Save, Spend & Share Jars: Usage and Benefits

Learning about personal finance can be challenging, especially for kids who are starting to understand money.

Save, Spend, and Share Jars offer a hands-on approach to instill financial literacy in a fun and engaging way.

This guide explains how these jars function, their benefits in teaching responsibility and generosity, and practical tips for creating and using them effectively.

Whether you’re a parent, teacher, or want to improve your budgeting skills, you’ll find tips to improve your financial progress.

What are Save, Spend, and Share Jars according to financial experts?

Save, Spend, and Share Jars are tools to help children learn about money through real-life practice. They are inspired by advice from financial specialists like Daniella Guzman and Beth Kobliner.

These jars teach kids how to budget, save for goals, spend wisely, and enjoy giving to charity. Each jar has its own purpose to promote good financial habits early on, helping kids become responsible with money and learn how to manage their finances over time, establishing long-term saving practices. The National Education Association (NEA) highlights similar tools as effective methods for teaching financial literacy to young learners, emphasizing the importance of such practices. For an extensive analysis of methods to teach smart spending habits, our comprehensive study on teaching kids smart spending explores practical strategies using financial tools like Till Financial.

How do Save, Spend, and Share Jars work?

Save, Spend, and Share Jars help children manage their weekly allowance by dividing it into three jars.

The Save Jar is for setting money aside for goals you have later, the Spend Jar is for buying things you want now, and the Share Jar is for donating to charity and supporting others.

By using these jars regularly, children can learn basic money management principles and understand the importance of being responsible with money over time, which supports their financial growth later on. In fact, children’s understanding of financial literacy has been studied extensively, including insights from ScienceDirect that highlight the role of parents in shaping these habits (as discussed in a recent publication).

What are the Benefits of Using Save, Spend, and Share Jars?

The benefits of using Save, Spend, and Share Jars go beyond just handling money; they are important in teaching kids about managing money wisely.

With these jars, children learn to manage money, build positive spending habits, set savings targets, and understand the importance of sharing, teaching them basic investment ideas.

These jars provide special learning chances that help build lifelong money skills and improve a child’s grasp of how money works (our tips for teaching kids to save and track money explore this further).

1. Teaches Financial Responsibility

Using Save, Spend, and Share Jars teaches children financial responsibility by providing a structured way to manage their allowance and understand money’s value.

This practical method teaches kids about budgeting and helps them think carefully about their money decisions.

When children put part of their allowance into the ‘Save’ jar, they learn to set aside money for things they want later, like a new toy or game, instead of spending all their money immediately.

The ‘Spend’ jar lets them buy things they want right now while learning how much they can afford. The ‘Share’ jar provides an important lesson in kindness and the importance of helping others, building a sense of togetherness.

Through these teaching moments, children gradually develop essential skills in financial literacy, ensuring they are better prepared for responsible money management in adulthood.

2. Encourages Goal Setting

Save, Spend, and Share Jars help kids learn how to set goals, allowing them to organize their savings for particular things they want to buy or give to charity.

By using these jars, children can see how they divide their money for different purposes, which helps them learn responsibility and money management early on.

For instance, if a child wants a new toy, they can allocate a certain amount to their `Spend’ jar each week. This method helps them understand their money goals and learn patience, emphasizing the need to budget.

Integrating rewards for achieving savings goals-such as a family outing or a small treat-can reinforce positive saving habits. These strategies make banking enjoyable and interesting, helping children learn the importance of managing money wisely and spending carefully.

3. Promotes Generosity and Empathy

The Share Jar promotes generosity by encouraging children to allocate a portion of their allowance to charitable causes and community support.

Through this effort, young people learn directly about how their actions impact others. For instance, they can support local animal shelters by donating toys or food, which teaches them about compassion towards animals in need, reinforcing the value of giving.

Alternatively, by contributing to community food drives, they learn the importance of fighting hunger and helping those less fortunate. These activities teach children to be responsible and help them connect with their community, encouraging them to care about others and understand the needs of society.

The Share Jar serves as a practical tool that nurtures a lifelong commitment to generosity.

4. Helps with Budgeting and Expenses Tracking

Save, Spend, and Share Jars aid in developing essential budgeting skills by allowing children to see their money divided into various categories.

By using these jars, children can grasp fundamental financial concepts in a tangible way. For example, when they receive an allowance or birthday money, they can allocate portions to saving for a toy, spending on treats, or sharing with a charity.

This visual guide makes budgeting easy to understand and promotes active involvement in financial decisions. Techniques like the 50/30/20 rule can be applied to jars, teaching children how to split their money into essentials, desires, and savings. For further understanding, NerdWallet offers a 50/30/20 budget calculator that can help families incorporate these methods effectively.

Over time, this practical method helps people learn about handling money, encourages thoughtful spending, and supports careful budgeting.

