Different Kids

Sorry I have been away so long.  My "real job" keeps getting in the way!

Most of us know intuitively that we view/handle money differently than our siblings or parents.  We probably don't know why however.  I certainly don't.  I am getting a crash course in it right now watching Logan save up for a high ticket item - a Lego Mindstorm Robot kit.

This item, once purchased, will be the highest price item either of my kids have successfully saved for.  Logan's older sister Miranda coughed up $50 for an MP3 player at one point, but this robot is $250!  Christmas money has been saved, allowance hoarded, spending curtailed.  I am kind of impressed, and a bit surprised at what I think are contradictions in behavior.  What do I mean?  How's this:


Miranda -

• Started the allowance program younger than Logan
• Has always taken it very seriously
• Has never had to "take a break" as a result of not keeping up the agreements that govern our allowance program
• Almost always spends all of her spending money
• Frequently admits to no longer using things she has purchased

Logan -

• Literally aborted the first attempt at allowance
• Needs me to repeat myself often before things sink in
• Is rather disorganized and has had multiple "breaks" as a result of broken agreements
• Always has money left over at the end of the month
• Has been astoundingly disciplined saving for this robot

The good news is that they both elected to continue to contribute to their savings even after their "emergency fund" was fully funded.  So even with the different approaches to handling their spending, they are both still following "best practices" with their income.  I can only hope this continues when they are out from under my watchful eye......

Banking day this weekend.  Time to check out what the Dow Jones has done over the past month to see how much Miranda's net worth has increased!

Have a good one.

Motivation - What really get results?

So I was checking out Dan Pink's blog today, and there was a post about motivation that I find fascinating.  The bottom line is that the positive impact we have on the world is a far more effective motivator than most/any others, like money or the other perks that corporate America comes up with.  Want to read the post?  Click here: Dan Pink's Blog.

So why bring this up?  Well, last week Miranda pulled some cash out of her Giving Account for a fundraiser at school to benefit cancer research.  I have not asked her about it, but I am willing to bet that she gets way more out of making these decisions for herself than if I told her where to donate the money.  I'm also guessing that being in control of this makes it a lot less painful for her to set aside the money.  Based on Pink's little experiment, she may even enjoy it!

Oh, and I think financially savvy kids are generous kids who make a positive impact on the world around them.  That alone makes this project worthwhile.