Mind Your Own Money
Saturday, September 22, 2007 at 07:47AM Slackermommy is debratting her kids. She even created a cool button to proudly display her new family values.
Mind you, I personally think her kids are terrific, as is she. But hey, what kid can’t use a few more lessons in control, respect and discipline, right? So, she has recently given a shout out to all us moms to share our own favorite ways we attempt to keep our kids in line (and win a great tooth fairy pillow while you are at it!). Considering my daughter is only two, I am not a wealth of information when it comes to these things. I am still finding my way around the discipline trail. The best part about her being two is that I can switch gears and introduce new tactics at any time and act as if this was always how things were done here at chez Momish. She has no clue and accepts her new fate. So yeah, I too plan to devour all the sage advice flowing Slackermommy’s way.
But still, there is one thing I think I can offer. This isn’t much in the way of behavioral control, but does lend itself to self-discipline and in a way, a sort of debratting when it comes to material possessions, which is a major battle we all face. It’s about saving and BUDGETING! Because discipline goes hand in hand with giving our kids the skills they need to do things right.
When I graduated college and started a career in social work, I was dirt poor (key words there are social work). Struggling financial, I had to figure out a way to stay afloat, yet still manage to obtain the things I needed. So, I can up with a formula that helped me know how to live within my means. I plan on using this formula with Piper when the time comes and she starts to have an allowance.
The formula is simple. You can only buy things you can afford to buy twice.
If you want the $1 candy, you have to have $2 in your savings. If you want the $30 toy, you have to have $60 in your savings. If you want the $350 iPhone, you have to have $700 in your savings.
This works, believe me. My husband is constantly amazed how much I manage to save. Because with this formula, the bottom line is absolutely true. If you can afford something twice, you can afford it once and then you are living within your means.
It has other benefits too that aren’t so obvious:
- You are never penniless.
- You are never attached to an object because you poured your entire life’s savings into it. So when the cat knocks the new vase off the shelf, it’s not the end of the world. You can get another one if you so desire and you are not left with nothing.
- You make more prudent decisions. More often than not, you end up buying down. When you have to save $800 in order to get the $400 new CD player, eventually you break down and buy the $200 model the minute you have $400 in your savings. Beats waiting another six months for the more expensive one that isn’t really giving you anything extra in the end.
- You learn comparative value. Rather than buy the $100 dress, you opt for four $25 dresses.
The formula teaches kids (uhem, and adults like me) how to grasp the concept of money as well as the concept of living within your means. It helps show them just how much work it takes to acquire something. (Especially helpful in today’s age where kids think a hundred dollars is nothing for mom and dad to shell out on new sneakers.) It also teaches them to know what they can truly afford, rather than what they think they can afford.
After a while, it becomes second nature because you get use to having a savings, money on hand and watching your assets grow. I still keep to the formula for my major purchases. This year, when I figured out how much I could afford for a new car, I bought one that cost half of that. This way, I only had to shell out half my savings for the down payment and I also have the means to double my payments each month.
When I think of disciplining my kid, I sometimes forget that the goal I am reaching for is actually self-discipline. All these values and virtues I am teaching Piper are ultimately for her to self incorporate. So when she moves on in life, she’ll know how to be a good person, work hard, respect others and follow the rules. With the formula, she will hopefully know how to be make good decisions, work hard for the things she wants, live within her means and respect her own financial assets.
P.S. If you have a great discipline tactic, head over to Slackerymommy’s to join the contest!
The Kid
Reader Comments (13)
I LOVE that idea! We are just getting to the stage with PunditGirl where she is understanding money, but not the concept of earning and saving it.
what a great idea, Lori. just yesterday we were talking about how to teach M how to value money. this is terrific.
Wow. Money managing. At age 2 my less than lofty kid discipline goals involved staying close by in public and helping me clean up toys.
fabulous idea.......... momish for president!!!
I love that idea! I need to follow it for myself.Someone recently shared with me that they have their kids put 10% of their allowance away for charity and another 10% in savings.They are never too young to learn!
Okay seriously? You are brilliant. That's one hell of a great idea, budgeting in that way.
This is a great idea! It also means that you have to know how much money you do have....which is always a good thing.
That is FABULOUS advice! For pretty much anyone. I guess I've done that unconsciously for a long time, but I've never thought about what "formula" is best. I'm totally going to rip this one off to use on my kids. Thanks!
What awesome advice. I wish I had had that advice early than now--at age 36...I will teach it to my children.
When we were dirt poor, I used a similar tactic. When I wanted a washer (and eventually, dryer), I set aside the amount of money I used for the laundromat every time I did the wash. I had that washer sooner than I'd planned, showing me how much I was wasting on the laundromat machines.
that's excellent, but what about credit cards?
Love, love, love this idea! Financial savviness and I haven't been the best of friends growing up.....so I would love my children to avoid the same pitfalls I faced in my younger days!
I read this about a week ago and thought I had commented. It is such a great idea. I like the way you link the practice to instilling self-discipline.