the “Give” jar can be given to charity, or used to help another family in need. Money in the “Give “ jar can be used to even buy a toffee for a friend or a pen for grandpa on his birthday. The idea is to give your money to someone else to make them happy and see a smile on their face. Money in the “Save” jar can be placed in a savings account at a local bank when the child has enough to open an account. Money in the “Spend” jar is for trips to the toy store and other items your child just “has to have”. Often, you’ll find that when your child has to take money out of his/her “Spend” jar to purchase an item instead of asking you to buy it, they think twice!
Using the “Give ~ Save ~ Spend” jars also provides a wonderful opportunity for candid conversations about money in your family and great teaching moments with your kids! Offer advice on how your children use the money in the ‘Save ‘ Jar. Let the children make their own choices about how to spend money from their “spend “ jar. Doing this will help them become money smart and make better spending choices. If they purchase a toy from the first store without shopping around for a better deal in another store, they will learn from their mistake. Making money mistakes as a child will help your child make wiser financial decisions as an adult.
Simple rules of the project.
1. The amount that goes into each jar is decided by the kid with the help of her mum or dad.
For example :- For every Rs.10 or 100 – the Spend bottle gets RS.7/Rs.70, the Save bottle gets Rs.2.50/Rs.25 and the Give bottle gets 50 paise /Rs.5 .
2. This ratio should not be changed frequently. But it can be changed in consultation with her parents.
3. Worst case scenario in ratio can be 98% - 1% - 1 % (for those who want to spend all their money). For those who want to spend all their money (100%) need not participate in the project. This project introduced by the students of PSC for the students of PSC starting from LKG (Lower Kindergarten) to Class V.
4. All money received by the children should be allocated to the respective jars in the ratio decided by them.
5. Each jar should have a slip of paper that accounts for date-wise , every deposit or withdrawal and the current balance of the jar. Details of money received should also be mentioned. The spend jar slip would show the spending habit of the girl and she could reflect about it.The account slips are reviewed every 4 months by the Financial Education teachers of the school and marks will be awarded under 'Life skills' .
6. Rules of transfer of money from one jar to another.
(a). Transfer of money can take place only from Spend jar to either Save or Give jar.
(b). Money from Save or Give jar cannot be transferred to Spend jar.
(c ). All transfers have to be done in consultation with the parents.
(d). Transfer details have to be mentioned in the accounts slip in each jar.
Lessons to be learnt from this project.
1. Kids would learn about the value of money.
2. Kids would learn about their spending habits and reflect about it.
3. Kids would experience the “Joy of Giving”.
4. Kids would learn to put their money saved to work for them by earning interest from banks
or by investing them in Mutual funds and watch their value increase over time.
Parents often complain that their children never ever think of saving money. How many parents actually give their children an opportunity to save? Often they are not given an allowance unless they are in boarding school or a hostel in college. Parents have so many opportunities to inculcate the habit of saving in their children. A small example is when the parents take their two children to an Ice cream parlor. After the children order what they want the parent just pays the bill. What if each kid was given Rs.30 each and told to buy want he wanted and he or she could keep the change. You have started giving your children a choice on how to handle money. The kids would definitely want to know the price of different ice creams before he decides to buy one. Because he or she knows what remains from RS.30 is his or hers . Here is what we plan to do with the money saved and money received as an allowance and money received as gifts.
We need three uniform size bottles or jars.
To use the “Give ~ Save ~ Spend” jars, simply cut the printable jar labels and glue or tape onto clear jars. As your kids receive an allowance or receive gifts from grand parents , they can learn how to manage their money. You can decide as a family how much money should be deposited into each jar (i.e. 5% into giving, 25% into saving, and 70% into spending).
Money in the “Give” jar can be given to charity, or used to help another family in need. Money in the “Give “ jar can be used to even buy a toffee for a friend or a pen for grandpa on his birthday. The idea is to give your money to someone else to make them happy and see a smile on their face. Money in the “Save” jar can be placed in a savings account at a local bank when the child has enough to open an account. Money in the “Spend” jar is for trips to the toy store and other items your child just “has to have”. Often, you’ll find that when your child has to take money out of his/her “Spend” jar to purchase an item instead of asking you to buy it, they think twice!
