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.

The First Job Win

My first job was a paper route when I was 12 and it was only for one summer. Folding the papers and delivering them wasn't too bad, but having to collect the payments from the people I delivered to was horrible. Excruciating at times. Most people on my route were nice about it, whether they had the money to pay me then or not. But there were those who were just downright mean at times. Ridiculing me because they said I threw their paper in the bushes or barely on their driveway. 

A few years later when I hit 15 and a half, my true first job enfolded. I applied for and was hired to work in the produce department of a local grocery store. While my boss was a jerk most of the time, one of my co-workers warmed up to me and became a good work friend. It didn't start that way, but thankfully it ended that way throughout the three years I worked there. I had no idea what I was doing at first, but over that first summer between training and just doing the job, I learned fast. I worked a split shift -- from 6 am in the morning to 10 am, and then I'd come back at 3 pm and close the produce department at 7 pm. It was tough to get up that early, but I did it, and by the end of the second summer working there, I had enough for a down payment on my first car.

And now it's time to live that all over again with our own kids. Our oldest, Beatrice, had volunteered the past two years as a junior leader at a summer day camp for Parks and Recreation. This year was her opportunity to apply to be a paid camp counselor -- and she got the job! She was one of the best junior leaders they had the past two years, so her experience definitely paid off for her. 

She's completed her week of paid training and next is the actual camp. She'll be working about 30+ hours per week, which is a lot when you haven't worked before. Both her and her sister Bryce earn their allowance each week for the chores they do, but that's maybe a couple of hours per week, if that. 

This is different than doing weekly chores for an allowance. Real paying jobs always are. Beatrice is going to be one tired teen by the end of the summer wrangling all those campers every day, but she loves the work, and she also knows that she'll be saving some "bank". She's already making a list of what she may want to buy at the end of the summer. Not a car like I bought when I was 16 (with a co-signed loan from my mom and dad), because she's not ready to drive yet anyway. It'll be fun for her to decide either way. 

And she'll be saving money, too. We want her to contribute to her mutual funds account we set up for her and contribute to -- get her in the habit of saving (something that my wife Amy and I didn't do enough of when we were their age!). The same with Bryce (both have their own account), although Bryce doesn't have a real job yet. Bryce is picking up extra chores for more money, though, which helps for spending and saving. 

It's the first job win for Bea and we couldn't be prouder. I keep telling her she's going to have to buy us all dinner at the end of the summer, but all I get is a big "no". That's all right. At least she'll be saving, too. 

It Always Burns a Hole

"Big money make a million dreams
Big money spin big deals
Big money make a mighty head
Big money spin big wheels..."

–Rush, Big Money

Because it always burns a hole in their pockets. The moolah. The cheddar. The dough. The cash so hot its molten gravity opens up the earth and speeds toward the glowing core to super-ignite and annihilate the universe.

Or, more accurately, it wants to head to a nearby store. For new toys or treats and other random crap. The girls have been earning their own money, kind of, off and on for the past year, maybe more. The Mama (what I lovingly call my wife) helped them identify something to do -- fold the clothes, unload the dishwasher, wipe off the counters, feed the bunny, unpack their backpacks, etc. I bring the air support, kind of, reminding them to do their tasks if they want to earn the designated amount of money.

The money that burns a hole in their pockets. But we have to start somewhere.

For me, it all started as a child around eight years old with a $0.25 weekly allowance. That's one quarter per week for my sister and I helping our mom around the house. Yes, it was a long, long time ago, and we did grow up with very little extra money -- just enough to barely make ends meet. But, our mom did want to instill in us a sense of responsibility and reward. And after a few weeks, that amount of money went a lot farther back then at drugstores (five and dimes) like Thrifty's and Woolworth's.

Wow, do any of these kids today even know what five and dime means? I know, right? Probably not. Our kids certainly don't. However, they do know the dollar stores, and that's a place where a dollar can still go a long, long way.

Then, with our crazy and abusive first step-dad, my sister and I got a dollar per week allowance -- but, we'd get demerits, money subtracted from our allowance if we did something wrong and/or didn't complete our chores around the house. My poor sister got the brunt of this punitive approach, sometimes ending up with a deficit that ate away at future allowances.

I'm lifetimes away from those days now, and the Mama and I haven't and won't take that approach. We're fortunate to have a little extra cash to spend on our kids than either of us had as children. And that's why we want them to learn the value of earning their own money that they can spend on whatever they want. Within reason.

Which is why the Mama brought home an idea from a friend about "saving, giving and spending" money. This means that we'll have them save a portion of their allowance, give away a portion of their allowance to help others, and to then spend a portion of their allowance -- the part they're most excited about, of course. We've been talking about establishing a more regular allowance for both girls based on completing weekly tasks, at least one to two tasks each per week (I want two, but the Mama says let's get them consistent on one first). And then they could earn extra if they did even more, beyond the allowance task/s and the everyday things they have to do anyway, something the Mama and I didn't exactly agree on (another story for another time), but have worked through.

Now each week they'll get six dollars each week (I know, right?) for allowance for completing their tasks/chores/whatever you want to call them. And each week they have to put at least $1 in each of the "save" and "give" envelopes we've designated for them, and then the balance can go into the "spend" envelope, which they can use at the dollar store, or for bigger ticket items when we go to Disneyland over Christmas.

It's funny, because our oldest, Beatrice, just watched a commercial about Universal Studios and celebrating the holidays at Harry Potter World. I said we'd go there someday, even if she didn't care for Harry Potter (I know, right?).

"But I do want to go," she said. "Let's go there."

"No, we'll go there someday," I said. "But we're going to Disneyland again this year. It costs a lot of money to go to these parks. Guess how much it costs just for our Disneyland tickets."

"Um...a million dollars," Beatrice said, amused with herself.

"No, not quite. Try again."

"Twenty-thousand dollars."

"Nope."

"Twelve thousand dollars."

"Nope. Not that much. Goodness, we wouldn't even go once for that much."

"I don't know then."

"One thousand and five hundred dollars for all four tickets. So you better start saving."

"I'm already saving for the girl Stitch stuffed animal at Disneyland. You have to pay for the rest."

Of course we do. I know, right?

Because it always burns a hole in our pockets. A really big friggin' hole. And we're grateful we can afford the hole. For now, at least. Which is why we also do our best to practice what we preach, with the saving and the giving, especially coming back from the brink of oblivion during the great recession, still not so long ago, like so many others have done.

Yes, it always burns a hole, this fragility of finance, and yet the economy is humming again. For now, at least. Teaching our children financial responsibility is serious business.

"Big money got a heavy hand
Big money take control
Big money got a mean streak
Big money got no soul..."