A few weeks ago, I gave my son a savings bond that his late grandmother bought him the year he was born. Nineteen years later, the bond was worth $135. My son decided to buy some skateboard trucks, wheels, and bearings, then went and got Mexican food. Then he did a curious thing: he bought another savings bond. While it's not the highest return, it shows he's got an understanding of saving.
I've never hid from our kids that we have bills. When I wrote checks, I'd get all the bills out and pay them in front of the kids as they did homework or watched TV. Now, I simply post the electric and water bills on the fridge after I pay them with Bill Pay. 
Life costs money.
Often the kids will tell me they want something, and then they'll say, "but it's too much money, right?" And I'll explain to them that it's all relative to need. I learned when we had our business that cash is king, and debt is a noose. The decisions I have to make are at times are a matter of balance. For instance, I'd love a new car, but don't want the tax, insurance rates, and registration fees that come with it.
In fact, when we bought the car, a young neighbor came over and said she really wanted one. My husband looked at her and said, "It took me 42 years to afford this car." Incidentally, eleven years later, I still drive that car.
This reminds me of the parent who wanted a Mercedes. Her kids wanted to go to the YMCA and the Boys and Girls Club after school, but she complained she couldn't afford it. I have no doubt she'll get the Mercedes, but her kids will languish at home, playing with MySpace.
I'm mindful that many are in debt because of low-paying jobs and not being able to afford basic necessities. Not every person in debt is there because of greed or keeping up with the Joneses. Some haven't had the benefit of completing their educations, while many had a downturn in business. Others got sick and had a high deductible or no coverage. And, as always, there are those times that everyone experiences: bad luck.
Article comments
1 - Joanne Huspek
You are so right.
I've been on the low end of the pay scale and grew up with a family of seven dining on one chicken, but not this generation. Although we're not wildly rich, I'm embarrassed by what we do have, until I realize that the new poor actually has a lot more than those who suffered through the Depression. Even the so-called poor these days have cell phones and cable.
What I'm trying to say is that unless you struggle through life and debt yourself, you really won't learn anything.
2 - Brian aka Guppusmaximus
Yea... I don't believe it is "alarmist" when California is handing out IOUs for their Tax Returns,yet, they make MJ's memorial & funeral state funded. Talk about priorities.
3 - S L Cunningham
Yes, it really is about balance, and you have given your children good examples of how to appreciate the value of money by learning how to manage need over want. It is the same lesson I taught to my son. Before buying something, ask yourself, "Do I need this?" If the answer is "No," then don't buy. Only after you have taken care of your needs, and have enough left over to splurge a little, you can then reward yourself with a "want." Enjoyed reading.
4 - Kate Kashman
What you say is true, and it makes me crazy! I love the idea of posting the utility bills on the fridge...if only I can get past my love of a clear fridge :) Great article.
5 - Silas Kain
Yea... I don't believe it is "alarmist" when California is handing out IOUs for their Tax Returns,yet, they make MJ's memorial & funeral state funded. Talk about priorities.
What about the millions being spent by the military to build mega churches on bases in the U.S.? Couldn't that money be better spent on the families of those who have fallen in service to this country?
6 - roger nowosielski
"What about the millions being spent by the military to build mega churches on bases in the U.S.?"
That's news to me, Silas. Have you got any references?