Page 14 - marCH 2 , 2017 - martensville messenger
You earn , you pay , you buy , you save , you share . Or do you ? Why is spending so easy for some while saving and sharing are so difficult ?
If we look at the basic nature of people , from infancy on , it is about getting needs met . No one ever had to teach a child to be greedy or demanding . Granted , some children are less demanding than others , but generally it is feed me , change me , hold me , give me , cuddle me , rock me , get me out of this crib . And we oblige , of course — until they are able to meet those needs themselves .
What child ever demands that you teach them to share ? That is generally a learned behavior . Most parents teach their children to share toys , attention , TV show choices and who sits in the front seat , but most parents , unfortunately , do not instruct their children in sharing finances .
When youth start shopping for themselves , they have usually been mentored in looking for sale prices , checking quality of clothing , selecting appropriate styles and sticking to a predetermined amount of spending money . But who mentored them in saving a portion of their allowance or income ?
If possible , children at even three or four years of age should be given a weekly allowance commensurate with their age ; for example , half their age in dollars . The allowance could depend on their completing household responsibilities : daily pickup of toys , all clothes off the floor , feeding the pet .
It ’ s a no-brainer : Children can ’ t learn to handle money responsibly if they have no money to handle . Dispensing even pennies or nickels can help them develop the habit of spending , saving and sharing .
There are products on the market already labeled with those three categories ; or you can get three equalsized jars and label them yourself . The goal is to get your children in the habit of delayed gratification ( saving ), living within their means ( spending ) and compassion for others ( sharing ).
Some parents have the kids divide the money equally among the jars ; others use the 80 / 10 / 10 ratio or 50 / 20 / 30 . As their instructor , you can discuss the amount that goes into each category .
Too many college students are in debt ( credit card and educational loans ) because they are not disciplined in saving , spending and sharing . As the responsible parent , take the time to instruct them early — and if you have yet to become disciplined in this basic financial practice , it ’ s not too late for you to label some jars for you too . It ’ s called budgeting .
The idea ...
of preparing a budget finally makes sense . You have watched money go out at a rate faster than it is coming in . Something has to change . You must take control of those dollars and cents .
Taking the process seriously , you are now ready to face some facts . Sure it might hurt , but sometimes truth does hurt .
You have mismanaged money . Many people do ; in fact , most people do . Yes , individuals carelessly spend , families do , governments do too . Have you noticed the national debt lately ? That didn ’ t skyrocket because of wise money management . You are in good company .
But you don ’ t have to stay in their corner . There are expenses nearly everyone must pay : housing , utilities , food , miscellaneous , transportation , clothing , medical , personal , insurance . And there are optional expenses : giving , phone , education , entertainment , vacation , retirement account , child support , alimony , savings . And if all of this sounds terribly overwhelming , add psychiatric counseling to the options category .
Life was a bit easier when Dad and / or Mom paid the expenses and your needs were met . Maybe your clothes weren ’ t as stylish as your classmates ’, but you had clothes . Maybe your lunch was jelly sandwiches while theirs were bought prepackaged from the refrigerated section ; you were fed . The car started and you arrived safely — three blocks from your destination so no one saw the dents , rust and hanging side mirrors . But you didn ’ t have to walk far .
You determined that you and your kids weren ’ t going to live the way you did , so you now buy name-brand clothes , your car is less than five years old , your home is in an upscale neighborhood , you eat lunches in restaurants with your coworkers .
And you ’ re in debt up to your ears . Welcome to the world of foolish spenders .
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