Budget wise - from a 12 yr old perspective.

With all the talk of the economy, debts, and how to fix finances...it had me considering the best route to not only keep our family/farm finances in order, but how to teach my kids to budget. We have a few years before our oldest has to worry about college, and a lot of years yet for the youngest, but I know our budget has taken a huge hit for 10 years and still has 10 years to go on my husbands student loan. This is an area that I really am concerned for my children. College has become a requirement to get any type of decent job, not to mention a specialized one.

From our own budget, student loan payments amount to $200 monthly. While that may seem minimal, $200 monthly($2400 annually) is gone from our budget. I don't want my children to be burdened with a $24,000 debt to start their lives. So, we began looking for less expensive, and more cost friendly options. We however, were enlighted with our son's response to his budget assignment for school work. He has decided he will find an accredited online school, where he can get the education he will require, still be able to hold down some sort of job, and pay for the education as he goes. He also said it would be more effective, financially, for him to stay living at home and help with the budget here. His thought is that by saving money on school, and not "paying rent" he can save money so he will never have to actually rent some place and that the money he pays will be investing in his future. While I am a firm believer in teaching my children how to be money wise, he taught me a few lessons on the thinking of his generation(or at least him!). His logic was this: why pay rent when the landlord will be pocketing the money and you still have to save money if you're going to ever own anything. When there is no reason to move out of home, still get a higher education, work and save most of that money to own something of your own. Then any money you put into that place is just bettering yourself and your finances. I can not and will not knock his thought process because it makes perfect sense. While he really hasn't decided on a career path, he knows he wants to stay on our farm and do something with it. He does not want to be stuck in a job that he hates, and he wants to work for himself. For this Mom, it makes me proud! It makes me feel like I have given him the true American dream. The dream of innovation, simplicity, and honestly...the dream itself!

While I can only guess the path our youngest will take, I hope she takes the same path.

So, with our son's logic, here are some ideas on wise budgeting and frugal living:

1.) Instead of attending a highly expensive college, find an accredited online school that will allow you to pay as you go.
2.) Live at home as long as you can.
3.) While living at home and attending online classes, help with finances around your home(offering so much every month.)
4.) While living at home, save a portion of income to pay cash for a vehicle and a home.
5.) You do not have to have the best of anything, you just have to have what you need...there's time later to get better.
6.) Don't be stupid. Learn to budget, save and set goals.


While these are his plans, and theory, I will not disagree with him. He makes very logical points that apply to even those of us that grew up in the 70's & 80's!

I am a proud Mom, who believes that my teachings are preparing our kids for real life. I don't know how many kids today know anything about budgeting, let alone 12 year olds, but our oldest does!!

Until next time,
~Salli~