I’ve been trying really hard to write a post on Planning to Save every Thursday for you.
However, I’ve begun to realize that by doing that, I’m actually ignoring my other blog, Man Seeking Purpose. I really feel like I have a lot to contribute to that blog and sometimes I feel like I’m running dry for things to write on this blog.
So, starting this week, I’m going to be switching back and forth between Man Seeking Purpose and Planning to Save every other week.
If you don’t like this plan, let me know in the comments below.
In the meantime, please consider subscribing to both blogs. It’s the best way to be notified when new posts come out, and I promise not to spam you! See you next week!
If you’re a parent, then I’m sure your kids have kindly asked you to buy them something when out shopping. When I say “kindly asked”, I mean more like they drew the attention of everyone in the store to themselves as they threw themselves to the floor and kicked and screamed.
You’re not the only one to experience that. It’s hard to tell them that the toy isn’t in the budget and that you don’t have an endless supply of cash to buy them whatever they want. You can even try telling them that if you buy that shiny new toy that it means you won’t have the money to go to Disney World.
It won’t work. They just don’t understand.
So what are you to do? It’s time to be that awful parent who makes their kids buy stuff with their own money, especially when it’s the type of stuff you expect to find under their bed a week after they take it home.
Our oldest child, 7, has gotten into making rainbow loom bracelets, rings and more. She even got the idea that she wanted to start selling them.
So when we had a garage sale about a month ago, we set up a stand for her to sell her bracelets. She set the prices (although I had to talk her down from her $10/bracelet), created a display, and made signs. It went so well that she ended up having to bring out more halfway through the sale.
Her younger sister, 4, sold bottles of water. Both of them pulled in over $10 each if I remember correctly.
The real success was that they both learned that to spend money, they have to make money. In order to make it, they have to offer something that other people are willing to pay for.
It’s one thing to tell them they have to buy things with their own money, but if they don’t see the other side of the equation then they’ll just assume that they’ll never be able to buy anything they want. Hopefully, long after the money is gone, hopefully the lessons learned will remain.
How do you teach your kids about money? What ideas have they had to make money? Was the idea yours or theirs? Let me know in the comments below. If you like this post or any others on this site, please subscribe to be notified when new posts go up.
This question came in through the survey I created recently, proof that I’m listening. The question was: Should you save when kids are first-born or postpone until other financial goals met?
Great question. I’m going to start by saying that this is just my take on the question and everyone’s situation is different.
Now that that’s out-of-the-way, let’s dig into this question. My short answer is that you should wait to start saving for your kids until your other financial goals are met, depending on what those goals are:
Pay off debt: Wait to start saving
Buy a bigger house: Start saving now
Saving for a down payment on your first house: Wait
Buy a newer car: Start
Save up an emergency fund: Wait
Save up for vacation: Start
Obviously the sooner you can start saving, the greater your funds will build up over time. However, you have to look at your other financial goals and whether finishing them will set you up to be able to save more later and help your family.
Paying off debt, saving up an emergency fund, and saving for a down payment for your first house are all things that will set you up to win later and removes risk from your family. The others things won’t.
Many of the goals that will cause you to postpone saving for your kids are short-term goals. They are ones that you can concentrate on for a period of time and then put them behind you.
For example, after you’ve saved up an emergency fund you shouldn’t need to ever go back and do that again unless an emergency comes along. However, newer cars and vacations will come around every so often and you need to be able to budget for those while accomplishing other long-term goals (such as retirement or saving for your kids).
What type of financial goals are you trying to tackle? Do you have a question about what order to tackle them in? Leave them in the comments below. If you have something else you’d like to add, leave that below as well. If you’d like to ask a question specific to your situation, use the contact form to send me something directly.
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