nvestysly
Full time employment: Posting here.
- Joined
- Feb 19, 2007
- Messages
- 600
When I was about 9 or 10 years old, I wanted a baseball glove. My dad drove me to the bank and I withdrew $9 (guessing) for a glove.
I got back to the car with my passbook and was confused because I took out $9 from my savings account yet I still had about the same balance. I thought the bank made a mistake!!
Dad explained "interest" right then and there, adding "that's how rich people do it...they live off their interest". 55 years later I still remember that like it was yesterday and....a life lesson learned.
I had some similar experiences when I was 10 - 15 years old.
The first was mowing yards and saving much of my money - it was surprising to me how quickly I was able to accumulate money in my credit union account.
The second was when my father suggested I loan a family friend $500 for 3 months. The friend needed a short term loan for a small business venture. The friend had asked my father for the loan and apparently my father suggested the friend borrow the money from me. I figured out how the loan was to be handled - I chose a balloon payment - and made a simple contract that both parties signed.
The third was as a teenager when my father hand-carried mail from the post office to several older widows in our very small town. One widow in particular received dividend payments throughout the year and she lived on those to a great extent. This made a very big impression on me. DW had a similar experience with friends of her family.
And that's why I think a lot of the criticism of millennials is a bunch of hogwash
I love you guys but i swear it seems everyone here was/is financial geniuses at 13.
Now I totally admit I guess I am the black sheep of this family, no at 22 I didn't have 50K in a vanguard ETF and neither do my kids age 22 and 25.
I admit, I encourage my kids to celebrate their birthday. humm it only comes around once a year. so yes, i don't mind if take a date out for her birthday and go see a Broadway play.
seriously are we now denying our kids even celebrating their bdays because they have to retire in 30 years
Generally we've taught them the 10% rule. they have to save 10%, give 10% to the "house", and 10% to church after that I do hope they enjoy themselves.
So let me ask those with young adults? are they never allowed to go to a concert because of the price? how about a ballgame?
Is the entire point of being young simply to work because you'll be old soon?
My oldest son 24 spent last summer as a camp counselor in a camp designed for Aspberger kids ( a form of Autisum), yep he blew a lot of his meager salary but since this was his first time on his own, the sense of accomplishment and memories he has made I think will be worth more than the "compounded" interest in 20 years.
My youngest just blew 1/2 his savings on a guitar so we made a deal, he buys the instrument I'll spring for the lessons. Now I don't know how long this will last, maybe he has some ability maybe he'll flame out but I think it's worth his 600 bucks.
like I said, it seems I'm the odd duck here. I guess the millennials I know (my sons, my nephews and a few coworkers) are pretty normal young adults. they make some good choices, they make some bad choice
I wasn't a financial expert and age 13 and I only play a CFP on TV (lol!). Seriously, the formative experiences I had at an early age definitely put me on a solid financial track.
I don't begrudge you and your children living it up once in a while but these are choices you make during your life (and theirs). There's no harm in buying things and experiencing things in our lives that enrich our experiences here on earth. However, money provides options - and if money is always spent (or allocated) on something other than savings and investments it's not difficult to wonder why there is more month than money.