Preparing the next generation.

[mommy4ever]

A thought crossed my mind the other day, and it's been sitting with me.

We need to better prepare our children for the future. Teaching them to spend wisely, within their means is a good thing. I was never given that. I had to and am learning the hard way. But whatever, most of us learn that. What i am referring to is the fact, that no one ever taught me to prepare for recession.

I am not laying blame. I must have lived in a bubble. I know there was in the 90's. I wasn't affected as I was a starving student, and lived as such..lol. But really, I was never told that there could be a time, that through no fault of our own, the economy may be such that we can't find jobs, etc.

Now, for several months I've been watching, as things slowly get worse, I've been paying debts off, trying to get ahead of the game. And realized, that in everyone's adulthood, they will face one or more economic recessions.

WHY WAS I UNAWARE OF THAT FACT? Perhaps I was sheltered. But I want to better prepare my kids. I want them to build a great EF that they could live off of if needed, which I hope never happens. I've been blessed with a hard working man in my life, who has never been unemployed, I have an education, that has allowed me to build my own business. We have done most things right, except debt management...doh. But we really didn't have reason to worry, we make a decent income, we pay our bills on time, and more than the minimum. But yet here it is. Potential layoff casting a shadow over us. I don't have that cushion to fall on at this moment. But I'll be working on it.

I will be talking with the kids as they get their first jobs of the importance of building that savings. That at some time in their life, they will be faced with layoffs, not because they aren't hard workers, but simply because the jobs aren't there. They need to be aware of it, and need to work on building a savings that they never touch, unless this happens and they can't make it on what they are bringing in, to cover the basics, not extras. If we can't find work, we cancel cell phones, satellite, dinners out. We trim the spending to necessity. And once we have work, we prioritize rebuilding that savings.

I really wish that would have been part of my education growing up. I know my parents had hard times, they took my babysitting money for groceries and utilities. But not once did they ever explain it to me. I had lots of resentment over that. I worked hard and got "nothing" for it.

Now, again, I'm learning through the school of hard knocks. But I'm facing it with as much positive energy as possible. Try not to worry, and plan for the worst, hope for the best. In fact, I'm having some fun matching coupons with loss leaders. We don't get many here, but I am finding some. Can't wait for warmer weather and start biking and walking to cut more costs.

I want my kids to be able to face a recession calmly, knowing they are prepared. Not with that anxiety I feel myself suffering through.

[peanut]

This is interesting. I was in my 20s when the 80s recession hit and homes were being foreclosed on. We didn't own a home. We'd just graduated university and had jobs. Well...until 1983...then I couldn't get a job. But I was pregnant, so it was a bit of a blessing in disguise. Thankfully DH was gainfully employed.

Fast forward to this recession. Our mortgage is paid out, we have no debt. DH was a stickler that we not carry any debt but our mortgage. Smart man. I was a stickler for paying out the mortgage as early as possible. We succeeded 3 years ago. Those two facts alone have put us in a good position for this recession.

But then you layer on frugality, stockpiling, learning to live life creatively, rather than always having to buy things to fill our needs, and you have a real winner combination! We don't stockpile like a lot of people on this board, but I could easily last a month if I had to without buying anything. It wouldn't be the healthiest diet, but it would be food.

The big thing is learning to think creatively about how I live my life...about choosing how to spend my time, money and talents in frugal fulfilling ways. Ways that multiply and benefit more people than me. It can be fun. Those are the things I have to go back to my grandmother's generation to tap into. They didn't have a lot materially, but they did learn to appreciate the simple things in life and have fun.

My way of teaching the next generation is to provide basic information. They have the choice to follow it or not. Both my girls are adults now, so I wait for them to ask for information...or mention something in response to a problem they have. Or give them frugal cookbooks for birthdays...or gifts that encourage the frugal lifestyle. I'm very blessed that I have two girls who like to cook from scratch, and know how to do it.

Jean

[elphie]

I really think the best way to help the lessons stick is to teach it as a lifestyle choice that is about blessing, not deprivation. I think this is why a few generations removed from the Great Depression many people have swung the pendulum so far into excess. Often people who grew up during the depression went without food or knowing where they would sleep each night and vowed their kids wouldn't do without these basic necessities. Then their kids had plenty to eat but felt deprived in their childhoods, especially if the parents were so frugal and worried about money that they never allowed for any money to be spent on fun, so these people vowed that their kids would have all the things they never did. And they went into debt to keep that vow. The amount of debt continued to increase with each generation.

