Archives For Kids and Money

Rich vs. Poor Habits

July 17, 2015 — 5 Comments

I found these stats from Tom Corley comparing the habits of rich people to poor people interesting:

  • 72% of the wealthy know their credit score vs. 5% of the poor
  • 6% of the wealthy play the lottery vs. 77% of the poor
  • 80% of the wealthy are focused on at least one goal vs. 12% of the poor
  • 62% of the wealthy floss their teeth every day vs. 16% of the poor
  • 21% of the wealthy are overweight by 30 pounds or more vs. 66% of the poor
  • 63% of the wealthy spend less than 1 hour per day on recreational Internet use vs. 26% of the poor
  • 83% of the wealthy attend/attended back to school night for their kids vs. 13% of the poor
  • 29% of the wealthy had one or more children who made the honor roll vs. 4% of the poor
  • 63% of wealthy listen to audio books during their commute vs. 5% of the poor
  • 67% of the wealthy watch 1 hour or less of T.V. per day vs 23% of the poor
  • 9% of the wealthy watch reality T.V. shows vs. 78% of the poor
  • 73% of the wealthy were taught the 80/20 rule vs. 5% of the poor (live off 80% save 20%)
  • 79% of the wealthy network 5 hours or more per month vs. 16% of the poor
  • 8% of the wealthy believe wealth comes from random good luck vs. 79% of the poor
  • 79% of the wealthy believe they are responsible for their financial condition vs. 18% of the poor
  • Click on the source link below to read the article in its entirety.

    Source: Will Your Child be Rich or Poor? 15 Poverty Habits Parents Teach Their Children via African Leadership Magazine (found on Flipboard)

    What Bradley Owed

    June 18, 2015 — Leave a comment

    I read this story earlier this morning.

    There was once a boy named Bradley. When he was about eight years old, he fell into the habit of thinking of everything in terms of money. He wanted to know the price of everything he saw, and if it didn’t cost a great deal, it did not seem to him to be worth anything at all.

    But there are a great many things money cannot buy. And some of them are the best things in the world.

    One morning when Bradley came down to breakfast, he put a little piece of paper, neatly folded, on his mother’s plate. his mother opened it, and she could hardly believe it, but this is what her son had written:

    What Bradley Owed (1 of 2)

    His mother smiled when she read that, but she did not say anything.

    When lunchtime came she put the bill on Bradley’s plate along with eight dollars. Bradley’s eyes lit up when he saw the money. He stuffed it into his pocket as fast as he could and started dreaming about what he would buy with his reward.

    All at once he saw there was another piece of paper besides his plate, neatly folded, just like the first one. When he opened it up, he found it was a bill from his mother. It read:

    What Bradley Owed (2 of 2)

    Bradley sat looking at this new bill, without saying a word. After a few minutes he got up, pulled the eight dollars out of his pocket, and placed them in his mother’s hand.

    And after that, he helped his mother for love.

    Source: The Moral Compass: Stories for a Life’s Journey (affiliate link) by William Bennett, pgs. 22-23

    I see ads all the time for that say stuff like:

    “Drivers who switched from State Farm to Allstate saved an average of $362 a year.”

    This reminds me of the time when I called my insurance agent to ask a question about our policy and she talked me into a different plan with the same company because it would save us lots of money. So, I went from a one-year policy to a six-month policy. The premium a little over half what I was previously paying. All was great until the 6-month renewal, which increased a lot. I wasn’t happy.

    Anyway, back to the ad…

    Two things to consider:

    1. It’s only savings if the two policies are the same. Insurance companies can and will shave off benefits and call the reduced premium “savings.” Perhaps the reduced coverage is okay. It’s up to you. Just make sure you know what you are getting.

    2. Don’t expect the same low premium upon renewal (think about the really low rates for first time subscribers to newspapers. The rate is incredibly low and then incredibly expensive upon renewal). It’s a pain to change insurance companies. Insurance companies know this. That’s why they tell you how much you can save by switching. But…they don’t make money if they are charging a lot less than everyone else.

    In another month or so, our household will have our second teenage boy licensed driver. Ugh!

    Pray for me.

