Have your child use this simple system.

Get four large jars. All the money she earns—from birthdays to allowance to babysitting—goes into the jars. Label the jars as follows:

  1. “Charity.” Have her put 10 percent of what she earns in this jar. Giving money to the needy is part of becoming a good citizen.
  2. “Quick Cash” she can spend each week on a new CD or at the movies.
  3. “Medium-Term Savings” for an expensive outfit or even a car.
  4. “Long-Term Savings” for college.

Besides helping her develop responsibility, this method can also help her resist peer

pressure. “I’d like to buy that, but my parents are making me save my money.”

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