Planning for tomorrow

One family home evening, I had my teenagers write down everything they would like to have when they got married — a microwave, TV, computer, bed, lamp, wedding ring, etc. After they had made their list, I gave them the ads from the newspaper and asked them to find the prices of what they had listed (saying they bought everything new), write the price down next to the item and then add up the total. The totals were into the thousands! I asked my children how they were planning on paying for these purchases. Were they planning on using a credit card and going into debt, or were they going to start saving today for what they wanted tomorrow?

Since then, my son has put away money for the mission he is now on, and I have recently implemented an earning contract for my daughter to earn money for expenses of Club Volleyball, school lunches, clothes, etc. She also has an outside job to pay for the rest of her expenses. How much she has for clothes or school lunches is now her responsibility, as there is no loaning of money or rescuing from poor money management. She is learning to work, be responsible, to budget and to spend her money for things she wants, and she is saving for when she gets married. — Pat Talley, Mesa, Ariz.

Start when they're young

For my third birthday, my father gave me $20 and told me that I could spend the money if I wanted to but he preferred that I open a savings account at the local bank and begin a savings plan. That started a lifetime of savings and budgeting. We also had a business and he taught me at an early age to count and deposit money and balance the books. I have tried to teach my children the same skills.

I took my children, at a young age, to the bank and they opened their own savings accounts. This important beginning step gives them pride of ownership and inspires them to save. They love getting their monthly bank statements to see how much they have accumulated. As parents, we provided means for them to acquire money through chores and incentives. As they got older, they added their baby-sitting and job income to their savings plan. When they had accumulated a large amount, we taught them about mutual funds and invited our broker to the house to open mutual funds for each of our children. These funds, we told them, were for large purchases and their college education. While their peers are spending their incomes, our children have been saving their money. Our oldest daughter recently bought her own car, using part of her mutual fund for the down payment.

Through a succession of family home evenings, we have introduced such topics to their training as how to budget their money. No matter how simple their budget, they need to have a plan. The most important, of course, is the payment of tithes and that is set aside first. We are also in the process of teaching them about checking accounts, credit cards, safe deposit boxes, credit reports, 401K plans, the stock exchange, filing tax returns, applying for loans, and insurance. — Janiel Reeve Carver, Rancho Santa Margarita, Calif.

Set good example

Parents must set the example to save and properly manage their money. Begin when your children are young to teach them money management skills, but it's better to begin late than to not begin at all. Teach them to pay their bills on time. If they "borrow" from you, make sure that they pay you back, with a small amount of interest.

In addition, teach them the magic of compound interest. — Wendy Bills, Highlands Ranch, Colo.

Lifetime savings habit

We reared six children, all now married with families. The subject of money management was emphasized in family home evenings from the time each child was old enough to understand what a dime would buy. (Nowadays, it would probably have to be a dollar!) Our teaching foundation came from the scriptures, Mal. 3:10, with the principle of tithing, emphasizing the Lord's promise: "Prove me now herewith, saith the Lord of hosts, if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it."

After tithing, we encouraged two types of savings accounts: (1) A "Put & Keep Account," suggesting 40 percent for missions and college. (2) A "Put & Take Account," with the 50 percent balance to be used at their discretion. The idea is a plan to establish a successful lifetime savings habit.

In short, a method of teaching "a part of all we earn, after tithing, is ours to keep." The results are all the children had funds saved which were used for missions and college. This gave them the personal satisfaction of helping themselves and encouraged frugality, since at least a part of each dollar spent came from personal sacrifice. — Gary A. Higginson, Blackfoot, Idaho

Spiraling black hole

I suggest the following to teach young people:

• Be frugal: Save, rather than spend. Avoid debt. Debt is a spiraling black hole. Avoid it. Delay expenditures. Spend only cash on hand.

• Increase the pay rate: By education and training, develop the capacity to create greater value, thereby increasing the rate per hour that can be expected to be received for services.

• Think ahead; pray for guidance: Young people rarely learn by precept, mostly by example. A parent or leader to whom a person looks for a pattern should be frugal, restrain spending and do all he/she tells young people to do. — K. Jay Holdsworth, Salt Lake City, Utah