Using the “Give ~ Save ~ Spend” jars also provides a wonderful opportunity for candid conversations about money in your family and great teaching moments with your kids! Offer advice on how your children use the money in the ‘Save ‘ Jar. Let the children make their own choices about how to spend money from their “spend “ jar. Doing this will help them become money smart and make better spending choices. If they purchase a toy from the first store without shopping around for a better deal in another store, they will learn from their mistake. Making money mistakes as a child will help your child make wiser financial decisions as an adult.
Simple rules of the project.
1. The amount that goes into each jar is decided by the kid with the help of her mum or dad.
For example :- For every Rs.10 or 100 – the Spend bottle gets RS.7/Rs.70, the Save bottle gets Rs.2.50/Rs.25 and the Give bottle gets 50 paise /Rs.5 .
2. This ratio should not be changed frequently. But it can be changed in consultation with her parents.
3. Worst case scenario in ratio can be 98% - 1% - 1 % (for those who want to spend all their money). For those who want to spend all their money (100%) need not participate in the project. This project introduced by the students of PSC for the students of PSC starting from LKG (Lower Kindergarten) to Class V.
4. All money received by the children should be allocated to the respective jars in the ratio decided by them.
5. Each jar should have a slip of paper that accounts for date-wise , every deposit or withdrawal and the current balance of the jar. Details of money received should also be mentioned. The spend jar slip would show the spending habit of the girl and she could reflect about it.The account slips are reviewed every 4 months by the Financial Education teachers of the school and marks will be awarded under 'Life skills' .
6. Rules of transfer of money from one jar to another.
(a). Transfer of money can take place only from Spend jar to either Save or Give jar.
(b). Money from Save or Give jar cannot be transferred to Spend jar.
(c ). All transfers have to be done in consultation with the parents.
(d). Transfer details have to be mentioned in the accounts slip in each jar.
Lessons to be learnt from this project.
1. Kids would learn about the value of money.
2. Kids would learn about their spending habits and reflect about it.
3. Kids would experience the “Joy of Giving”.
4. Kids would learn to put their money saved to work for them by earning interest from banks
or by investing them in Mutual funds and watch their value increase over time.
All students from LKG to Class V have to do the project. If we get a positive response from parents we may have this project on a continuous basis . All students will continue the project every year till they pass out of Class V .So LKG students will continue for six years and the present Class V will participate for just a year. Every year a new batch of LKG students will join the project.
At the end of the year they are awarded marks in ‘Life Skills’. Parents of the students have to actively participate in the project. Parents have to give their child Rs.10 per week . Parents may give more but they have to have a constant amount. The child will decide how much of it she wants to spend, how much she wants to save and how much she wants to give. The child decides on a ratio and puts the money in the respective jars. The jars will be in custody of the parents. The respective jars will have an account slip. The accounts can be entered by the parent for the very young girls till they are able to make the entries themselves. If the parents do not know English they can make the entries in Tamil.
The Rs.10 that has been decided for the project is the minimum that the parent has to give per week. Parents however can decide on how much they want to give their child per week, The marks awarded is not going to be on how much the child saves in value. Marks will be awarded based on various criteria that will be assessed from the account slips and notes that the children have to maintain at home. These notes and account slips will have to be produced in school once in four months. The money need not be brought to school. Since we are introducing this for the first time in PSC School we request an active participation from parents and teachers and their ideas are welcome.
At the end of the year they are awarded marks in ‘Life Skills’. Parents of the students have to actively participate in the project. Parents have to give their child Rs.10 per week . Parents may give more but they have to have a constant amount. The child will decide how much of it she wants to spend, how much she wants to save and how much she wants to give. The child decides on a ratio and puts the money in the respective jars. The jars will be in custody of the parents. The respective jars will have an account slip. The accounts can be entered by the parent for the very young girls till they are able to make the entries themselves. If the parents do not know English they can make the entries in Tamil.
The Rs.10 that has been decided for the project is the minimum that the parent has to give per week. Parents however can decide on how much they want to give their child per week, The marks awarded is not going to be on how much the child saves in value. Marks will be awarded based on various criteria that will be assessed from the account slips and notes that the children have to maintain at home. These notes and account slips will have to be produced in school once in four months. The money need not be brought to school. Since we are introducing this for the first time in PSC School we request an active participation from parents and teachers and their ideas are welcome.
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