The Value of Money
The Value of Money
It is no surprise to the readers of this blog that I have enough. I have enough money to live life comfortably 
without worrying about the well drying up. And while I am second generation FI myself, I worry about the effect this security has on my children. My kids know, for better or worse, that if we need something, we buy it. There is no struggle. No fear. In fact, as I pull back from work, they see that we have all the monetary benefits of financial independence but that dad isn’t busy or stressing as much. So in this environment, I worry that the children will feel that everything is easy. How am I going to teach them the value of money?
Of course, I can make them do chores for an allowance. I can teach them to budget, and pay for their own expenses. But what if this all falls short?
So I am always on the lookout for unique methods to drive home the value of money.
The Apple Watch
For years, my son has been begging us to buy him an Apple Watch. He complains about how his friends have the newest and greatest electronics, and we make him buy used or broken. Neither my wife nor I feel that a child of his age should be allowed such luxuries, even if we can afford them.
Years passed, however, and my straight A son, as well-behaved as can be, was still begging us for this costly purchase.
So how could I both buy him what he rightly deserved, and yet still maintain his understanding of the value of money?
And then I had an idea
Health Incentives
My wife and I both get health care coverage from her employer. Over the last few years, they have provided incentive programs to encourage good health habits in their employees. One of these incentives was particularly enticing. By wearing a tracker and walking 10,000 steps per day, as well as recording meal choices, points are won towards a bevy of rewards.
One of those rewards was an Apple Watch.
I knew that if I walked 10K steps a day and recorded every single meal on my App, I would have enough points after 10 months to get a free apple watch. The timing was perfect for my son’s birthday.
While free is always my preferred price, the allure had very little to do with the discount.
Suddenly, I had found a concrete way to teach my son the value of money.
Healthy Habits
My wife and I were very purposeful over the next ten months.
Every time we left for a walk or jog, we made a big deal of letting him know. He watched as I inputted my meal selection onto the phone. We had contests to see who could get the most steps each day.
He counted his own steps on his phone. After a hard day of camp, we compared his activities to our five mile walk.
Day in and day out, we made sure that he was cognizant of our struggle. He noticed when everyone was getting ready to go up to bed, that I was jumping on the treadmill to get that last thousand steps to make my daily goal.
Rewards
After ten long months his birthday came, and to his great surprise, he unwrapped a brand new Apple Watch. A watch that cost not a single cent, but delivered an important lesson about the value of money.
Because my son now knew. Instead of some obscure understanding of paper or credit, he could assign a concrete image to what this expensive piece of electronica cost. It cost 300 days of tracking my meal plan. It cost 3,000,000 steps taken at inopportune times at the end of the day or when everyone else was relaxing.
The value of money is time. It is giving up one abundance in trade for another.
Forward
I would love to say that my son’s thirst for things has been quenched, but it would be a lie. He still salivates over the latest and greatest technological gadget on the market.
But now he has a much better understanding of the value of money. His notion is no longer abstract but rather concrete.
And I think that was well worth ten months of getting in shape and eating well.
3 million steps for an apple watch, sounds like a fair trade haha! Only i thought, he would be doing the walking LOL. This is literally one of the biggest things that scares me, is how do i avoid raising a spoiled brat that doesn’t understand the value of a dollar just because they haven’t had to struggle for it.
Very tricky subject, but i’m trying to learn as i go. My daughter is still 4, she doesn’t truly understand the value of money at all yet
Your children will learn by example. If you don’t live that life, they won’t.
That’s a great strategy to teach him. It may not sink in right away but it no doubt left an impression. The thing that taught me the most was simply getting a job at 15 yrs old. Once you start working, esp at minimum wage, the time/money equation gets hammered home quickly.
Yes. especially if your first job is physical labor. You learn quickly.
Pretty cool way to teach him. In my case the equivalent was my first job. Like AF I firmly remember seeing how far my money didn’t go.
And then when you see how much tax is taken out!
I like the idea of making the value tangible and concrete to your kids, I think it brings the lesson home in a way that more abstract ideas can’t.
