Spending Wisely

Spending Wisely

"Too many people spend money they haven't earned to buy things they don't want to impress people they don't like." (Will Rogers)

I think that here in the US, it is very easy to fall into the trap of living on credit. The power of plastic is undeniable. Personally, I did not have a credit card until I started working. Even then, I made sure to pay the full balance each time. This is something that DH and I continue to do until now. We're not "ideal" customers for banks and credit card companies because they do not earn interest from our use of credit card. In fact, they even end up paying us for using their credit card. We use a cash back program that gives us cash return at the end of the year for a percentage of the purchases we have made.

My husband and I feel strongly that we have to teach our kids financial responsibility. We don't usually give our kids an allowance. We don't pay them for chores around the house. Chores is something we all need to do. Being part of the household means taking part in the fun times and the not so fun times. If mom and dad don't get paid to clean the house, then the kids shouldn't expect to get paid either. Anyway, re: allowance, there really hasn't been any need to give any of our children an allowance. However, we felt that it was time now to start teaching our eldest son to be responsible with money. He now has a weekly allowance. It's a small amount, almost just a token amount but I told him that he needs to set aside some amount as tithe, another for savings and the rest he is free to spend as he wishes. I've also given him simple ledger paper where he can keep track of the money he has received and the money he has spent. It's only been 4 weeks but I think he's getting the hang of it.

I'm really hoping that by doing this, good habits will form early on. When he starts to work, I want him to instinctively set aside money for the church and for savings. I don't want him or any of our children to grow up and fall into debt that they can't get out of. I want to teach them to make wise choices in their spending habits. I've heard of young people who have had to get car title loans Nebraska offers with APRs that are like 300%. It sounds so ridiculous but when you need the money, you grab at whatever is dangled in front of you. I hope that my children will never find themselves in such circumstances.

This is a life skill that I am glad I am finding time to teach my son.