Conversations About Money

Have you ever noticed that conversations about money are awkward at best, socially unacceptable at worst? Since I am still not exactly making the big bucks, these rules do not yet seem to apply to myself and to my friends. I have a feeling that the time to discuss money will soon be over with. I think we do a great disservice to ourselves by not discussing it. Especially since most people have no idea what to do with it!


A couple of weekends ago I went to visit my friend H who is on internship in Nebraska. I rode most of the way to Nebraska with H's sister M. I have noticed that these girls seem to be pretty smart about money. They are not diehard frugalites, but they do like to get the best deals on things and both use coupons for clothes shopping on a regular basis. M can be downright tightwaddish at times with some things (you know that makes me proud!), but both will spend the money for things they find important. Both also have savings accounts, a concept which seems to have escaped my generation. Both are younger than I am (H is 24 and M is 20). Both received what Stanley and Danko, authors of The Millionaire Next Door, term "economic outpatient care" from their parents in the form of school tuition. However, both work regularly and work long hours and have done so since age 16. Neither are spoiled brats or expect things to be handed to them even though they have been given certain things from their parents. Both are pleasant and fun to be around.



In the car ride up, M and I got to talking about someone who had inferred that she is a "princess" because they felt she had too much handed to her (which, by the way, is not true). This led to discussion about money and savings. I asked M about savings and if their parents taught them about money. She told me that their parents expected them to save money from a very young age. She also told me that their father would (and still does) regularly contribute a small amount to their savings accounts. Their father also taught them to not keep excess money in checking when it could be drawing interest in savings. M told me that they were also expected to have jobs and help support themselves.



Later that weekend, H and I got to talking about budgets, savings, and our current salaries. I had asked her how much she is putting into savings because I have no idea how much I should be saving right now. We make about the same amount currently, but her expenses are more than mine. This is mostly due to higher rent and having to drive quite a bit for her internship with a lower level of expense reimbursement than what I'm getting. H expressed some concern that her living expenses are eating up her paychecks with little left over to save. I was very impressed by this since most people my age DO NOT HAVE any savings to speak of, and most are WAY worse off financially than H is. And yet she is concerned! She had a written budget worked out before internship began, but they split her checks differently causing her budget to be basically invalid. H noted that she hoped to be able to save her expense checks once they started being deposited to her account.


The lessons I learned:
1) Talk to your children about money from a young age.
2) There are ways to provide things for your children with them remaining grateful, unspoiled people.
3) Teach them the importance of savings.


I really want to start talking to more people about money. I think the lessons learned would be invaluable!