THE CONTAINER METHOD

The container method is great for small children between the ages of three and ten years old. It's a super way to teach kids important money habits and show them how to be in control of their own money.

Young children have a really short attention span. It's hard to teach them about creating wealth verbally, but if you make it so that it's something they can do physically, they'll have no problem creating money saving habits that will last a lifetime.

Even as young as three years old, children can learn the concept of saving money. Here's a suggestion that has worked for us:

The dollar store carries a variety of plastic containers. You'll need to invest in three of these that can hold change. If you can find three plastic piggy banks, that would even be better (I bought three small, bright pink plastic ones that had happy faces on them for my kids).

On each of these containers, you'll need to draw or glue on a picture. Also, you'll need to write out one word with a black permanent marker.

The first container or piggy bank will have the word BUY on it, and a picture of what the child would like to buy from a store. For example, a new Tonka truck, a new bike, a video game, a doll etc., Above the picture, write the word in capital letters (TRUCK, BIKE, GAME, DOLL etc.,)

The second one will have the word SAVE on it. Underneath the word, you can glue on a picture of anything you'd like. I drove by our local bank and took a picture of the outside, had it developed, and then glued the picture to the piggy bank.

This will be the money they'll take to the bank and deposit in their own account once a month (you'll need to open up an account for them under your name). They'll have their own little bank book to take to the teller along with their money. Explain that the bank will give them their money back and more when they're all grown up. This is so huge for kids!

Don't do all the talking and depositing for them. Let them give the money to the teller and have them ask the teller to save their money for them until they're big. This is their first step towards saving for their future.

The third container will have the word GIVE on it. Talk to your child and, for example, explain to them that there's a little boy or girl in your town that needs to eat so they don't go hungry, or needs a winter coat so they don't get cold, or needs a backpack so they can go to school.

You'll know as a parent what will really hit a chord with your own child. When your child is really little, it could even be a teddy bear or a toy car that they save up for and then give to another child less fortunate.

Draw or cut out a picture that coincides with what the child wants to give. Giving to charity is awesome, but when kids are little, it's important that they see what and who they're giving to.

Set the three piggy banks up in the child's bedroom, maybe on top of their dresser or desk. Pick a day of the week where you will give your child money that they will deposit into each of their containers.

If, for example, you've decided to give your child a dollar for each container, hand them the first dollar and ask them which one they're putting it in first, and ask them to tell you why they're putting it in there. After they tell you, watch them run to that container and put it in. Have them come back to you and hand them the next dollar and repeat the process another two times.

If you do this every week, it becomes a habit for children to put money away for a reason, not just because they "need" to.

Wealth creation habits are now in the making and they've even started their very own nest egg!

You can use this method from the age of three right up to ten years old. It's easy, fun and teaches great wealth creation habits.

As parents, we just need to do our part and make sure we maintain the routine. Our lives are very hectic and sometimes it's hard to remember things.

What works for me is taking fifteen minutes out of my life at the beginning of each year to write two letters - "PB" (short for piggy bank) under every Friday of the year in my new daily planner. Yes... I write "PB" out 52 times.

I also write the word "bank" under the last Friday of every month so we don't forget to deposit the savings and update the bank book.

You might want to try this out for yourself too, as this method works fantastically for adults as well!

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