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.

Financial Literacy Is Required Reading

I remember riding my bike to work at 5:40 in the morning for my new summer job. I got hired at 15 and a half to work in the produce department of a local grocery store. It was close to where we lived so the bike ride wasn't too bad. Plus, early summertime mornings growing up in Visalia, California, were quite warm, but still the coolest part of the day. I worked a split shift -- I'd work from 6:00 to 10:00 AM and then come back and work from 3:00 to 7:00 PM. Each week that summer I worked 35+ hours, ultimately saving enough for my first car. I worked part-time during school and then again nearly full-time the following summer. 

This is the second summer that our oldest Beatrice has worked nearly full-time as a camp counselor at a summer day camp. Like I did way back then, she rides a bike to work early, around 7:10 each morning, although one big difference is that she rides an electric bike. The electric bike I bought a few years ago that I thought I'd use a lot more but ultimately did not. At least Beatrice is ensuring we're getting our money's worth. She doesn't work a split shift like I did, working straight through to 3:00 PM.

Beatrice is "making bank" as the saying goes and she's saving money, not spending it all. She even has a savings CD for goodness' sake. Her mom Amy and I never did that growing up. We spent it all! Yes, I saved and bought my first car, but that was about it back then. 

Beatrice isn't buying a car anytime soon, but she is going for her driver's permit later this year. When that happens, that'll open a whole new world of car insurance calculus for us. Our insurance will go up at least 30% once she starts driving. Thankfully she's not in a rush to drive, and neither are we, at least until she starts college.

Since Beatrice has been working and making bank, Bryce wants some of that action now, too. But they're only turning 15 this year, and there aren't many jobs they can legally work at that age. The Santa Cruz Beach Boardwalk offers jobs for 14+ years old, but neither Beatrice nor Bryce have been interested in that. Bryce loves going thrifting with Amy, so that's of interested once they hit 15 and a half, to work at a thrift store. 

The adulting is here. Financial literacy and fiscal responsibility are practices we've worked to instill in both Beatrice and her sibling Bryce. It started when the bank of Mom and Dad set up payment plans for iPads they purchased, taking part of their allowance each week until the devices were paid off. Allowances that they have actual chores to do to earn. And they do them. Not without parental reminders and cajoling at times, but they get them all done. We also occasionally negotiate the current set of chores for each, which we don't have a problem doing, as long as the sets don't decrease in activities. 

Both kids have mutual fund accounts we started for them, and again, Beatrice has a savings CD. Having their own money to spend is exciting and freeing, especially for Bryce, which is why we're emphasizing savings more emphatically. Something that Mom and Dad didn't do very well at that age. We also don't want them to spend more than they have and get overextended on credit (something that I screwed up in adulting). And now that the world of work is being transformed by continuous economic upheaval, artificial intelligence, and more, financial literacy is required reading in our house.