According to a recent article in our sister publication, the Beijinger, a whopping 86.6 percent of Beijingers under the age of 35 are in debt. It’s easy to understand why. Beijing is a veritable garden of convenience platforms, from Meituan and Taobao to at-home health care services. Combine that with the rising cost of necessities like child care and rent, plus the keeping up with Joneses mentality that social media can incite, and your paycheck evaporates pretty quickly.
So how do we learn to save instead of spend? Are some people just born money smart or is it a skill taught in childhood? According to a 2021 CNBC article, not only can it be taught but children who receive financial literacy training either by parents or students are significantly less likely to carry credit card debt, as well as fewer college loans, and are more likely to save for retirement and achieve financial independence.
Last year, fellow Jingkids editor Cindy Marie Jenkins and I each wrote about our experiences with money growing up and how it shaped us as people, consumers, and parents or educators. Below are a few excerpts from those articles. To read the full text you can visit the original articles here and here.
My (abridged story):
“(As an expat kid my parents) wanted my siblings and I to make the most of the amazing experience that was on offer but they didn’t want us growing up thinking those experiences didn’t need to be earned.
So yes, we had an ayi and a cook but I was still expected to make my bed each morning and clear the table each night. My parents tied those chores directly to my allowance. Forgot to empty the trash cans or put my laundry away? My allowance would reflect that. From the very beginning, my money was tied directly to my work. This has served me well (so far) as an adult and I attribute a lot of my work ethic to those early lessons about the value of my effort.
How I was taught to use what I earned was a direct reflection of their experiences as well. They knew first-hand the value of a savings safety net and they firmly believed in community, service, and giving back. So, for every dollar of allowance I earned, one quarter had to go into my piggy bank for savings, one quarter had to go to the charity of my choice and 50 cents was mine to do with as I pleased. To this day I am still a saver and a low balance on that account makes me very, very nervous. The downside to this was that it took me a long time to realize it was ok to enjoy my money. That getting something I didn’t need but that made me feel good, like a facial or a piece of nice jewelry, didn’t make me irresponsible or selfish. Part of my financial journey has been realizing that you put that quarter into savings and towards community needs so that you can enjoy the other 50 cents without worrying…
The biggest monetary lesson being an expat kid taught me was this. Money is not a magical mystery cure-all. It will not automatically provide you with comfort, security, adventure, or happiness. Money is a tool and you can use it to help you build the life you want.”
Jenkins journey was different and it changed her parenting style:
“The first time I really recall talking to my father in-depth about money was when I got accepted to New York University (NYU) to study drama. We couldn’t afford it. I would have to take on tens of thousands of dollars in student loans in order to do it, and he would too. Accepting my position there meant my father would need to accept his political appointment to a government library position, leaving the public library he’d loved and grown into a bustling part of his community. I remember him telling me how I would be affected by student loans and interest for years to come (and I remember not caring because I’d be a famous director by then, so why worry – oh, the ignorant folly of youth), but I never remember my father telling me how my decision would affect his life and happiness…
In that respect, I parent quite differently. Ever since my kids could ask for things in the store or when LEGO so brilliantly marketed five more sets to them before we finished building the one we’d bought, I’ve explained the concept of money. It takes many years and much repeating, and we’re still teaching them. Especially in our current situation, when their mom is working outside of the home for the first time in their lifetimes, and we have a lot of privilege where we live. Every time they want something, we delve into how much they already have, and do they really need more LEGO bricks when we quite literally stack bins of unused bricks every day?
…A lot of our money discussions revolve around how much we already have versus what we need to save money for, honestly, in adult and child-related talks. When their ayi gifted them RMB 300 in hongbao last new year, we started them on the concept of “Spend 1/3, Save 1/3, and Donate 1/3.” I gave the boys a few options of how to spend their RMB 100, and they chose the LEGO Store (shocker). I remember their disappointment when I showed them where to look on the displays and how to calculate if they had enough for what they wanted.
…The hardest part, honestly, is explaining how working more hours doesn’t necessarily bring you more money in a salaried position, and the importance of weighing mental health, love of a job, and the ability to survive, into decisions made for and with the family when you’re lucky enough to have those choices. I have no doubt our feelings might be different if we were in more dire straits, and I appreciate that fact every day. Our decision to buy or not buy them a lollipop isn’t whether we can afford it, but how it will affect their teeth. That’s another huge privilege that allows us these conversations.
We have a lot of big decisions coming up that mostly revolve around money and happiness and the co-existence of the two, and as hard as the discussion is, we’re dedicated to talking openly about our struggles each step of the way.”
Ultimatly, we all learn different lessons about money growing up. How do you plan to teach your kids the value of a dollar or a yuan?
KEEP READING: Giving Children the Gift of a Gratitude Attitude
Images: Unsplash
