Traditional Spending Habits
Saturday, December 15, 2007
As a child, I watched my grandfather purchase a saw when he needed one. When the garden tractor broke-down, he would buy another one. When fishing tackle went on sale, he would add to his tackle boxes. My grandfather enjoyed life and I learned to buy whatever, whenever I had the money. My parents' love taught me many truths about life, but I personally failed to learn good spending habits.
When my wife and I purchased our first home, I needed to fill to it with all the stuff that took my father and grandfather years to acquire. My spending habits caused years of servitude to debt. Unfortunately, I had to learn about bad spending habits through experience.
It is fairly common knowledge that it takes twenty one days, or twenty one times, to make something a habit[1]. The problem lies in the time it takes to realize a bad habit and the consequences of those habits. As the saying goes, "Bad habits die hard."
To protect my heirs from learning my bad habits, I must change mine. Also, I must teach them how to become good stewards of the money we are entrusted with. After they learn where money comes from (see Allowance vs Commission), then they should be taught how to handle that money. I like Dave Ramsey's approach to split the money into three envelops; Giving, Saving, and Spending [2]. A child that tithes his earned money will learn more than a child who is given dollar to put into the offering plate. The child learns how to set-aside hard earned money for savings or emergency funds. In addition, he learns how to manage funds for buying toys or candy.
This is what Dave Ramsey considers changing the family tree; I consider it a way to establish a heritage of honor. Let's not give our children the opportunity to learn bad spending habits. Instead, we should teach them to properly manage funds and how they can teach their children to do the same.
I would like to recommend the use of Dave Ramsey's "Financial Peace Junior."
Footnotes:
1. McDonald, T. "Breaking Bad Habits - 5 Simple Steps fro Changing a Habit," http://ezinearticles.com/?Breaking-Bad-Habits---5-Simple-Steps-for-Changing-a-Habit&id=71021
2. Ramsey, Dave. "Financial Peace University," 2006, www.daveramsey.com
Posted byAnonymous at 12/15/2007
Labels: child development, family, foundations, money, traditions
