Keeping Your Kids From Feeling Deprived in a Frugal Family

Do you ever feel like every other family on earth must make a million dollars a year?

Certainly, when you look at the expensive toys, clothes and activities of the typical spendthrift family, that must be the case.

Even as an adult, it can be difficult to see a friend or family member walk out of their McMansion into their brand new car knowing that their on the way to the mall for a little pleasure shopping before viewing the latest movie at the theater.

As an adults, we can put all of this into the proper perspective. We know that Mr. McMansion has a mortgage with payments through the roof and that shiny new car must have a hefty payment book. The chances are good that the mall purchases and movie will be financed on plastic. We know that all that debt is like a noose tightening around their neck and someday that debt will prevent them from achieving their life goals. We know that by spending within our means and saving part of our income, eventually, we will have a life full of choices and pleasure.

But how do you keep a child from feeling deprived?

My family uses a three part strategy to attempt to accomplish this.

First, we try involve them in our financial goals. Last year we took a wonderful trip to Walt Disney World. We had to save five thousand dollars before the trip. Every expense for the trip would be paid for entirely with cash, no financing. We sat everyone down (the kids were only 5,5, and 2) at the beginning of the planning process and laid out the financial realities of the trip. We would have to make big financial sacrifices to make the trip happen. We helped the children understand that there was a finite amount of money to be spent, so going to Disney meant that spending on a lot off little things like movies, restaurants, some new toys would drop dramatically. They were OK with it. They understood the process and accepted the sacrifices. They even encouraged us at times when we wanted to overspend. The trip is done but the lessons still remain. They know that we spend less so Mommy can be home with them, because we want to buy a house, etc.