Finance/Children

Hey Taylor: For some reason, even as my earnings go up, my savings stay flat. I haven’t made any big Taylor purchases or Kovar changes, so I feel like I need some advice on how to save more effectively. - Calvin

Hey Calvin: This is a pretty common phenomenon, actually. If your tendency is already to spend—meaning you have the money personality of a Spender—you'll never save by default. You have to make the conscious decision to save; otherwise, the money that hits your bank account will leave as fast as it arrives. It won’t be easy, but here are some ways to save better.

Think twice… then a third time. Whether it’s ordering the filet mignon, splurging on a weekend getaway, or having the choice to pay for parking instead of driving a little longer to find a street spot, you need to sit through your first instinct. Your initial reaction will almost always lead you astray because paying an extra $10 or $20 doesn’t feel like a big deal, especially as your earnings go up. Unfortunately, as you’re aware, all that spending adds up and suddenly you’ve got nothing left over to put into your IRA. As often as possible, you'll need to talk yourself out of the easy, more expensive option.

Schedule retirement contributions. Part of the reason people overspend is that they feel like money is just sitting around. The solution? Get that money out of your bank account and into a retirement account. At first, you might feel anxious about it, like you need that money to spend and you’re depriving yourself of it. After a while, you’ll start to enjoy investing, and watching your retirement account grow over time is almost as much fun as spending. If you need more motivation, putting money into an IRA is spending! You’re buying stocks and bonds and giving your money a chance to grow. A little change of mindset will help you see the benefit of saving without becoming bored.

Check your monthly fees. From utilities to insurance to every other type of subscription, there’s a good chance you’re paying for something that you don’t really use. Or, and this is just as common, you overpay for a service. When was the last time you looked at your car insurance policy? Or looked over your credit card statement to see what recurring charges are just slipping through your fingers? If you don’t mind spending, you might turn a blind eye to bad spending. Fix that and you’ll quickly save a decent amount of money.

Legal Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901. A sixth-grade teacher recently shared the following story with me: Two girls in her class were making fun John of a classmate Rosemond whose family was struggling financially. The girl was socially awkward and had no friends. The mocking was taking place both at school and on social media. As I read the teacher’s email, I reminisced about what being in the sixth grade was like in the late 1950s, before smart phones, video games, and social media began corrupting childhood. Actually, I have no idea what it was like for girls because girls were the stuff of fantasy only, and believe it or not, lots of boys still had no interest in girls and vice versa. I have, however, talked to lots of women my age who tell me that girlhood back then was not marked by the sorts of personal and social dramas that mark it today. Some girls, I am told (and was aware), formed cliques, but open bullying of other girls was a rarity.

In this case, one of the girls’ parents were intolerant of misbehavior while the other set of parents took great umbrage at anyone who reported it. Teachers walked on eggshells with them for fear of the proverbial hotseat. The teacher in question, however, was nearing the end of her career and was not easily intimidated. A “final straw” incident occurred one day and said teacher informed both girls that their parents would be informed. One begged her not to, saying that she would get into a surfeit of trouble. The other girl basically dared the teacher to tell her parents.

“You’ll get in trouble,” she said, “not me.” Children are very perceptive.

The teacher told both parents what had happened, pointing out that the bullying and teasing had gone on for some time. Sure enough, the latter set of parents became their daughter’s apologists. They denied that she was even capable of such cruelty, blamed her partner in crime for being a bad influence, and implied that the victim was her own worst enemy. They then complained to the principal, who insisted that the teacher to apologize to them. She refused and told the principal that he ought to be ashamed of himself.

The other girl’s parents also became furious, but at the right person. The next day, their daughter apologized to the teacher and to the victim – tearfully and in front of the entire class, no less. She broke off relations with her cohort and began making sincere efforts to make friends with her less advantaged classmate. She also mentioned to the teacher that her smart phone had been confiscated indefinitely.

The heroes in the story are the parents who held their daughter to high standards and forced her repentance. Along with a teacher who stood up for what is right in an environment where right and wrong have become confused, they are to be applauded for making the world a better place. Family psychologist John Rosemond: johnrosemond.com, parent guru.com.

John Rosemond has worked with families, children, and parents since 1971 in the field of family psychology. In 1971, John earned his masters in psychology from Western Illinois University and was elected to the Phi Kappa Phi National Honor Society.