How to Create and Use Save, Spend, and Share Jars?

Using Save, Spend, and Share Jars is a simple way for children to manage their allowance and learn about handling money, helping them become better at managing their finances. For parents looking to deepen these skills, tips on teaching kids to save and track money offer practical guidance on instilling financial responsibility.

1. Determine the Purpose of Each Jar

Figuring out what each jar is for is important for managing money well. It helps children learn the specific reasons for saving, spending, and sharing.

Clearly defining the purpose of each jar allows younger individuals to grasp the significance of financial planning from an early age. It creates a setting where they understand the importance of managing their money carefully, leading to a better grasp of handling finances.

By assigning specific functions to each jar, like saving for a desired toy, spending on treats, or sharing with those in need, children can track their progress. This organization aids them in developing better budgeting skills, enabling healthier spending habits.

This steady process encourages a way of thinking that appreciates careful spending, eventually teaching lasting money skills.

2. Set Up a System for Depositing Money and Monitoring Income

Setting up a system for depositing money into each jar helps instill consistent financial habits in children.

To make a regular schedule, choose one day each week for adding money. This helps children look forward to the activity and makes them part of managing their money.

For instance, if children receive a weekly allowance, encourage them to set aside portions for each jar-savings, spending, and giving. This practice teaches the importance of saving and helps them make choices about their money, nurturing habits that are aligned with the 50-30-20 rule.

To track deposits, introduce simple charts or apps that are engaging and age-appropriate, promoting accountability and excitement about reaching their financial goals while nurturing essential budgeting skills.

3. Make a Plan for When to Use the Money and Understand Expenses

Creating a plan for when to use the money in each jar provides children with a structured approach to managing their finances, ensuring they comprehend the impact of instant downloads and online shopping on their budget.

By learning when to spend, save, and give, they gain important skills that go beyond basic money handling.

It is essential to teach them how to allocate funds wisely, depending on their short-term and long-term goals. For example, encouraging a child to wait before purchasing a desired item can help reinforce the concept of delayed gratification, while allowing them to donate a portion of their earnings nurtures generosity and empathy.

This method makes financial practices clear and helps improve knowledge of budgeting, teaching important lessons about managing resources that will be useful in adult life.

4. Keep Track of the Money in Each Jar and Review Expenses Regularly

Paying attention to the money in each jar is important for managing money well and helps children learn about their spending habits, which is important for managing personal finances and preventing credit card debt later.

By employing simple methods such as maintaining a ledger or utilizing a budgeting app, children can visually see how their money is allocated and spent. This practice teaches them to be accountable and assists them in making wise financial decisions.

As they categorize their expenses, they become more aware of where their money goes, leading to more thoughtful choices and the development of lasting budgeting skills. When people gain knowledge, they understand their responsibility to set financial goals, recognizing the importance of saving for upcoming expenses.

What are Some Tips for Using Save, Spend, and Share Jars Effectively?

Teaching kids to use Save, Spend, and Share Jars includes practical advice to help them learn about handling money and encourage good financial habits.

1. Be Consistent with Depositing and Using the Money

Regularly putting money into and using the Save, Spend, and Share Jars is important for building good money habits.

This practice helps to understand money management and creates a regular habit essential for developing lasting routines.

Kids can learn why saving money is important by regularly adding money to their jars. This helps them see how money works and teaches them to wait for things they want. Promoting a careful way to use coins from these jars can help make wise spending choices.

By talking about what each jar is for and setting savings goals, parents can create a helpful setting that teaches important lessons about choosing needs over wants, thus improving their children’s overall grasp of managing money, similar to techniques discussed by Dave Ramsey and Beth Kobliner.

2. Involve Children in the Process

Involving children in handling their Save, Spend, and Share Jars helps them learn about money management, much like the strategies shared by Rob Phelan and Sofia from NBC4.

By actively engaging them in conversations about money, parents can help children grasp fundamental financial concepts, promoting financial wellness. It’s essential to ask them questions about their choices, encouraging them to reflect on what they might want to purchase or how they might allocate their savings account between these jars.

When kids directly participate, they can share their ideas and emotions about handling money, which helps them feel in control of their financial choices. Discussing the reasons behind spending, saving, and sharing promotes critical thinking, guiding children to make informed choices while developing their values around money.

3. Adjust the System as Needed

Adjusting the Save, Spend, and Share Jars system can help it meet the new money goals of children.

As people learn more about handling their finances, they should regularly check the distribution in each jar to make sure it matches their increasing goals and education.

For example, as kids learn more, they can focus more on saving for bigger buys, letting them put away more money for goals they have later on.

Suggesting new uses for the Share Jar, such as helping a charity or local event they are interested in, can develop feelings of compassion and accountability, a value highly regarded in Jewish families.

