Moonjar Brings Spending Back to Earth

By Danielle Belopotosky, Columbia News Services

Updated piggy bank gets whole family talking about money management
Jenny Omerika saved $400 in the past six months, not a small feat for a girl who earns only a buck or two a day. The 10-year-old from Seattle, Wash., is saving for her future. While law school is still more than a decade away, it's never too early to learn about the value of money.

Jenny puts her money into a Moonjar, a hexagonal cardboard box that is divided into three sections: save, spend and share. Modeled after the family budget, the Moonjar is a tool that enables parents to introduce money to their children.

It's a way to teach the "concept of financial principles -- explaining how allowance works," said Eulalie Scandiuzzi, founder of Moonjar. The visual learning tool is geared toward children from 5 to 13 years old.

Parents learn, too

Scandiuzzi came up with the Moonjar idea after working in a middle school and as a director of a family foundation. After seeing too many adults mismanage their money, she combined her experience to come up with a simple way to address fiscal responsibility to a young audience.

"There is a miscommunication, or a gap," she says of discussions in families about money. "I think it is a taboo subject."

In a 1999 Youth & Money survey of high school students, 94 percent of students say they use their parents as a source of financial information, but only 31 percent say their parents rarely or ever discuss saving or investing -- a disconnect that Scandiuzzi wants to confront.

Starting early, she says, will get kids in the habit. She says that by the time one goes to college and doesn't know these principles, it could be too late. Parents learn from the Moonjar concept as well, she says. "I've had parents say, 'Oh my goodness, this has helped me so much,'" said Scandiuzzi, who hopes it will become "an ageless tool."

She recommends that parents discuss where money comes from such as allowance, gifts, and other sources. Then set goals, she says, and have the children prioritize what they want to save for, what they want spend their money on, and finally, with whom they want to share.

She added that children should make a list of five things in each category -- it can be a short-term and a long-term goal, or both. And remember that children often change their minds, she said. She suggests 20 percent of income go toward savings and 2 to 5 percent toward sharing.

Banks adopt idea

Some credit unions and banks are using the Moonjar as a promotional and an educational tool as well. The Boeing Employee Credit Union in Seattle recently gave them to children who opened a savings account.

"Financial planning is a smart thing to do," said Randy Rubattino, the E-Learning manager at the credit union. "It's very important, even when dealing with less than $5 or $10 -- even with dimes and quarters."

He said that teaching a 40-year-old about retirement is as equally important as teaching a 4-year-old, dealing with pennies, about money. "The credit union philosophy is to educate our membership," said Rubattino.

The credit union also has high school programs, where bankers talk to teenagers about credit and credit cards as well as building credit, how to manage checking accounts and debit cards. Rubattino said officials talk to the students about the long-term effects of bouncing checks and insufficient funds on future purchases.

"The Moonjar is about understanding and being aware of money," he said. "The next step is being financially responsible."

A Moonjar can be purchased for $6.95,in bookstores and on the Web site, www.moonjar.com, which lists local retailers.

Scandiuzzi said her goal is to get children into the habit of saving.

Jenny's mother couldn't be more pleased. Anita said that her son, Omar, and Jenny have to do something good to earn their allowances. They come home after school and clean their rooms, do the dishes and clean out the bird cage. Jenny and Omar combined their spending money to buy a cockatiel, named Perry, and a bird cage.

"They learn how to make money," said Anita. "And that money just doesn't come to you."
Another important principle of the Moonjar is to share. "Sharing is so much a part of my philosophy," Scandiuzzi said. "Share time, money, whatever with our community. It doesn't need to be a big amount. People think that 'when I am wealthy, then I'll share.'"

For Jenny, it's about the sharing. "I thought about other kids, the homeless. I thought about how it would be for them," she said. "I just think that 'God, they are so homeless.' I am so happy for what I got."