How to Teach Your Kids What Life Really Costs

September 8th, 2017

The other night at the dinner table, my husband made a casual comment about the cost of living and my daughter flippantly said: “I’m stressed out about dealing with bills when I’m older.” Bear in mind, she is 13 and can be a bit over-dramatic, so when she says “stressed” she really means that she can’t fully wrap her head around the idea! It opened up a great conversation and my husband and I started listing off some of the costs associated with having a car, renting an apartment, getting a driver’s licence and more.

We explained to her and her 10-year-old brother that they will progress into these things slowly, when they are ready, and it won’t seem as daunting when they are prepared. Talking about money with your kids is a great start, but what other ways can we demonstrate what life really costs and prepare them for the future?

Start Financial Literacy Early

Begin when they are young by playing games like pretend grocery shopping and use fake food and money, plus a toy cash register or calculator. Work up to playing board games that help kids to understand money management and the value of a dollar – consider Monopoly, The Allowance Game and The Game of Life. Take them shopping with you and point out prices of items and special sales. It’s okay to tell your kids if you can’t afford certain things and it’s the perfect opportunity to teach them about saving and budgeting.

Pre-teens and teens can make a real household budget with you for one month. There are tons of free templates online to use. Fill-out the worksheet with your income and all of your fixed expenses (insurance, car payments, property taxes, etc.) and have kids look at your disposable income to determine what will be needed to cover groceries, clothing, entertainment, subscriptions and the like. Once everything is divvied up, check in with your children daily to see how the budget is looking. If they want to do a family activity and there’s no money left in entertainment, have them decide where they will take the money from and if it’s even possible to do the activity that month. Sit back and watch the brain connections happen!

Foster Financial Independence

Take your tween/pre-teen child to the bank and open a savings account in his or her own name. Many banks offer a youth savings account with no fees and provide kids with their very own bank card. My children love using the bank machine to deposit cheques and print receipts out, and they can also visit the teller to make transactions and go online to watch their account grow (or shrink!)

Encourage kids to be industrious by helping them to set-up a lemonade stand or car wash, but take it a little further by telling them they must pay you for the supplies they use (cups, drinks, soap, etc.) with their earnings. This is a great way to teach them the true value of work and the meaning of a business agreement. Encourage older kids and teens to look for work and other means of generating income outside the home such as babysitting, dog walking, snow shovelling, and more. Kids get a great feeling of accomplishment by taking on a project or part-time job and making some extra cash.

Establish a habit for saving and giving money from an early age. Whether children receive an allowance or not, set up three jars labelled spend, save and give. Have kids choose a percentage of money they receive from allowances, gifts and special chores to go into each jar and at the end of an agreed upon time, let them decide on where to donate the money from their “give” jars, perhaps to a local animal shelter or environmental initiative? Charitable children have the added bonus of learning that there are more important things than material possessions, and that giving really does feel as nice as receiving.

Technology Leaves Baby Boomers’ Groovy Talents Behind

September 8th, 2017

As a teen, I could play a mean game of pong. My handwriting was absolutely gorgeous and I wrote the best letters. I drove my Pinto with a stick shift like a pro. No one was faster at shorthand than me in high school.

I perfected licking stamps without swallowing them, surviving while riding a bike without a helmet, providing loving care for my pet rock, and finding a book at the library using a card catalog and the decimal system.

Cradling a phone for hours in the crook of my neck while I talked to friends? No problem. I created beautiful photo albums that included funny sayings I carefully cut out of magazines. I used a Polaroid camera, picked the right film, and reduced exposure time like an expert.

Forget Quicken, spellcheck, and a calculator. I balanced a checkbook beautifully in minutes, my spelling was impeccable, and I made change from cash in my head.

Alas, all these talents have gone to waste. Technology has sadly left me in the dust.

I’m not alone in grieving discarded past skills no longer needed. In Michael’s Kaplan’s article, Technology is Making Baby Boomers Total Losers published in the New York Post, he laments the invention of Telsa cars.

“A few weeks ago, I rode in a friend’s Tesla… my pal couldn’t wait to show me the sedan’s most mind-blowing feature: It parallel parks by itself – perfectly,” Kaplan writes. “I feigned amazement, but thought something else: This is one more skill of mine that has just become obsolete. I’m a below-average driver but an awesome parallel parker… Grown men stand curbside and marvel over my bumper-to-bumper artistry.”

He goes on to list other talents we boomers had that are no longer needed such as reading a map or remembering phone numbers. Oh, I hear you, Kaplan!

Remember sewing classes in Home-Ec? I painfully learned how to make my own clothes pricking my fingers with those stupid sewing pins. And for what? Suddenly, it became cheaper to buy clothes than make your own. Who makes dresses from patterns, mends their clothes, or sews on a button anymore?

During my first job as a secretary at a bank, I developed an uncanny skill for using carbon copies (by the way, youngsters, where do you think the initials CC comes from when you send an email – yes, from this archaic tool) without making a smudgy mess. I also used typewriter erasers without tearing the paper.

And get this – most impressive of all – I could paint precisely with whiteout to fix a typo, let it dry the exact right amount of time, and then realign the paper perfectly so the type was not too high or too low. It was genius!

All useless.

I made the cutest paper dolls from the Montgomery Ward catalog. My embroidered cutoffs and artful doodles of Snoopy on my Pee Chee folder made my schoolmates pee green with envy. I could skip a song on an album by picking up the needle and placing it at the exact spot of my favorite song without scratching the vinyl.

No one cares.

Doesn’t it make you yearn for public pay phones, grinding gears, and the sound of a dial-up modem? Adjusting rabbit ears? Cleaning the head of a VCR? Lining up paper on a dot matrix paper? Fixing an 8-track by putting Vaseline on a Q-tip to lubricate the rubber wheel? Floppy disks?

Well, maybe not. But we can still mourn for all our awesome skills that are now useless. And who knows?

Maybe you’ll be in an old Jeep driving alongside a cliff when the driver has a heart attack. Yeah, and you must jump on his lap and take over before you plunge hundreds of feet below. I mean, you just never know. Good thing you know how to drive a stick shift!

Perhaps our expired skills aren’t so useless after all!