Barefoot Investor Scott Pape’s holiday challenge for kids: How to start saving money

Welcome back to the Barefoot Kids School Holiday Challenge! Last week I showed you how to pick out a couple of pocket-money jobs that you can do each week — and you should’ve done them!

Plus, you’ll hopefully have wowed your parents by helping out around the house with some Parent Pleasers and, hopefully, are ready to have your very first pay day!

After this week you’ll never have to nag mum or dad about buying you stuff. That’s right, when you’re done with this challenge you’ll have your own cash! Are you ready?

Then let’s rummage through the kitchen cupboards because you’re going to need some jam jars.

Stash your cash

Imagine having your very own treasure chest, with loads of gold coins spilling out the top. That’s what this step is all about. See, you’ve already done the hard work of thinking up three jobs you can do around the house, so now it’s time for the really fun stuff: watching the money hit your hot little hand! That’s what payday is all about.

When you get paid, you’re going to divide your money into three money buckets, see right. Here’s how it works. Each payday you’re going to put some money into each of these three money buckets.

Question & Answers

  • Who gets to decide what jobs I do? You get to suggest the jobs, your parents get to decide (they’re the ones paying, after all!).
  • But I already do this using jam jars! That’s great! You’re at the head of the class. Go eat some jam.
  • What about buying stuff online? How does that work? That’s up to your parents. The easiest option is to give them some money out of your SPLURGE bucket, and they’ll buy it using their account.
  • Should my parents pay cash or via a bank account? It’s totally up to them. Both work. In fact, there are some special accounts just for kids that they might want to check out. The most important thing…

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