For kids, money really does grow on trees. If you’re familiar with basic psychology, you’ve read about a child’s magical thinking stage, their advances to concrete operational thinking, and their propensity for egocentrism until age seven or eight. If you want to learn more about how children think differently than adults, you may want to read up on Jean Piaget’s research about how a child develops. His contributions to developmental psychology are used by advertisers and marketers, pediatricians, psychologists, teachers, and even parents. Here are a few basics that will help you effectively teach your child about responsible spending.
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Looking at your finances and figuring out how to manage multiple financial priorities can feel like you’re running in circles. How can you pay off debt and save for retirement? How can you pay for your child’s education and invest in your own future?
It’s tough to manage all your short, medium, and long-term financial goals at once. On one hand, focusing on one thing can lead to burnout and also leave you financially vulnerable. On the other hand, spreading your finances too thin to focus on all your goals isn’t very effective either.
If you’re trying to find balance in your financial life, here are some tips to manage multiple financial priorities without letting your big goals suffer.
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Last we checked, money still hasn’t started growing on trees yet. Not in our yard, anyway. So we decided to experiment and see if we could find some new ways to save the same old money.
Our experiments were a success. We’ve saved on nearly every one of them, and I’m thrilled to show you how we did it.
Being able to save money isn’t some exclusive privilege only reserved for financial bloggers. Here’s how one of our readers, Vincent, saved recently. They are easy to replicate, so everyone can do this. Check out what he’s done.
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Farmers know how to get the most out of every dollar spent, as nothing goes to waste when you live on a farm — they even recycle manure! For many farm families, living frugally is a way of life passed down from generation to generation. Frugality is an intentional part of raising farm kids, so what can we learn from them?
Here are five lessons on frugality for kids from the farm.
Money Lessons for Kids from the Farm
1. Recycling is essential.
Food scraps get fed to cats, dogs, cows, and other livestock instead of being put in the trash or down a garbage disposal. Old tractor tires are used to grow potatoes or serve as swings and flower beds. When a building needs repairs, materials are often found already on the farm. Old roofing isn’t discarded. Nails are pulled from old boards for re-use, and roofing that’s no longer fit for the farmhouse is recycled for the chicken coop or woodshed.
Bailer twine is saved for tying up plants, securing loose items, and even holding up your britches in a pinch. Look under the kitchen sink, and you’re likely to find a ball of used tin foil, carefully washed and stored for re-use.
How often do we recycle in our modern society? And recycling (or repurposing in some cases) doesn’t even have to be about saving money. Sometimes, it just makes things better. Did you know that Cantonese restaurants use ingredients left over from different dishes to make other ones? Their soup base is often a mix of different scraps taken from different orders. They take a bit of crab meat here, a spoonful of chicken oil there, and voila, a base that can create a brand new dish. That’s one of the reasons why Cantonese restaurants are better in Asia. They just have a ton more customers to create complex dishes from all those orders.
When was the last time you thought about reusing what you already have?
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I’ve been playing this game called Path of Exile recently. Actually, let me correct myself. It’s more like I’ve been “living” the video game lately because I played for so many hours already. I found out that this behavior is pretty common. In fact, spending hours and hours on a game is so common for so many people that there’s actually a term for it. They call it “no-lifing” (pronounced no life-ing) a game because you spend so much time of your day in the game that there’s no life left to do anything else in your life.
My wife can’t understand why I’m so obsessed with this game. And I agree with her that there’s no reason to spend so many hours trying to get an item in the game that’s pretty meaningless at the end. But look under the hood more closely and you can see why people become so addicted. In the game, you slay monsters, and eventually, you get enough in-game currency to obtain a better item. This in turn makes your in-game character more powerful and thus lets you enjoy your life a bit more in the game as you slay monsters more efficiently to gain more in-game wealth.
Here’s where it dawned on me that this is just like our pursuit of financial wealth. You make money (and save it). Eventually, you amass enough to be able to use that money to make money. Then you can use the money to enjoy life a little bit more and be more efficient at making more money.
That’s all interesting, but can we translate this understanding into us being able to gather more wealth? Luckily, it turns out that we CAN use this information to further our path to financial independence. Can you imagine how much more money I can amass if I spend just a fraction of the time I spend on these games on activities that result in more wealth?
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I have my reservations with technology as it relates to money. I love how technology can help us better manage our money, but I’m also somewhat reluctant to turn too much of my financial management over to technology.
That’s because too much of a hands-off approach leads to poor money management and can get you in trouble financially. Technology can also be more of a crutch than a help, especially when it doesn’t work like you thought it would. In the end, you still have to know how to manage your finances manually without the help of a computer or software.
On the other hand, I can see how technology can be a great help in spending money wisely and saving money. Here are some cool technology advances associated with money.
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