Mindful of Their Money

"...Big money goes around the world

Big money give and take

Big money done a power of good

Big money make mistakes..."

–Rush, Big Money

Our oldest Beatrice banked another big chunk of money. This was the third summer she's worked nearly full time as a camp counselor for a summer day camp in town. She loved working with the kids, but sometimes the days felt super long working with the 7- to 10-year-olds. 

Another big chunk of money banked, though. Four years ago, we opened mutual funds accounts for both our kids and explained the importance of saving for the future, including college and/or other life expenses. We contribute to them monthly and encouraged Beatrice to contribute the majority of her summer earnings to the account. Plus, she'll continue to babysit during the school year for extra cash. Our youngest Bryce hasn't been old enough to get a job yet and will be able to soon. Babysitting will not be one of them. 😆

Both kids also receive an allowance for weekly home chores. Bryce would spend it all immediately if we didn't make them save some of it. Beatrice has been much better at saving/spending her allowance and job money. Now that she's driving, she's helping to pay for her car insurance, which doubled our monthly rate. We want her driving, but now we understand why some parents don't want their kids driving as a teenager. The cost of any kind of insurance these days is definitely a future rant post. 

Financial literacy has been a priority for us to pass on to our kids. Something we didn't get much of growing up. Our parents did the best they could with what they had, and neither family had a lot, but we do wish we learned to be more fiscally responsible at an earlier age. I saved for my first car in high school and my parents co-signed a car loan for the rest of what I owed.

Things went south financially after high school. I did pay for most of my bumpy college ride, eventually and proudly receiving my degree. But, I began to sink myself deeper into credit card debt, which exponentially became worse during my first marriage. When I met my now wife Amy, I had no choice but to file for bankruptcy. The debt spiral I was in was of my own making (and my ex's). Since then, I've rebuilt my credit and we began saving for retirement and eventually our kids' futures. 

Part of that savings is to have a few months of emergency cash just in case. Less than half of U.S. adults have emergency money saved, so we're very grateful we've been able to save, period. We've had some tough financial times in the nearly 30 years we've been together. Those weren't without fights and relationship strains either, but we've always worked together to figure out what we needed to do. 

This is why financial literacy is so important for us and our kids. Beatrice met recently with our/her financial advisor, something that was unfathomable to me when I first met Amy. He explained how her money was being invested, what her return has been, and the importance of the longer-term investment strategy. Beatrice had relevant questions that he answered clearly and succinctly. We have no idea where financial adulting will take both our kids, but if we have anything to do with it, they'll be mindful of their money.