What should I do if my kid receives a large cash gift?
The three jar system still applies. Frazier recommends a script like, “This is a lot of money, so I want you to make sure that you’re putting some of this in your save jar, some of this in your share jar … I think that maybe a good rule of thumb would be 10% into the share and the save, but what do you think?”
“No matter how much they get, as long as they’re putting some in the save and some into share, you’re still teaching them that every time you get money you put some away, even if they don’t totally get it when they’re younger, which they won’t,” Frazier says. “You’re developing that habit. So that first paycheck they get, it’s just automatic. Oh yeah, I put some towards save. And oh yeah, I do need to donate a little bit of this. Just building that habit and that’s what we care most about.”
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