ThreeJars.com Review – Money Management for Kids

Oct.10, 2009 in Online Reviews, Parenting

Growing up in an 8 member family, my parents had to be extremely frugal with their money.  The clothes I wore in school were worn by my two older sisters before me.  My parents did a great job stretching the dollar, but never sat down with us to teach us about Money Management.  By the time I had my own full time job, I went a little spend crazy.  I made a lot of careless mistakes that I am still paying for today because  I wanted all the stuff I couldn’t get growing up.  I learned about Money Management the hard way.

Especially in today’s financial challenges, its more important than ever to raise a financially responsible child.  I realize that though I cannot prevent my sons from making some mistakes, I can help teach them the tools and skills necessary to avoid the big ones.

Being responsible with money means to live within one’s means: More money has to come in than go out. It seems simple, but it only sticks when it is personally experienced.

My kids have their piggy banks but I know that’s not enough.  Banks are even adjusting to this new demand by encouraging parents to open up Bank accounts for their kids.  I see the ads everywhere.   The problem with bank accounts is that the money goes in but children don’t get the opportunity to really make any decisions.

18?24 year?olds represent the fastest growing age group filing for personal bankruptcy.

That statistic alarmed me when I first read it.  It really imprinted in my mind, the important role I had as a parent in helping my sons become financially responsible.

That’s why I’m happy ThreeJars.com exists.

ThreeJars has been specifically designed to maximize your child’s learning about money.  What I really like about ThreeJars is how it empowers kids to make smart decisions with money.  Experience is really the best way to learn and this online tool helps kids learn the safe way.

How it works:

*ThreeJars is not a bank.  They do not hold the money but merely track how much kids have earned through their online tools.

SAVE

I thought this was so cool.  Here is where kids can learn about high-yield interest accounts, bonds, certificate of deposits and more.  Teaching kids how their money can work for them is a great way to reinforce positive money habits.  What I really enjoyed was how the longer kids leave their money in, the more interest they earn.  An early withdrawal means no interest, just like real life.

If your kids need to make a little extra money, they can choose extra projects to perform and set the requested amount they wish to make.  Of course, it always has to be approved by the Parent first.

Jeffrey has a hard time understanding the value of money.  He’s only 4 but its never too early to learn.  With ThreeJars’ money management system, kids could set up a savings goal for something that they wish to buy.  If you have a child who has a “buy me” now attitude, this might help them understand how to control their instant gratification desires.

SPEND

Here is where kids can ask for either a cash withdrawal or for a gift card from a wide variety of stores.  If the parent approves, they either pay their child with cash or buy a gift card online.

SHARE

Where you child learns to share and makes donation requests.  I thought this tool was an amazing way to increase awareness and the importance of giving back.

I think the BEST part of this online money management tool are the conversations I know it will spark with my children.  I truly believe it will be a big help in creating ownership, accountability and financial responsibility in my children.

I was given a free trial access to this service for conducting this review.