How The Four Quarter Method Works
Beginning at age five or six, give your child 4 quarters every week. This money is not for work or chores performed around the house as this method is a teaching tool, not pay for expected chores. Go out and buy two piggy banks or small lock boxes for each child. Mark one as “short-term savings” and the other as “long-term savings.” At the start of each week, have your child bring out their banks and help them understand how money should be divided up. This constant reminder will provide many opportunities to teach the importance of Biblical priorities and responsibility with money. Every year, increase the amount of money your child is responsible for managing, and once they start to earn their own money, this system will hopefully have them well on their way to Biblical financial wisdom.
Quarter One: Giving
Whether your child is giving to your church or a worthy charity, you are teaching the principles of priority and generosity within a Biblical framework!
Quarter Two: Short-term Savings
This second quarter is for gifts, youth activities or upcoming events the child might want to attend or participate in.
Quarter Three: Long-term Savings
This is for college, a car, or even marriage expenses. At young ages, kids may not understand all these future costs, but we are teaching children to never mix short and long-term savings.
Quarter Four: Discretionary Spending
Many young children cannot even say the word! This money can be spent, saved or given away. We are trying to establish the concept of sequential priorities and order with money.