What We Teach Our Kids About Money: Part 2

Last week, I published a post that talked about the things we do to teach our kids about money. Since it turns out that we actually do quite a lot of things to teach them financial literacy, today is Part 2 of What We Teach Our Kids About Money. If you missed Part 1, read it here!

What We Teach Our Kids About Money Part 2--www.thethreeyearexperiment.com

We Give Them Age-Appropriate Books to Teach Them Financial Literacy

We were given an old kids’ toy book from Chick-Fil-A many moons ago, called The Super Red Racer: Junior Discovers WorkTurns out, it was from a Dave Ramsey series of books for kids that taught about different financial topics like saving, giving, and investing. Junior ThreeYear loved the book so much that we eventually bought him the whole series for Christmas one year.

Those books have gotten a lot of traction. Continue reading “What We Teach Our Kids About Money: Part 2”

What We Teach Our Kids About Money

Parenthood is a big responsibility and I feel like I’m messing it up a dozen times a day. When it comes to teaching our kids about how to manage their money, though, I feel like we really need to get it right.

What We Teach Our Kids About Money--www.thethreeyearexperiment.com

Mr. ThreeYear and I got out of debt by following Dave Ramsey’s baby steps, and we also listened to what he had to say about kids and money. He has a lot of great advice when it comes to teaching your children about financial matters, so we started there. But money is such a complex and important topic that we certainly didn’t end there.

Here’s what we currently do to make sure that our kids have a good relationship with their money.

We Give Them an Opportunity to Earn Money

Ramsey recommends giving your children, at as young ad 3 years old, three jars in which to put their money: Save, Give, Spend. We made jars for the boys early on. They have the opportunity to earn money by doing their chores every week. They can earn up to $6 per week for doing their three chores (these are age appropriate chores–for my 10 year old, it’s making his bed, clearing the table, and doing his laundry each week, and for my 7 year old, it’s setting the table, making his bed, and tidying his room). If they don’t do their chores, they don’t get paid.  Continue reading “What We Teach Our Kids About Money”

How We Plan to Double Our Net Worth in 3 Years

I started this blog almost a year ago to document our family’s journey toward location independence over three years. We picked a three-year time frame because it coincided with several significant events in our family’s life: our oldest son finishing sixth grade, my husband turning forty-five, and me turning forty.

How We Plan to Double Our Net Worth in 3 Years

We love to travel, and we also have family who live in two different continents, so becoming location independent would allow us to spend a few years, before our boys start high school, living in an international location, or traveling between our respective families for a few years.

In order to make our plan work, we decided we would need to double our net worth and find jobs that would support us during our travel time. While doubling our net worth could allow us to live on 4% of our investments at a certain spending level, we know that with our current spending plus the need to fund two college accounts, we would prefer to have employment during our travel years, preferably employment that provides health benefits.

While we’ve talked about other aspects of our plan, we haven’t delved into how, exactly, we plan to double our net worth. So I thought I’d walk through our plan in this post.

Year 1 (roughly 33% increase):

We have almost completed Year 1 of our Three Year Experiment. This year’s focus was on paying off the last of our debts and funding some major home repair projects, all while saving and investing to grow our investments and decrease our debts.

I don’t know if we’ll increase our net worth by the full 33.33% this year, but we’ll likely be close. Here is where the majority of the gain has come/will come from. Continue reading “How We Plan to Double Our Net Worth in 3 Years”

Are You Camp Earning or Camp Saving?

I have subscribed to Ramit Sethi’s emails for years, ever since he was a fledgling blogger at I Will Teach You To Be Rich. His websites are now slickly professional and he runs a multimillion dollar empire, selling courses on how to increase your earnings. I’ve never bought a course, but his emails are full of advice about negotiating and growing your business, and he writes compelling headlines (if you don’t believe me, sign up and see what I mean). He’s helped thousands of people earn more money in their businesses.

Are You Camp Earning or Camp Saving--www.thethreeyearexperiment.com

Three days ago, he sent out the email, “What Successful People Don’t Tell You.” It linked to an article by the same name. The premise of the article is that people who truly love their jobs will never stop working, no matter how much money they make, because “you would enjoy being on the beach for about 3 weeks…then you would get bored and want to get back to work.” Apparently everyone that this guy has ever met who’s made big money feels this way. Okay. Let’s accept that premise for a sec.

Ramit goes on to slam the FIRE community, for delaying gratification and staying at a job they potentially hate, eating rice and beans, and leading colorless, boring lives (including WALKING as a hobby for God’s sake), only to retire early and then have no purpose for the rest of their lives.

Apparently, there’s a subreddit detailing the dark underbelly of FIRE, which is that once people have sacrificially saved for 14 years, they then have no purpose beyond amassing their $600,000 so they can live off the $24,000 a year in perpetuity.

The article ends by asking you to pick a camp: Continue reading “Are You Camp Earning or Camp Saving?”

How to Save Money When You’re Not a Saver

Raise your hand if you’re a saver. You know, you never spend money. You’re biologically opposed to pulling out your wallet. You’ve got thousands squirreled away in a savings account somewhere, and you’ve built it up almost without thinking about it.

How to Save When You're Not a Saver-www.thethreeyearexperiment.com

I bet you grew up in a frugal family, right? Did your mom always pack sandwiches when you went on road trips? Did you rarely, if ever, go out to eat? When you did, the whole family ordered waters and split entrees. Am I close? Did you live in a modest ranch your whole life, wear hand-me-downs, and ride in the same car for a decade (that your parents paid cash for)?

I’m not making fun. No way. I’m actually a little jealous. Here’s why: you had the best possible education growing up. Your frugal family taught you how, almost without thinking about it, to spend less than you earn. You feel trepidation–a healthy fear–towards buying stuff, and you instinctively pause before buying a material item, and think about whether you actually need it or not. Continue reading “How to Save Money When You’re Not a Saver”

How We Spent $0 on Clothing Our Kids This Year

If you have kids, you know that outfitting them can be a challenge. Kids grow so quickly that they can sometimes shoot up a size overnight. This growth magic apparently happened to my youngest son night before last, because yesterday he told me, “Mom, I can’t button these jeans. They’re too tight!” Because I heart hand-me-downs, I pulled out my Voodoo-Overnight-Growth-Thing-Happened-Larger-Sizes-Clothing Container.

Box of clothes--www.thethreeyearexperiment.com
The container!!

I’ve heard people say (ok, it was actually just one), “I would never let my child wear someone else’s jeans. That’s just gross.” No, that’s just ridiculous. Continue reading “How We Spent $0 on Clothing Our Kids This Year”