Dear Dave: My husband and I began your plan a few months ago. We love the process of living on a budget, and how it has helped us gain control of our finances. Our kids are 14 and 13 now. Do you think it’s a good idea to include teenagers in budget meetings and financial discussions — Paula
Dear Paula: This is a great question! As long as you’re not in an extreme situation, like you’re looking at foreclosure or bankruptcy, or you’re on the opposite end of the spectrum sitting on a pile of wealth, I think it’s a wonderful idea. Teaching kids about money with a standard, regular, monthly budget is one thing. But as a parent, you don’t want to put your kids into situations they aren’t emotionally equipped to handle.
As long as mom and dad are having a discussion and making decisions — not fighting — it’s good for kids to hear the give and take where handling money is concerned. Parents who never let their kids handle money, and never teach them proper money management techniques, run a high risk of turning financially irresponsible adults loose in the world. And that’s no good for anyone.
But walking through a typical, normal budget will show them how much money is coming in and how much things cost. They’ll see on paper exactly how much groceries or the electric bill costs. Then, when it’s right there in front of their eyes, they’ll begin to realize why mom and dad always tell them not to waste food, and to turn off the lights when they leave a room! — Dave
Hang Around for
Benefits?
Dear Dave: I am currently serving in the military, and I’m not sure I like the life, or what I’m doing, as much as I did a few years ago. Recently, I was approached with some exciting opportunities outside the military in a different field. I’m not sure what to do. Do you think I should make plans to take advantage of these new opportunities, or should I stick with the military and receive full benefits when I’m eligible to retire in 10 years? — William
Dear William: There are people who absolutely love the military. It makes a great career for some folks, and I think that’s awesome. God bless them — and you — for serving their country that way. But whether you’re in the military or a civilian, I think you should do what you love doing.
If you were just a few months away from retirement, I’d probably tell you to bear down and tough it out. That way, it wouldn’t be too long before you could explore the new opportunities and have a nice pension coming in. But 10 years is a long time to do anything when your heart’s not in it.
Long story short? If you love it, stay. If you don’t, get out. Serving in the armed forces is voluntary, and in a sense, that makes it a little like other jobs. Regardless, hanging around for a decade in a job where you’re miserable just to collect benefits? That’s not a good plan. — Dave