kids

Just say no

Now, Just Say No

Money Maroon

When was the last time that you suck it up and just say no to your children? As we move toward the next year, again we enter the season of spending. One of the major driving force behind the excessive spending during this time of the year is the effort to please our children. However, spending money that you do not have not only hurts you, it also hurts your children. By saying no and living within your needs, you will be teaching your children delayed gratification, self control and impact their future for the better.

Saying One Thing And Doing Another

It is always amazing how the same folks who announce that they do not have the funds typically have the latest and greatest. It is amazing how the co-worker who is struggling financially has the required funds to take a vacation. It is also interesting how not only do they have the latest toys and gadgets, but so do their children. Where are they getting it from? 

Let us not speculate. However, it does offer an interesting view into other people’s habits. This is not new, the act of saying one thing, yet doing another. With this in mind, why are we surprise when our children act in a similar manner?

Just Say No To Your Children

It is always difficult to tell our children no. It is difficult for us to punish them. However, at a certain point we must perform our roles as parents for their growth and development. Just as you work with your children with their school work, teaching them how to play a sport or how to be a contributing part of society, so must we say no when it is required.  Financial literacy should be apart of their development.

In the holiday season, just say no. Whenever you are asked to spend what you do not have, just say no. We understand that this is easy to say but difficult to do. This is especially the case when your children have friends who are receiving the new and latest toys. In some cases we satisfy our children’s wants to prevent a tantrum or a melt down. For many parents, it is also a matter of ensuring that their children fit in socially. However, if we are teaching our children to have what others have no matter the cost, financially and otherwise, are we really doing them a service?

If our children’s friends have the newest and most expensive phones or other electronic devices, should your children also have those items? If you cannot afford it, you must have a conversation with your children. It may be the most opportune time to discuss money and how money works.

saying no
saying no

Think Long Term

If we are purchasing material items that we cannot afford, we are not only putting our financial future in jeopardy. Our acts are also putting our children’s financial future in jeopardy as well. We are essentially teaching our children that they can purchase things that they cannot afford.  Do not be surprise by our children’s decision to put things on credit and overspend in the future. Note that our children are watching. Our children model their behaviors after what they see and hear. Believe it our not, we can have a huge influence on their future spending habits. Consider the current state of finance today, it is no wonder we have so many finically illiterate folks. 

Let us make our children’s financial literacy apart of what we are teaching. Let us act as parents. Like with school and so many other tasks, we are the parent and not your children’s friend. Let us aim to try and find a way to teach them such that they can in the future be better than we are. Let us give them the tools to make better decisions.

Conclusion

When was the last time that you suck it up and just say no to your children? As we move toward another year, again we enter the season of spending. One of the major driving force behind the excessive spending during this time of the year is the effort to please our children. However, spending money that you do not have not only hurts you, it also hurts your children. By saying no and living within your needs, you will be teaching your children delayed gratification, self control and impact their future for the better.

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Back to school

Back To School And On The Money

Money Maroon

It is that amazing time of the year again. Each year, we all enter this phase of transition from summer to fall. As the leaves change, so does our routine. Here comes the back to school rush. Throughout the country, the months of August and September play a seminal role in getting the school year started. With this transition comes the expenses of new school gear and traditional school supplies. Do not forget about the disruption to your typical schedule and the added traffic of school buses and frantic parents trying to get their children to school. Yes, back to school here we come. But do not allow the new school year to affect your financial goals.

Back to school
Keep your eyes on your financial goals

The Relief And Stress Of Back To School

For parents, it is that time of the year where life becomes less stressful in some respects, and more stressful in others. In one aspect, the kids are out of the house (covid permitting) and you know where they are. They are being housed in a school for at least about 7hrs. The kids are also being kept on the education treadmill of learning and developing new social skills. 

On the stressful side of back to school are the expenses of extracurricular activities and the friends that that your child will make and who will have influence over time on their lives while you are not there. For their friends, you as a parent has to establish your home, what is expected of your children and that should guide them. On the expense side, it is also your choice.

The expense associated with your child’s activities is a choice that you are making. You are the parent, it is not your child’s choice, it is yours. If you sign your child up for an expensive sport, do not complain, it is your choice. If you have to leave work early to attend an event, again, it is your choice. When you are making a decision to live within your means, save, invest and grow financially, your kids are apart of your house and how you allocate funds on their behave will significantly influence if you will achieve your financial goals.

Just Starting Out

From kindergarten to 12th grade, you as the parent are generally financially responsible. After that point, the guide rails are gradually taken off. For those with kids going into kindergarten, on a financial level it may be your first introduction to the early school supplies which at this point may include clothes, shoes, and electronics. But for many on the financial front, this is a blessing. Gone are the days of paying for private pre K which can cost more than $20,000 per year. Now you may have public schools to contend with that are free if you are not continuing with private education.

This is not the time to find a place to spend the funds that you had previously used for pre-k. Now is the time to find new investment opportunities, save and build wealth. This can be in the form of investing in the stock market, saving to fully fund your emergency fund or continuing to use the money for your child by having a 529 plan or something similar. Now is the time to save, because if your child pursue higher education, you will pay one way or the other.

If you are continuing with private education, then you will be spending more as you move from pre K to kindergarten. It is not uncommon for such cost to come close to or above $30,000 per year. If you have made the decision to enter private school, it is a choice that while expensive it is one that can be beneficial to your child based on where you are located. However, be mindful of the expense as it accumulates over years.

Returning To School

If you have a child who is returning to school, they will likely be thrilled. Thrilled because they are heading back to school after spending the summer with you. Now they get to jump back into the routine and to see their friends. By going back to school, they are essentially returning back to their lives. For children in this category, back to school is something that they have been looking forward to all summer.

But even for you, it is important to keep an eye on the expenses. Again, if your child is returning to private school, ensure that the expense fits within your plan. If your child is returning to public school, be mindful of the environment and opportunities that they are returning to. Whether public or private, pay particular attention to the extracurricular activities that your child will be involved with and the related cost. You want a developed adult at the end of the journey, but not a situation that will put you in financial difficulties for the future.

What ever the situation that you find yourself in this year, do not allow this transition back to school to take you off your financial path. If financial independence is your goal, maintain this goal and live below your means, save, invest and repeat.

Conclusion

It is that amazing time of the year again. Each year, we all enter this phase of transition from summer to fall. As the leaves change, so does our routine. Here comes the back to school rush. Throughout the country, the months of August and September play a seminal role in getting the school year started. With this transition comes the expenses of new school gear and traditional school supplies. Do not forget about the disruption to your typical schedule and the added traffic of school buses and frantic parents trying to get their children to school. Yes, back to school here we come. But do not allow the new school year to affect your financial goals.

Follow me on Twitter @JoToFI_com

Follow me on Instagram @JoToFI_com