When we first started learning to manage money, we had three envelopes — one for savings, one for spending and one for giving. The savings envelope was for long-term savings — I give J a monthly statement and interest (more on this later). What I didn’t account for, however, was short-term savings — things that he wanted to buy but didn’t immediately have enough money. He’d have to save up.
It was October at the time, and with Christmas coming, we thought it would be perfect to save for Christmas presents.
- We got a new envelope
- We made a list of everyone he wanted to buy for, approximately how much he wanted to spend on each person and added to get a total needed
- We then decided on when he’d like to save the money by (two weeks before Christmas) so that we had time to shop and wrap the presents
- From there we could calculate how much he had to save per period to meet his goal
In addition to the register, I made a small worksheet that we filled out with the above info.