After a layoff in late 2015, finances became tight. My wife and I took on consulting jobs to keep the lights on, but in early 2017, I was completely out of work for a time. When our daughter complained about not going out to eat as often, or doing as many fun activities, we had to talk to her about the effects of jobs and money. We tried to clearly demonstrate how many advantages she’d had to date, as well as how important cash flow is to getting the things you want.
Now that things are back on track, she better understands conversations about give and take when making financial decisions: why we buy a certain brand of food, or why we choose to purchase something that’s good enough, rather than the very best. When we have conversations and price comes up, she can vocalize and rationalize to herself about how to make these kinds of decisions. Now, for birthdays and other gift-giving occasions, even if the money is coming out of our pockets (not her piggybank), we give her a budget with which to work. It’s our goal to make sure she knows the value of money, as well as how to weather financial hardships.
infographic by: discover.com