We are learning more and more about God’s plan for our finances, and one of the biggest lessons that Dave Ramsey teaches is about using cash for certain monthly expenses to help track what you are really spending. For groceries and eating out, babysitting, and our dancing lessons, we are setting aside cash in envelopes every month, and only spending what is in the envelope.
It’s a good lesson for Prince, too, since he keeps asking for “the card” when we are in the checkout line so he can help me pay, but swiping a square of plastic through a machine doesn’t teach him much about paying for things. So it’s important to us to start teaching him about money: earning money, saving money, giving money, and spending money. His next level in his advancement toward knighthood will be when he turns five in March and starts earning money. We are going to pay him commission for jobs well done, rather than a set allowance for things that he should do anyway. When he gets his money, we are going to have four jars set up: one for saving, one for giving, one for gifts, and one for spending. We are going to pay him in amounts that split up well into four jars, like 40 cents or $1.
But before we start with the real money, I’m introducing him to the concept with play money. Melissa & Doug makes a great real-looking money set, and once I laminated the paper money, I was ready to let the kids have at it. Prince and Princess love stacking and organizing the bills, sticking the coins into their pockets, and pretending to buy their plastic food.
We are going green in our house.
