As we were putting away our tools after working on our backyard, John said,

“Dad, I’d like to ask you a question.”

Me: “Sure.”

John: “Please, I don’t mean this to be offensive, but I don’t know another way of asking it.”

I smiled reassuringly and said, “It’s OK. It’s a question, and I won’t be offended.”

John: “Are we financially unstable? The reason I ask is that I noticed that of late, when we’re in the store and I say something is just two or three dollars more, Mom would freak out. And I get it; the times are hard, and things are getting more expensive. But I just wanted to know if we’re financially stable or not.”

Me: “First of all, that was not an offensive question at all. It shows that you’re sensitive to what is happening around you, that is good. And I’m glad that you asked; thank you.”

He smiled in acknowledgment and added, “Also, you have been sounding like your job is not paying you enough.”

Me: “OK. There’s a lot that I can tell you, but first of all, to answer your question directly: no, we are not financially unstable. We can meet our financial needs. About my job, I’m sorry if I sounded like I was complaining about not making enough money to provide for us. What I mean is that my responsibilities are increasing, and I need to increase my income. That’s why I’m doing the extra stuff that I am doing. And it’s OK to want more money as long it’s not consuming you. A lot of good things can happen when good people have more money.”

We laughed. Then I continued:

“About Mom; she is a prudent person, and she’s more of a saver, while I’m more of a spender. But because she’s a saver doesn’t mean she has to operate out of fear, and because I’m a spender doesn’t mean I have to be reckless with money. Neither is better, and that’s how we balance each other.”

John: “I understand. I remember our conversation during our vacation in San Diego, and you said to enjoy memories like this, money must be spent.”

Me: “Yes, I remember. But we have to budget for our spending; we shouldn’t just spend money without planning. I believe that is what Mom is trying to communicate when you ask for something more than we plan for.”

John: “I get it. Uhm… also, I remember how I didn’t get any new shoes after I got those shoes last year.”

Me: “Yeah, I hope you learned from that experience. The original budget could have gotten you two very good shoes, but you used it for one pair. And remember that it was 20% above the budget. Mom even refused, but I made it up and told you that that would be it, and you have to substitute it with your old shoes. See, the two pairs of shoes I bought in San Diego didn’t cost up to 50% of your budget for last year, and they are decent shoes, although they may not be your style. The price tags are still on them, and you can check them. What I’d like you to remember from this conversation is you don’t have to spend all your money just because you have it. Develop the thinking of ‘How can I multiply this money?’ That’s how wealthy people reason. They plan before spending, and even the government, the richest organization budgets. I’m still learning that, and I would like you to learn how wealthy people behave with money. Do you know a simple reason why?”

John: “No.”

Me: “No one has enough money; that’s why even the wealthiest person still works to make money. In economics, it is taught that resources are scarce, so we have to prioritize and spend money on what is most important and forgo what is not. Have you been taught opportunity cost yet?”

John: “No.”

Me: “OK, let’s Google it. Search it on your phone.”

He did, and we read it.

Me: “See, it says an ‘economic principle.’ I didn’t write that. We use it all the time. Do you remember any time that you used it?”

John: “No.”

Me: “Remember during your freshman back-to-school shopping, and you were trying hard to decide whether to get a pair of black or red shoes as your second pair before I eventually offered to buy both for you?”

John: “Yeah.”

Me: “That was the opportunity cost you were practicing because the budget was for an additional pair of shoes and not for two.”

He began to gently nod continuously. So, I asked, “Do you get it?”

“Yes,” he said and kept nodding.

Me: “I wondered why you didn’t find any shoe you like after visiting so many stores and hoped you would not make a similar decision as last year.”

John: “Oh, yeah, I found the shoes I like, and it’s on Amazon, and it’s within the budget. I’d like you to see it.”

Me: “OK.”

He showed it to me. I smiled and said, “It looks good. I’m glad you found what you want within your budget.” He smiled back and said, “Thanks.”

And finally, I smiled again and said, “To answer your question again: no, we are not financially unstable. That’s why we could send you to The Bahamas on a high-adventure trip, but we budgeted for it. I don’t know if I answered your question.”

John: “You did.”

Me: “Good. Any other questions?”

John: “Nope!”

And that ends our financial literacy session for today. See, friends, I like it when my children ask me unsettling questions. I may not always have an answer or the correct answer to the questions my children are asking but the important thing is that we are engaging from the bottom of our hearts.

• 8/18/23