By being flexible and adjusting the jar system to fit their changing needs, caregivers can help children learn about money management, reinforcing the values of budgeting, saving, and giving, as taught by financial institutions like De Nederlandsche Bank.

4. Set Realistic Goals

Setting practical targets for the Save, Spend, and Share Jars is important to motivate children to take part and do well in learning about money, getting them ready for college savings and managing shopping expenses.

By guiding children to set realistic savings goals and control their spending, parents can help them understand the importance of handling money wisely.

It’s important that these goals match the child’s growing knowledge of financial literacy; for example, talking about the difference between wants and needs can improve their budgeting skills.

Discussing how much they can realistically save or spend helps them learn to make wise decisions with money.

This process improves their hands-on experience and helps them develop lasting habits of responsible financial behavior.

Are There Any Alternatives to Save, Spend, and Share Jars?

Children can learn how to manage money and make good decisions in ways other than using the Save, Spend, and Share Jars. For instance, understanding the differences between allowance and rewards can offer valuable insights into effective money management strategies for kids. To explore these distinctions and best practices, learn more about how U.S. families implement these systems.

1. Virtual Jars or Budgeting Apps

Virtual jars or budgeting apps offer a modern alternative to physical Save, Spend, and Share Jars, providing an interactive platform for financial management.

These digital tools help children by showing their savings and expenses with fun images and interactive activities.

With features like adjustable budgets and spending categories, children can keep track of their financial choices instantly, helping them learn more about managing money.

Many of these applications provide educational tools, quizzes, and tasks that help improve financial knowledge. They help young users monitor their money and learn important budgeting skills that will be useful for them in the long run, similar to methods taught at the University of Cambridge.

2. Traditional Piggy Banks or Physical Jars

Traditional piggy banks or physical jars remain popular alternatives for teaching children about saving and money management.

These tangible items serve as practical visual aids, allowing children to grasp the concept of saving in a more engaging way.

When children physically deposit coins into these containers, they can witness their savings grow, which reinforces the idea that consistent saving leads to financial rewards.

These items can spark discussions about financial goals, budgeting, and the value of delayed gratification.

When children use these practical tools to learn about saving money, they can develop financial skills that will help them as adults, guided by popular options like Smart Piggy Trio Bank and Moonjar.

3. Other Budgeting Methods

Other budgeting methods can complement or substitute the use of Save, Spend, and Share Jars, expanding the options for teaching financial literacy to children.

Alternative strategies, such as the envelope system or digital budgeting apps, offer parents innovative ways to engage youngsters in money management.

The envelope system involves allocating cash to different categories, helping children physically see their spending limits. Digital apps present another layer of interactive learning, allowing children to track their expenses and savings in real time.

Using these methods along with the jar system, including Learning Resources, can give children a well-rounded financial education, helping them learn the importance of budgeting through both theory and hands-on practice.

Utilizing a mix of these approaches lays a solid foundation for lifelong financial responsibility.

Frequently Asked Questions

What are Save, Spend & Share Jars and how can they benefit me?

Save, Spend & Share Jars are a budgeting method where you divide your income into three categories: saving, spending, and sharing. These jars can benefit you by helping you better manage your money, reach your financial goals, and make intentional decisions about how you use your income.

How do I use Save, Spend & Share Jars?

To use Save, Spend & Share Jars, start by deciding on a percentage of your income that you want to allocate to each jar. For example, you may choose to put 50% of your income into the Save Jar, 30% into the Spend Jar, and 20% into the Share Jar. Then, when you receive your income, divide it according to your chosen percentages and place the money into each jar. You can then use the money in each jar for its designated purpose.

What are the benefits of using Save, Spend & Share Jars?

Using Save, Spend & Share Jars has many advantages. These include having a clear and structured budget, being able to track your spending and saving habits, and being more intentional with your money. Using these jars can help you save money and reach your financial goals.

Can I customize my Save, Spend & Share Jar categories?

Yes, you can customize your jar categories to fit your personal financial goals and priorities. For example, instead of having a Share Jar, you may choose to have a Giving Jar where you save money to donate to causes you care about. You can also adjust the percentages allocated to each jar based on your income and spending habits.

How do Save, Spend & Share Jars help with budgeting?

Save, Spend & Share Jars can help with budgeting by providing a clear structure for your spending and saving. By dividing your income into specific categories, you can keep track of where your money is going and make adjustments to your budget as needed. These jars can also help you resist impulsive purchases and prioritize your spending.

Are there any drawbacks to using Save, Spend & Share Jars?

The Save, Spend & Share Jars method can help many people budget, but it might not be suitable for everyone. Some may find it difficult to stick to the designated percentages for each jar or may struggle to categorize their expenses. It’s important to find a budgeting method that works best for you and your financial goals.