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Financial Friday: A Penny Saved is a Penny Earned

| October 05, 2018

Financial Friday Vi-v-e-o

Living in a society of instant gratification is hurting ourselves and our children.

Focusing on the value of the dollar is something we all must do more often.

You must stop and pause for a moment to think before turning over your hard-earned money. We have a choice to spend those pennies or do as Vivi said and choose not to. 

You must look at the slow leaks… the $3-$5 daily purchases seem insignificant but add up exponentially.

You must retrain your brain by changing your inner-voice.  Instead of saying “no” to yourself, tell yourself “Great job for showing willpower! Just like Vivi said, it’s like I earned it twice”.  The only work you had to do was realize “I do not NEED to buy and add another “thing” to my life to be happy”.

In a world of buy now pay later, you must teach your children to have this same inner voice.

Here are a few tips to help:

  • Show the children in your life Vivi’s Viv-e-o and start a conversation by asking them what they think “a penny saved is a penny earned” means.
  • Tell them that mommy/daddy work hard for this money.  If you are a grandparent, talk about how you had to save for retirement and your money must last as long as you do.
  • Have the child repeat the money saying several times.  This will help them remember the conversation.

This conversation is so important because you will refer to it when they are wanting to spend your pennies!

Next time you are at the store and the whining for this or that starts, you can remind them of what they learned from Vivi’s Viv-e-o.

The conversation is a distraction from the object and helps them understand the why behind the “no”.  There is nothing worse than being told NO without a reason – right?! Now that you can clearly explain to them the reason, they are much more accepting of the no.

When you cave in and say yes to their wants you are creating the bad habit of impulse buying. Saying no is much harder than saying yes. You must INVEST time to not do what is easiest. 

The asking may never stop, but typically they know what your response will be and will eventually accept it without throwing a tantrum.

It is better for them to learn this lesson by throwing a fit at Target at 3 or 4 rather than at 34!