I am a pretty frugal person.  I save where I can, and I don’t have expensive tastes.  So, when I read articles about how to cut your expenses, much of the information does not really apply to our family.  We don’t drink, we don’t smoke, we don’t gamble, we don’t drink expensive coffee,  and we shop only when necessary.  However, there are some things that could go if they had to, and my list is as follows:

1. Newspaper subscription.  We subscribe to a local paper because it covers school sports that my kids participate in.  However, I could always print the articles off online if I had to.  (But the coupons that come with the paper pretty much cancel out the cost of the paper.)
2. Magazine subscriptions.  Our stack of magazines that have not been read is getting pretty high.  I have not subscribed to any new magazines, but the old subscriptions need to run out.  I could call and cancel, but I do still like to read magazines when I don’t  have time to get involved in a book.
3. Gym membership.  The main reason we have the gym membership is for the racquetball and basketball courts.  I have a problem using weight machines after other sweaty people, and I have some cardio machines at home.  We also use the pool in the summer time.
4. Eating out.  I love to eat lunch out with friends as it is my main source of socializing.  If I had to, I could forgo these meals.  However, my family may kick me out of the house after the isolation drives me insane…
5. Travel sports/sports camps.  We spend plenty of money each year on sports-related activities.  However, the cost of the sport itself along with gas and hotel costs really add up.  If we hit a financial crises, travel soccer would be the first thing to go.

Ok, this is probably going to be a short post.  It is more a declaration of victory than an informative, literary masterpiece.

Anyway, last night my daughter was saying she was mad because she was going to miss her favorite tv show because of a certain event.  My husband and I started discussing a DVR,  and if it made sense to get one.  (His birthday is coming up!)

I started checking the internet to see how much DVRs cost, because I actually had no idea.  While I was on the internet, my 16 year old son came in and said “We totally don’t need a DVR since we only watch 4 shows a week”.

What???

I was in shock.  I stopped our conversation right then and there and told him how proud I was of him for coming to that conclusion.  It was incredibly mature, considering a DVR would benefit him.  He said that if he misses a show he normally likes to see, he just watches it online or on-demand.  It was very basic logic, coming from an unexpected source!

It is funny how such a small thing can tell you a lot.  My kids hear me talking about money quite a bit.  I figured my discussions went in one ear and out the other because saving is not nearly as fun as spending, and kids don’t always think about the long term.  However, it appears some of my bits of wisdom may have actually been heard!  Or, maybe he just came to this conclusion all on his own, but I prefer to take credit where I can get! 

As a side note, I had decided not to buy a DVR on my own once I saw the prices.  I thought maybe they were $49.00 or something, that is how clueless I was.  However, I did not tell my son that- I will let him continue to think he talked us out of it.

Have you ever had a moment where you realized your teachings may have sunken in?   Please share!

I often think about the spending habits of different generations.  I have only been alive for 42 years, but from what I have heard and read, previous generations did not seem to be as free-wheeling as people are today with their money.  Well, maybe not going back one generation, but a few generations…

Let me explain.  I spent a lot of time with my grandma, who was born in 1904, and her generation was the epitome of frugal.  They had survived the Depression, wars, and things that people my age cannot fathom nor appreciate.  After she passed, I sorted through some of her items, and she had a little black book detailing each of her expenses.  The items she specified were almost exclusively fixed expenses, there was not much discretionary spending in there at all.

Flash forward many years later to my generation, and it is a much different story.  For many, it seems that ‘extra’ spending takes priority. People pay the minimum on their credit card and then end up buying an Ipad or whatever strikes their fancy.  There seems to be a ‘live for today’ mindset, instead of ‘prepare for the future’.

So what is the reason for such a difference in attitude? I think part of it is how easy it is to spend money. I remember for me personally, I received many credit card offers while I was  in college, and especially after graduation.  Providing a college student with credit can be a recipe for disaster.  It isn’t bad enough to offer credit, but also allowing kids to then withdraw cash from their credit card like they would a debit card can also be destructive.  I did have to resort to that a couple times while I was in college, and I really paid for it in interest charges.  In addition, I remember back to when I was pre-approved for a mortgage.  The amount that we were approved for was way more than we were comfortable spending.  However, I know many people bought houses right up to the upper limit they were allowed.  I would hate to think of where we would be now had we bought a much more expensive house.  We would definitely be underwater given how much house prices have plummeted.  What a depressing thought.

In addition, I think the media may be somewhat to blame.  All these television programs that show the glamorous life of teens and young adults that seem to have it all.  What they don’t show is that reality is nothing like that.  But many people strive for some ‘ideal’ that really does not exist.

Finally, part of the reason I live in a generation of spenders may be that there are so many interesting things to buy these days.  When I was in college, I wanted a Sony Walkman.  I think it cost about 30 dollars.  Now, the items that kids want are way more expensive.  Xboxs, Ipads, Ipods, flat screen tvs, you name it.  These are not small ticket items!  So many kids have television sets and computers in their rooms, and all those items are very expensive.  When my grandma was raising my dad, fancy electronics did not exist.  There was no line item in her ledger marked ‘new laptop for sonny’.   However, I have a feeling that even if laptops did exist back then, my grandma would not be buying one for my dad.

Unfortunately, I know that I too have probably overspent on things I should not have.  I cannot even imagine comparing my ledger (if I had one) against my grandma’s!  At least we do pay off our credit cards every month and our last remaining debt is our mortgage.  But I do know that we could improve too.

I was reading some articles on the internet the other day and one was discussing how not all free money is good money.  In this instance, the author of the article was given ten dollars in extra change at the drug store.  He then gave back the ten dollars as he didn’t want the cashier to get in any trouble.  He decided that the extra ten dollars was not worth the possible consequences, it just didn’t feel ‘right’.  (Good decision!)

Reading that tidbit brought back a wonderful memory of when my husband and I went on our first vacation back when we were 24 years old.  Our trip was all planned out; we were going to spend 3 days in Mammoth Cave Kentucky followed by 4 days in the Smoky Mountains in Tennessee.  We had bought a tent, a little Coleman stove, and had an incredibly tight budget for the trip.

So the night before, I went to the ATM to get the money that was allocated for our trip.  When I got to the money machine, nobody was around, as it was 8 at night.  I walked in the vestibule where the ATM was located, and there was a twenty dollar bill just sitting in the little drawer, waiting for me.  I grabbed the 20 and went outside to see if maybe someone was there I hadn’t noticed on the way in.  (I always look around before going to the ATM.  Seems like a real easy place to be robbed.)    Needless to say, the area was deserted- there was not a single soul I could try and return that twenty dollar bill to.

I have to admit, I was absolutely thrilled that I could keep that twenty dollar bill in good conscience.  I instantly started thinking about what that 20 dollars could buy.  Free night of camping!  Maybe food for a couple days!  It was so exciting.  That 20 dollars seemed like it could stretch forever.  It truly was going to make a difference to us.  That found money obviously made a big impact on me as I still smile 18 years later when I think about it.

If I found that same 20 dollars today, I would think ‘Cool’!  However, it would not have anywhere near the same impact as it did back then.  As we have dug ourselves out of debt and have a more stable life, twenty dollars does not have the same meaning.  We have more discretionary money now, so whereas free money is always good, that extra 20 dollars would probably just go in my wallet and be used for who knows what.  But when we were first starting out, that twenty dollars was like a wonderful gift, and we had plans for it!

So what was greatest amount of money or best thing you have ever found?  How did you use it?