Pile of Money (Photo: Postmedia Files)
I was born in the 50s, educated in the 60s and 70s, worked from 70s to date mostly in positions that involved persons with disability and helping them navigate through the challenges of finding their place. My current ‘job’ is that of elder statesmen, sharing what I know about growing up and aging with disability with a broad audience – online! I also share through my biweekly column with this publication.
Growing up in a large family, positioned near the bottom of the sibling ladder had its advantages; I was able to observe how my siblings did things, including how they spent money. What set us apart is that they could easily go out and about in the community to spend theirs – at the corner store, at a local eatery when students and young people gathered, at sporting events, and so on. I could do none of that. I relied on Mom or an elder sibling with a driver’s license to meet those needs of community inclusion and opportunities to exercise purchasing power. Our money came in the form of an allowance. I remember going to Dad’s place at the table on allowance day to get my weekly share of the ‘family money’. Then I made my way to my bedroom to put it in my bank. I was a saver from way back!
As they matured, my siblings got jobs outside the home, initially working during the province’s potato harvesting season. I stayed home, where Mom gave me opportunities to earn money around the house, doing small things, like ‘making’ my bed. That was always fun. In my case, chores involved movement, movement required legs. Legs got exercised. And I got money for walking. While my legs were growing stronger, I was growing my money bank. A win-win.
The earlier children learn about money and how to manage it to make it work for them, the better. Frankly, I’d like to see more community based seminars available for parents so that they may apply that knowledge in meaningful ways with their own children, especially the youngest. Contributing to chores around the house, whether it’s making his bed or clearing his dishes from the table can be started with a child as young as 3, with lots of verbal praise for jobs well done, along with a big ‘thank you for helping’. Showing a child he is valued sets the stage for him being amenable to expanding his repertoire of skills.
When my stepson was young, he learned about loans; if he wanted something outside what his allowance would get him, the Bank of Mom loaned him the money. On allowance day, I counted out his weekly portion of the family money, and took away what he owed the BOM. Each week, it was a small amount, so as not to overwhelm his feelings but enough to make an impact. He learned that the money borrowed came from my own work preparing manuscripts for publishing houses in the city and also working for a few professors at the university. I explained to him how much work I’d have to do to pay a phone bill, a light bill, a bag of pet food, or shoes for him as examples of the flow of funds. He understood the reasoning and was able to stay on track and on task. He became financially aware and more thoughtful about spending.
Being responsible for keeping ones bedroom tidy was a given as being part of the family. Setting the table and unloading the dishwasher required paying attention to detail, which was more like a job for which there was financial reward, above the allowance. He was encouraged to save that.
It’s been my experience that the single-most important thing one can do on their road to improved financial health is to pay themselves first, regardless of income. I continue to pay myself first, deliberately living below my means. When I was single, I took 10% right off the top, before paying bills. When I married, my income was not combined with my husband’s; he was a retired financial planner/stock broker and was impressed at my money sense. When he passed away, part of his life insurance paid off the mortgage. I took out another to do residential rehabilitation to adapt my home to my aging needs which was a good move to further solidify my credit rating. I made lump sum payments to bring down that mortgage debt quickly.
After I paid myself first, then the household bills, including the biweekly mortgage payment, I paid myself again with what was left – bonus bucks! I wasn’t much of a party animal going to clubs in my youth, etc., so I was able to save for things I wanted and pay cash for them. Credit card debt didn’t plague me. A few of my siblings got caught in that cycle, treating credit cards like money, forgetting it had to be paid back. My best advice is this – save for what you want, then pay for it on a credit card. Then, pay off that card loan immediately. Do that a few times. Establishing that pattern of fiscal responsibility pays off later on when it comes time to apply for bank loans.
Btw, this frugal Scot is mortgage free, now paying the bank of Carla a nice chunk o change every month instead.
Carla MacInnis Rockwell is a freelance writer and disability rights advocate living outside Fredericton, NB with Miss Lexie, a rambunctious Maltese and Mr. Malcolm, a boisterous Havanese. She can be reached via email at Carla MacInnis Rockwell
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