Three Financial Decisions I made as a Kid
When I talk to parents about their first money memories and experiences they want to share with their children, they often mention wanting to start discussing teenagers getting their first job.
However, studies show that by age 7, we have formed beliefs about money.
Here are three financial decisions I made as a kid.
Money is the gift that keeps on giving!
My first money memory is when my grandpa gave me $5 for my fifth birthday.
At first I was annoyed it wasn’t a toy. But days later, my mom took me to the pharmacy and it was the first time I looked at price tags. I carefully chose a Rainbow Brite stamp for $2.34. I gave the cashier my $5 and she gave me change.
Then my mom took me to the bank to deposit the change in my savings account. And I received a sucker and sticker book at the bank. Money was the gift that kept on giving!
Instead of “It’s Too Expensive!”
I remember being about 10 years old and I was grumbling that we were driving to visit grandma instead of flying. Instead of telling me that it’s too expensive to fly, my dad had me walk through the steps that helped him make that choice.
My dad had me call the airline for a quote for 5 tickets from Chicago to Oklahoma City. I think the ticketing agent was a little surprised to hear such a young kid on the line. And this was before the internet, this is how you bought airline tickets! Okay, so I had the price. Let’s call it $300pp or $1500.
Next, my dad gave me an atlas, told me the car’s MPG, and we drove by a gas station to see the latest price. Again, this is before the internet! I painstakingly worked at the kitchen table to estimate between cities and look at the route. The price of gas was about $110. And you best believe we did that 12-hour drive in a day, so no need to budget a hotel.
Instead of telling me “it’s cheaper to drive” he had me do the math. Then we had a talk about how we could fly to Grandma’s OR we could drive to Grandma’s AND take a weekend ski trip. The choice was clear to me!
Side note: I just redid that math so much faster with the use of AI and price estimates for the early 90s.
My First Loan Application was a Powerpoint
Cut to age 16, and I was ready to buy my first car. I started working summer jobs at age 14, and savings was an important lesson in my household. So I had $800 saved up to purchase my first car.
However, it was slim pickings in that price range. My dad would take me to see these cars and test drive them with me. It was clear that an $800 car wasn’t worth getting…and I didn’t have the extra money for registration and insurance. If only I could get a loan from the Bank of Mom and Dad.
First I tried by pledding my case, “It’s normal for parents to buy their teenagers cars! Can’t you just be normal?” That didn’t work so well.
The Bank of Mom and Dad wasn’t out there giving grants or forgivable loans. Underwriting was tough. My parents asked, “How can we trust that you will pay us back?”
So, I jumped onto the family desktop computer and opened up Powerpoint. I designed slides about how much I had made the last two summers, how much I had saved, and how much I could estimate making the next two summer.
After the pitch, I was awarded an $800 loan and bought my first car. A 1981 Volkswagen Cabriolet. My mom kept track of my 0% interest loan (the terms were generous) on a ledger in the inside of a kitchen cabinet.
I paid off that loan in less than a year and drove that car like the freedom is represented.
These were three meaningful money memories for me and shaped the way I make financial decisions to this day.
If you want yours kids to grow up to be confident with their money, check out our latest workbook, Financial Clarity & Financial Confidence for the Whole Family Workbook.