Thanks for posting this. I’m always interested in seeing how other people approach teaching their kids about money. Its something I struggle with. Being good to your children vs spoiling them, teaching them about the value of money vs depriving them of things you could easily afford. Its a fine line to walk and I find this to be one of the most difficult balancing acts in my life. Unfortunately, its probably also one of the most important. My girls are still pretty young (the oldest is 8), and this is only going to get harder as they get older. .
-Ray
It’s the little life lessons. And teaching by example too!
This is such a cool way. Really enjoyed it, actions speak so well in this case. Going to remember this one and try to apply it one day in a similar fashion.
It really did sink into my son’s mind.
It’s a good lesson to learn. I think you should have put the watch on your son for those last thousand steps on the treadmill, though, haha.
Hard work pays off. But linking hard work to money isn’t always easy when the money is there anyway. My wife and I anticipate the same struggle at some point, though we are far from it right now.
TPP
At your rate TPP, it won’t be that long. I’m interested to hear what other parents do to make that link.
My children have never been materialistic. I’m not 100% sure how we avoided that. They are 17 and 19 yrs old. Maybe they watched me too closely. I do not link money with a good life after one has enough. They likely see how money had afforded me time and ease. Buying stuff rarely mattered. I also rarely shop so they also see that.
I think my young children already get the concept that buying things they can’t really afford will only give them less options in life. And buying things they don’t need ends up as clutter and likely garbage.
It sounds like you really set a great example for your kids!
This is the best example of time equaling money that I can remember reading. I love it! Maybe his next thing will be that he wants you to buy him a treadmill!
Now would that be a Hedonic treadmill or a stoic treadmill?
Wow. Do you have a treadmill at your house? I’m assuming yes, otherwise he wouldn’t have seen you toiling!
We are constantly active in the house. We make the kids walk along the lake all the time (they always complain). We avoid cars. My wife and I take an evening walk most nights and leave the kids at home. They are very aware of how active we are.
What a great incentive by the employer. And way to use that as a teaching point to your son. Next maybe he should do the tracking to earn something on his own to really see what it takes to get something.
Although I think that sometimes it feels like big brother is watching, I have enjoyed the incentives.
My approach to my kids was different. Both of my kids assumed we were middle class because we live middle class. Both kids knew I had no problem saying no. What I did however was encourage entrepreneurialism. One kid wanted to learn piano. That meant a keyboard. She persisted and that meant a used upright. She persisted and that meant a Kwai grand. She persisted and that meant a degree in music. This girl among other things is a professional musician in piano, organ, choir and directing.
The other kid also learned piano and can read music but she wanted to learn guitar. That meant a $300 nylon string guitar. She did not persist, but she learned enough to pick it up a few years later, so it’s presence and ownership had a positive effect. She still plays guitar and piano but only to satisfy herself. Her passion was not like her sisters, her passion is her own.
Both kids were interested in photography. One kid wanted a camera so I got her a point and shoot and she took an online coursein high school. Her photography is all about shadow and light and she has won a few awards. She came to me for a better camera, and then a better camera, and then lenses each time building on her previous experience. She now has a photography business, shooting weddings and events. She taught herself Lightroom and Photoshop and taught herself how to make a website from which she markets her business. The other kid was into iPhone photography. Her take was very different than her sisters. She was into shooting through windows and from mirrors and manipulating the scene and the focus of the scene. She eventually came for a camera which she got. Since she was into iPhone photography for a long time so she jumped immediately to a DSLR and lenses. She also has a photography business. Her technique for marketing is networking. I swear that kid knows people in 50 states and she has a bazillion followers on insta. Both buisnesses make money. They did work for what they got. The work was to engage and succeed not just possess. The intensity of the engagement and creativity allowed for promotion. I wouldn’t trade the experience of watching them take raw material and construct something out of sheer iniative and a little seed money for anything.
It sounds like your kids have a lot of get up and go. My bet is they got that from you.
My father was an auto mechanic. My wife’s father is a commercial fisherman. Growing up broke gave us an appreciation for hard work and the value of a dollar. One of my biggest worries about this new wealth is how to raise well adjusted kids with a similar work ethic. Good job on setting a good example for your son.
I think there are ways to teach them. We just need to be creative. They didn’t see how our parents struggled.
I love it DocG, what a great approach to show him the value of money.
I am always struggling how to drive the point home.