How a Financial Portfolio Can Help Kids
The Bible says in Proverbs 27:23 “Be diligent to know the state of your flocks, And attend to your herds;
The first step to digging myself out of debt I got into in college was to assess my situation. I made a list of who I owed money to and how much. I wrote down what I was making at both my jobs. I outlined my goals.
Names and numbers on paper create a clear picture of finances.
It was then that I was able to put together a budget to tithe, pay my bills, get out of debt and live on what was left. Slow but steady I worked the plan and now I am debt free.
My kids don’t have any debt, but by keeping an eye on how much they made, how much they spent, and how much they saved, I knew they could be successful in handling money. So, I helped them create a financial portfolio to track these things.
The notebook contains:
- Give_Save_Spend pie chart to remind them how to allocate the money they receive
- Recent savings account statements from the bank
- Spending Ledger
- Gift card ledger
- Short Term Savings thermometer
- Pictures or notes for the things they are saving for
- Envelope to keep money being saved
- A list of future expenditures
- My Gifts Resume - to remind them of all the things that are theirs to steward.
When the kids are considering financial choices this is the place they go.
It’s here that they can get the answers to the questions:
- How much should I give?
- How much should I save?
- How much do I have to spend?
- What am I saving for?
- Can I afford to purchase X?
- If I purchase X how long will it take me to save for Y?
- What’s coming up next week (party, outing with friends, vacation, etc.) that I will need/want to spend money on?
Updating this notebook on a regular basis kids to “Be diligent to know the state of their flocks”. They will be able to make wise financial choices.
This post is a part of a 31 Day Series on Kids & Money.
Yesterday's Post: Day 15- Tracking Your Spending