Dollars and Sense

(I may have posted about this system before, but it bears repeating.)

I remember being a little girl and thinking we were rich! I was so happy as a child and had all I wanted. A hardworking and loving Dad. An absolute sense of security and warmth from my Mom. Siblings that were better than any toy ever manufactured. A dining table that always had comfort food as its inviting display. A home that was a constant haven. I WAS RICH! In love and comfort and security. But, as I grew older, I realized that my parents were able to give us the sense of material wealth, because they worked so hard at giving us spiritual and emotional wealth. They had to pinch their pennies as I was growing up. I just never noticed because I was so busy thinking that all those hand me downs were BRAND NEW. Well, they were to me!

I am so grateful to my parents for the time they took to instill in each of us an understanding of making wise choices with money. Their system is one I have now adopted for my own children, which starts once they have their first job (Be it mowing a lawn, or washing someones car, etc). Here is how it works:

Anytime you earn money from a job, for doing a service, a paycheck, you follow this breakdown...

10% Tithes...God always gets our firstfruits.

30% Savings...The kids love watching their bank account grow and grow and grow.

30%Home...I make sure to use whatever they give into the home in a way that they can see its fruits...for example, the other day Karizma helped fill up the family van's gas tank. And Miguel paid for Isabella's birth certificate.

30% Pocket...The kids can keep this amount in their wallets to use as they wish. However, they tend to be competitive about whose savings account is getting larger, that most of the time, they end up putting most of their 30% fun money into savings.

Once they deposit money into savings, they cannot withdraw any cash without prior consent from Mom or Dad. They have to have a good reason for taking any cash out. We start each of them off with a bank account at 6 years old, thanks to Grandma White and her generous birthday checks. This way they can start to develop many wonderful habits at a young age.

Since Tim and I do not use credit, and have never used credit our entire marriage (except for a car payment to our minivan), we are trying to instill the importance of not getting into debt for each of our children. We have already had Miguel read 'The Total Money Makeover' by Dave Ramsey. I think it inspired him to start saving now for his future and his future bride. He is thinking far ahead and I like it! So, if you don't have the cash, then you don't get to have the item. It tastes so much sweeter when you know it is completely yours and paid off. So, they have seen us saving for our passenger van and they know we are going to pay for it in cash. We do hope to have enough by the end of this month. But, we have really enjoyed driving 2 cars. God has rewarded our patience and our wise choice with some really fun times. But, most importantly it shows them that God is faithful to provide. That if we trust in Him, and are good stewards of our money, HE will ALWAYS take care of us! We see Him doing it for us on a daily basis!

The borrower is slave to the lender. When you are in debt to another, you enter into a slave/master relationship with your creditor. (Proverbs 22:7)

Tim and I, and our children, have seen God putting this verse into action over and over and over...

Deuteronomy 28:12:

“The Lord will open for you His good storehouse, the heavens, to give rain to your land in its season and to bless all the work of your hand; and you shall lend to many nations, but you shall not borrow.”

Take the time to instill a plan with your children. The sooner the better. And make sure that the plan you are living now is the example you will be happy to have them living in their future. If not, it is never too late to change!