    My Dad’s Jeep

    July 8, 2013

    As some of you know, my Dad passed away over five years ago. He left behind a small knife collection, some collector’s coins, finance books, and a 1994 Jeep Wrangler. The Jeep had been basically sitting in their garage for the last five years. It was rarely driven more than a couple of days a year. Somehow, the idea of my oldest son (my Dad’s second oldest grandchild) buying it came up. My son fell in love with the idea and encouraged me to ask my Mom what she thought. I called her one day and asked her what she thought and she agreed to sell it to my son.

    So, my wife and I made a deal with our son. We agreed to pay half (or up to $4,000) on a vehicle. That meant he needed to save up a pretty large chunk of change. It took him over a year and he even experienced a setback when he was involved in a minor fender bender and had to pay $700 to fix their car. Anyway, he saved up his part and we went to Kansas last week and purchased the Jeep from my Mom.

    My Son in His Jeep

    Here it is with new tires and wheels…

    My Son's Jeep with New Wheels and Tires

    We made it back home today. He drove his Jeep the entire way home. I’m proud of him and what he’s been able to accomplish. I also know that he will take really good care of this Jeep.

    Oh, and I stuck to my part of the bargain. I paid half and that was all. He worked extra hours and saved up additional money to buy tires and wheels.

    Parental brag on…

    From my second son (he’s 16-years old):

    “You know what feels good? Wen a kid from school asks if he can work for you.”

    He and his business partner have a lawn mowing and pressure washing business. Their goal is to make $20,000 this summer. Seems pretty lofty but I’m proud of them for trying instead of setting around all summer playing video games. My oldest is working at a grocery store.

    I’m very proud of my kids.

    …parental brag off.

    When our oldest reached driving age, we handed down our 2002 Buick Rendezvous for him to drive. It’s not his car. It’s Mom and Dad’s car that he gets to drive until he gets his own car. No, it’s not a kid’s dream car but beggars can’t be choosers. It’s big, safe, and perfect for a kid to learn on.

    My wife and I agreed to pay half (our half is capped at $4,000) on our boys’ second vehicles. Our oldest son has been scrimping and saving for about a year now. His goal: the Jeep my Dad drove when he was alive. Our son passed his goal of $4,000 a couple of weeks ago. He was still saving in order to pay the taxes on the purchase. All was great until last week when he was in a line of cars slow moving cars and let off the brake and rolled into a minivan.

    We’re already paying enough for insurance as it is so I told the other person that we would pay him cash. We settled on $700, which my son paid out of his Jeep savings account. He wasn’t happy about it but I felt it was his responsibility to pay for this mistake. There’s no doubt about it: zapping $700 from his account was quite a setback. After he calmed down, he did some math and figured out that he should still have his part of the money saved up by the time we go to Kansas to pick up the Jeep (if he doesn’t, we will put off the trip until he does).

    I’m not posting this to brag about my parenting. I’m posting it because I think it’s good for kids to pay for their mistakes. If I were to file this on insurance, our rates surely would have increased. Yes, I probably would have made him pay the difference but this was seemed easier and it also stung more. I’m certain he will not forget the sting of this accident for a very long time.

    It’s a good learning experience.

    Spoiled Kids!

    May 10, 2013

    The Mansion section of today’s WSJ featured Luxury Kids’ Rooms.

    A DJ mixing station in the sleepover room. Secret passageways inspired by “Harry Potter.” A fully tricked-out videogame arcade. You’ve entered the teen wing of the house.

    As parents look for creative ways to keep older kids hanging out at home, some are turning to an unexpected source: architects and designers. The result is a new category of spaces now showing up in family homes: teen lounges, hangout areas, sleepover spaces and “offices” for doing homework.

    Want to hear something funny about JLP Land? We have ONE TV in the entire house. ONE. It’s not so much that I’m against having more than one TV. It’s more due to the fact that we have one living area and I’m not a fan of kids having TVs in their rooms.

    The article continues…

    Chris Pollack recently finished renovating a Manhattan townhouse that includes a 1,000-square-foot teen suite with ping-pong and billiards tables, a recording studio, kitchen and a theater for movies and videogames. The estimated cost: roughly $750,000. “Our clients with kids going into the teenage years are thinking about this more and more,” he says. Mr. Pollack, of New York-based design-and-construction adviser Pollack + Partners, says he has also accommodated several requests for homework rooms equipped with security cameras, so parents can keep an eye on computer usage.


    The article included several pictures of silliness. If you can access the article, you might check out the pictures. I’m sure they’ll make your day.