Debunked Part II: “My kids wouldn’t appreciate it”.
In part of changing the family legacy, we have the naysayers that believe giving to a child is the wrong thing to do because they haven’t worked for it like you did and won’t appreciate it. In a sense, that may be true but what about those that are already doing it?
Is it that hard to raise a child to be responsible so that they can carry on and build on the template we’ll create with out debt free financial independence?
Starting when the child can comprehend wants, we should limit them so that they aren’t used to getting their way. This instills that they either have to work for what they want or that it’s not available to them. This simple discipline is the most important element in parenting to raising a responsible child.
When I was coming up, I just had to have the new Nike, British Knights or Fila’s (at the time). I was brought up on, if you want something you have to work for it. So my mother would pay for half of anything I wanted meaning I had to come up with the other half. I accomplished everything I wanted as a child from manual labor jobs as cutting grass, chores and selling things wasn’t out of the question.
When I became of car age I was given an old burnt orange 1978 Buick Skylark (In the mid 90’s). I was basically forced to get the car as I didn’t want to get one because of the responsibility that came along with it (insurance, drivers license, etc). However, once I did get the $400 beater, I had to pay for everything to maintain it.
See the trend? I’ve had to work for everything I’ve received. My parents were well off enough that they could have paid my way or given me everything I’ve ever wanted as a child. Through hard work and determination within the lessons they were teaching I’ve become a responsible adult.
So in order to start my legacy I’m trying little subtle things to start planting the seed in my kids. Instead of playing music in the car while the 11yo is in the car. I’ll play Dave Ramsey TMM or FPU. She may not be paying much attention right now but just like kids and church or my dad with sports radio, she’ll start familiarizing herself with the message.
Next we follow Daves instructions on the compensatory allowance system. She gets $10/week (broken down into 3 parts) to clean the kitchen after the family eats dinner Monday-Friday. $4 goes to a savings account/envelope (which she can’t spend). Goes to a Give away to charity or somewhere account while the remaining $4 goes to her to spend as she chooses.
The $4 savings system is a way to start planting the SAVE SAVE SAVE seed early. It teaches discipline and lets her know that in order to get something she wants, she’s going to have to work for it.
The $2 “give away” portion is liken to taxes taken out of the check (Plus it’s nice to give). She’s already donated $12 to a local fundraising event for her school. She was really excited to give the $ too.
The $4 for her is to let her enjoy the fruits of her labor. She even spends that responsibly too while sometimes saving that portion for bigger purchases also.
I haven’t given her any speeches about debt or financial independence, because she’s too young and I want her to stay that way. But at the same time, I’m instilling valuable lessons that reach much further than any amount of talking I can get through to an 11 year old.
When I do give her the speech, I’m sure it’ll be full of “Credit Cards are the devil” cult speak.
Time changes things but at this rate, since I “can’t take it with me”, I’m building wealth and financial independence for my kids & kids kids & their kids. With the daily lessons being taught I hope they’ll hit the ground running when I pass the torch.
