Save, Spend, Give

When I was seven, I thought writing a check meant you didn’t have to spend money. It was the perfect solution for toys, candy, and anything else I wanted. “Mom, just use a check!” Wouldn’t that be nice if that were true?

The new year marks a time of reflection and for a lot of us, resolutions. Conveniently enough, the new year follows a spend-happy time and allows us to take a good hard look at our financials. Surprisingly enough, at seven, I didn’t have this same mindset. But, why not? I remember learning how to count money in school, but I don’t remember being taught the value of saving, giving, and smart spending. Arguably, the recent economic state dictates I’m not the only one. My parents taught me the importance of being debt free, owning my own home and living the American dream. I think that’s what most parents want for their children.

Instilling the values of smart spending, saving, and giving at a young age can truly pave the path to future financial independence. Nicole Anderson, trustee of LBCF and successful estate planning and business law attorney grew up with that exact structure. When Nicole received allowance or some birthday money, she faced a very important decision. Do I save the money for my dream bike? Do I spend the money on my trip to the store today? Or do I donate the money to the aquarium that I just visited with my parents?

At a young age, Nicole was given the responsibility to make decisions, create a savings goal, and develop a giving heart. Quite obviously, all of those values are shining brightly in her adult life and she looks forward to passing those values onto her two young children. Creating three designated spending jars is a fun and thoughtful way of getting kids to think about money. Something as important as financial independence shouldn’t be an afterthought in education. So, why not start now? Here are some great tips to make the most out of operation: Save, Spend, Give!

• Set Up Goals: Instill the importance of creating S.M.A.R.T goals – Specific, Measurable, Attainable, Realistic, and Timely. Review progress and set milestones for giving, spending, and saving.
  
• Interest – The Good and The Bad: Add a percentage monthly interest to the savings jar. Teach kids the value of savings and have them calculate the interest they’ve earned at the end of each month. Conversely, if you lend them money, use that as an opportunity to teach them the expense of borrowing.
  
• Match their GIVE: Promote philanthropy and encourage young people to learn about their community and the world. Volunteer locally and help educate them on where their donations are going.
  

There are many ways to make spending, giving, and saving a family affair! Have you ever considered opening a family donor advised fund? This is a great tool to get the whole family involved as well. You can set a family mission statement, identify individual passions, setup volunteer days, and learn about financial independence. Let your youngsters take part in the decision making process of granting funds. Kids are never too young to make an impact and teaching them the value of saving, spending, and giving will help them realize that for themselves.

For more information on a Donor Advised Fund, please contact the Laguna Beach Community Foundation.

Contributed By: Rachel Lindsay, LBCF Associate Project Coordinator