Teach kids how to manage money

In Wednesday's Dollars and Sense Derica, Williams tells you about some new technology that teaches kids how to save. Children are learning the basics of budgeting with the help of the interactive online allowance tracker, threejars.com

Children learn to manage their "money” through saving, spending, and charitable giving.

Here’s how it works:

• Mom and dad are the bank
• Kids earn allowance as IOU's
• IOU’s are tracked through online jars
• At sign-up, you'll set an amount, payday, and decide how allowance IOU's will be divvyed-up between your child's three jars.
• Every payday, IOU’s will be credited to your child's jars unless you alter the payment.

Each child has their own three jars website where they learn to use their IOU’s wisely, and send you online requests which you can approve or deny with just a click. If approved, hand your child cash or have your credit card charged. Your child's IOU's balance is automatically reduced.

There are a couple of other online kid-friendly money management tools similar to threejars, like zefty and familymint . These web sites let kids take the driver's seat and it’s fun for them because the site programs look and feels like a video game.

Teaching your kids how to save money early in life can really affect how they handle their finances as they grow older.