Unclaimed Money

Being content and happy often is a matter of perspective. When you are trying to keep up with Jones’ it is hard to be content. Someone always has something better than you. You will always want more. We rarely need anything else, and should be content with what we have. My oldest son learned a bit of this lesson over the holidays.

He is nine, and until very recently we have owned no game systems of any sort. It isn’t that we find anything particularly wrong about game systems, we just didn’t see owning one as necessary. They are expensive, and it wasn’t in the budget. My son never really cared, until he started playing games belonging to his friends.

Suddenly he was asking for a particular game system over and over. We talked about the cost, and that it wasn’t very likely we would be purchasing one. He kept asking. He did save up some of his own money, and purchased an older, used game system. That stopped the asking for awhile, until Christmas was approaching. Then the new game system popped up again on the Christmas wish list.

It didn’t show up under the tree. A few new (used) games for his system were there though. I really expected him to be disappointed. I feared that he might even throw a fit, but he didn’t. He was happy about the new games, and didn’t even mention the other system.  A few days later he came up and told me that he really didn’t want that other game system anymore, that what he had was really fun.  I couldn’t have been more proud.

I know some will read this and perhaps think we are not very compassionate parents. It is hard to be the kid who doesn’t have the latest and greatest. Yes, we could have squeezed the cost of the new sytem out of the budget, or bought it on credit. He would have been thrilled on Christmas morning,  but what lessons would we have taught him? That you should get everything that your friends have even when it isn’t within your budget? That it is okay to buy something that you really want on credit? No, I am happy with the lesson he did learn; to be satisfied with what he has and what is within the family’s financial means. That lesson will serve him well into adulthood.

Recently, my eight year old son got a lesson on this topic. We were getting ready to watch a movie and the children asked for popcorn. We went out to the kitchen. I went to the cupboard and grabbed a bag of the Aldi popcorn. Kellen grabbed a bag of Trail’s End popcorn. If you aren’t familiar with Trail’s End, it is sold as a fund raiser for the Boy Scouts and marketed as “gourmet.” We received a big box of this as a present, and I had put it up until we finished what we already had in the cupboard. My son really wanted the Trail’s End, so I let him get one out. This is what we were holding.

He took the outer wrapping off the Trail’s End popcorn, and I thought, “That is interesting.” I took the outer wrapping off the Aldi bag. This is what we saw.

“How can this be?” said my son, “They are the same bag!” I explained to him that often manufacturers and processors make the same product for different companies. They just use different packaging, according to what each company wants. You are paying for the name, the packaging, and marketing when you purchase the name brand at a higher price.

I am not sure how much the Trail’s End popcorn was since we received it as a gift. I can tell you the Aldi box of six bags was $1.39. I’m sure the Trail’s End was significantly more expensive. It is good popcorn, no matter how much you pay for it!

I really don’t mind paying a bit more for the Trail’s End because it is a fund raiser. I know I am paying for packaging, a name, and a good cause; not better popcorn! But what about other food items? Are the name brands really different from the store brands, or are they the same thing in a different package? Save yourself some money, buy the store brand!

If you still aren’t convinced, I challenge you to conduct your own blind taste test. Buy the brand and the generic. Have someone else (bet the kids would love to do this) open the container, and place a sample from each on a plate. Look at and taste both products. Are they the same? If not, which do you like better? Then have the other person tell you which was the name brand and which was the store brand. You may be surprised by the results.

Eating out is expensive. Cooking at home is much more economical. With kids, eating out can really take its toll on the budget. Eating out should not be a regular occurrence, if you are trying live frugally or pay off debt, but it is not practical to expect to never go out to eat. Sometimes, you find yourself out and about with out a packed meal, and suddenly there is a car full of hungry, grumpy kids, not to mention parents. (See below for some tips to prevent that.) Sometimes you just want to go out to eat as a special treat. So, when you do dine out, here are some tips to help keep the cost down.

Drink Water
It is amazing how much this will save you. Adult drinks can be up $2 at some restaurants. Kids drinks $1 or more. It adds up quick when you are with the family. Do the kids really need more sugar and/or caffeine? Do check the kids menu closely. Sometimes their drink is included, so you wouldn’t save money by drinking water. Let them have milk or juice if it is part of their meal.

If you do choose to buy drinks, buy the smallest size. Most restaurants have free refills. No matter how thirsty you are you can be satisfied with the smallest size.

Know your Restaurants
Pay attention to their ads and signs. Many places have days when the kids eat for free. A local Italian place here has Two for Tuesdays. Remember them or write them down. Save your special treats for those days. Some restaurants have good deals for kids everyday. Shoney’s gives you one free meal per adult buffet.

Don’t go to fast food.
It really is not that cheap, especially if you buy the kids meals. Yes, you do pay for the toy. You can eat better food (though I’m glad to see some healthier options at fast food places) for the same, or less money elsewhere.

Eat at Buffets
Buffets may not always be an adult favorite, but they are great for kids. Here are a few reasons:
Better food and more options than fast food.
Instant gratification for the kids. They don’t have to wait after they order.
It often costs less than fast food. Younger children often eat free.
Great for picky eaters!

One of our regular choices is CiCi’s. The kids love CiCi’s. We have four children. Two eat free there. We drink water. Our total bill is $22. Another tip about CiCi’s, if they don’t have the pizza you want on the buffet, they will make a pizza to your order, and bring it to your table. Golden Corral is reasonable too. They price kids according to age.

Probably our favorite buffets though are the local ethnic ones. Pricing varies, but at most at least two of our kids are free, some price by age, and usually the adult prices are very reasonable. It is a great place to have the kids try new food. Ours love Chinese. We went with the kids to the local Indian buffet once. I love Indian! The kids were a bit hesitant at first, but found many things they liked. Total with tip $27. We can spend that much on fast food.

Consider how much your kids really eat.
Do your children finish a whole kids meal. Can they share a meal? Younger ones usually can. Often, the adult portion is large enough to share with a child. Another trick, order small sandwiches for all, but share sides.

Avoid Getting Caught Out and About
With good planing dining costs can be cut substantially. Try to prevent getting “caught out and about” at meal time by planning errands between meals. Keep a stash of snacks in the car for those times things take longer than expected. If you need to get something while on the run, convenience food at the store is cheaper than at the drive through.

Eating out is something we are going to do. We can do our best to avoid unplanned dining, and save dining for a special treat. When we do choose to eat out, keeping these tips in mind will help keep the costs under control.

Once all a kid had to do to become a meaningful adult was to be able to hunt or gather food. As we evolved, children had to acquire farming and do it yourself skills and some more brainy ones, like reading and writing -not such a matter of fact ability only a hundred years ago- and a talent for numbers. All that is not enough today: it is necessary to get money management expertise

How can parents instill the value of money and the ability to manage it in their little ones?

An allowance is the best way to teach kids personal finance skills, such as:

• Living on a budget – as they cannot spend more money than they have
• Put some money apart to purchase something big - and learn how to delay gratification
• Deciding how they are going to spend their money – they are making financial decisions.

Even if their decisions are not all wise now, be certain they are learning. They are learning how to survive consumerism and how to tell wants apart from needs; be sure they will be faster to evaluate and take better decisions when they grow. There is an immediate benefit: having their own money and using it as they see fit will increase their self-confidence and sense of independence.