Now, a few generations later we are blessed to have the whole picture. We see that neither deprivation or excess are the answer. What I want to pass along to my own children is a sense of balance. My kids know that needs are met first in a budget, that saving is important, that debt is really only for major purchases such as a home. But they also know that when all these obligations are met that we can have fun. We can go see the Chinese Acrobats perform at the local college, or go on a fun vacation (within reason). They know that every choice we make is a priority because we have XX amount of money for entertainment this month and we have to choose how to spend that money. They also know that fun can be had for free and that yes, they have to help in the garden but they also have free time just to be themselves.

And I know some of you are going to say that being frugal IS fun, and that is true but not necessarily for every personality so we have to find ways to fit fun in. Just like we all need exercise but some of us enjoy it and others loathe it, responsible financial choices is necessary for everyone but not fun for some people. Life is all about balance and finding the frugal/fun balance is the key IMHO.

[brennasmom]

I am definantly preparing my children. I want them to understand budgeting, cooking, how to shop thoughtfully, that you have to save and can't have everything you want this minute.

My kids both love to go to the thrift shop

They will both learn how to budget

We teach them to save

I think honesty is so important. Kids can understand and if the budget is tight we share that with them.

[joyofsix]

I am trying to teach my kids about lifestyle choices. We discuss finances around the kids frequently, including mortage rates, thrift shopping, scratch cooking, etc. So far I've got savers who spend their money wisely. I'm sure they'll have youthful mistakes but hopefully they'll have a good knowledge base. What they choose to ultimately do I can't control.

[forHISglory]

Wonderful plans and advice!

Hubby and I came from frugal families and didn't think too much one way or another about it. How we lived was just the way it was. But once I left home, I began to see all the "freedom" out there and I wanted to jump on the spend wagon. It didn't take long before I realized that my parents were right, and I was back to my frugal ways.

So we raised our son in a financially careful household. He knew the value of yard sales and thrift shops. He knew why we didn't eat out and why our vacations were not the big glitzy ones. He understood why we handled allowances as we did, and he watched us budget and pay taxes and balance checkbooks. Yet with all that background, he became a person who spends recklessly.

I wouldn't change a thing I did in teaching him about money, but I had to face the fact that not everyone will fall in line with it. His money habits drive me crazy, and I refuse to finance his school of hard knocks. But I guess at least one factor of our financial plan rubbed off: he is generous to a fault! And we just continue to love him and advise him, hoping that one day he'll realize the truth about money.

[kmsinsa]

I am definantly preparing my children. I want them to understand budgeting, cooking, how to shop thoughtfully, that you have to save and can't have everything you want this minute.

My kids both love to go to the thrift shop

They will both learn how to budget

We teach them to save

I think honesty is so important. Kids can understand and if the budget is tight we share that with them.

I do the same thing with my daughter who is 6. When she receives money as a gift, a portion of it goes to into her savings account. She informed me the other day she is saving for a laptop.

Also, she loves the dollar store. She will tell people "you know if you have 10 dollars and you go to the dollar store you can buy 10 things?" She will sometimes be given a dollar or two to spend at the dollar store and it seems like we're there forever because she has to find just the right thing.

Although we live in the city, our family is still in the country so she is given the opportunity to see where eggs, meat, veggies come from and not "just from the store". When she's back home she helps with getting the eggs in the morning to shelling peas and such.

Hoping teaching her now will help her make wise decisions when she is older (as long as she doesn't end up like I did and marry and spendthrift (but that's a conmpletely separate post )

[Momto2Boyz]

We are simply trying to lead our kids by example. However, we are somewhat frank about our discussions about money with them. They know how much we have in savings, and they know it is there because we choose for it to be there. We give up luxuries to keep our balance in our savings account. And we are trying to teach them the value of saving for something bigger. Each year, they get birthday and christmas money. I have one that will spend it on whatever toy is all the rage at that moment, and I have one that will put it ALL into his account (he is saving for a Lamborgini when he turns 16...don't have the heart to tell him at age 5, how unrealistic that is...so he still thinks he'll have enough). My oldest gets mad when he sees the balance of my youngests savings account, but I just tell him it's becuase his brother doesn't buy new toys with it...he sees the bigger picture and really wants to buy a car later! We'll see what happens this year, I think my oldest is planning on putting his money away to try to catch up to his brother!

[dogmatix]

This subject is close to my heart as well. I have 11 month old twins and I think about how to teach them self reliance, self sufficiency, frugality, and peaceful - environmentally sound living.

Lead by example and keep a positive and consistent attitude and you will do well.

[frugal is fun]

I have a four year old and I struggle with the teaching part daily. He understands as much as a 4yr old can about saving, he has two piggy banks (one at my house and one at his fathers) but when he earned $2 in the fall helping my ex rake leaves he asked me to take him to the dollar store. So he spends too.

BUT every now and then he will ask if we have a coupon for something or if something is on sale. So I guess its a good start.

[angelbumpkin]

I try teaching my kids about budgeting, saving, and couponing. We actually make a game out of alot of the things we do.