Make Room for Others' Experiences

Levin, Ross
July 2004
Journal of Financial Planning;Jul2004, Vol. 17 Issue 7, p26
Academic Journal
This article presents the opinion of the author on the need to consider how people behave when it comes to money. I have a deal with my 11-year-old daughters. They receive an allowance of $11 a week. My wife, Bridget, and I expect that they put some of that into our giving jar to be donated to a charity of their choice. For every dollar they give us to put in the bank to be held for a year, we match. They therefore get 100 percent return on their savings. Anyway, their bank statements came yesterday. One of my daughters, who is sort of a spendthrift, has already accumulated $150 in her savings account, but she's spent all the rest of her money. The other daughter has only $50 in the savings account. The one with the least amount of money in the account, though, has $150 in cash that she has saved to buy an I-pod. So, daughter 1 has saved $75 and daughter 2, $175. It is evident that the I-pod daughter is putting away more money each month, but it is being invested for future consumption, not growth. As I thought about this, I realized what great financial planning lessons I am learning from my girls. Each of them is doing something very different from the other, yet they are both experiencing the most basic core financial planning skills.


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