When Max first arrived, we commented on how little luggage he had - just one suitcase, a camera bag and a backpack. He explained how his parents had agreed that he would leave some things at home and buy new when he arrived, "because things are cheaper in the US." His parents sent along a debit and credit card for his use. He mentioned that he had a monthly budget as well.
Max has learned some valuable lessons about money already. In the first month, he blew through his monthly budget in just a couple of weeks. He went a little nuts on buying "school spirit" clothes. Then the yearbook fee was due. Then he needed soccer shoes for the school soccer team, and then running shoes because the team runs often. We've also made a couple of clothes shopping trips since many of the items he brought didn't comply with the school dress code.
He's commented a number of times of how quickly the money goes, but is always prepared to justify the expenses to his parents. He's also looking at purchasing some electronics while he's here. We've found that the process of getting funds transferred inexpensively has been a bit of a hurdle.
We track all of our accounts and expenses in Quicken and Max has been interested in that whole process. We had an interesting discussion about investments and the difference in risk tolerance between Americans and Germans. He said it seems like Americans have a much higher tolerance for financial risk than Germans. I pointed out the importance of diversifying and balancing a portfolio to withstand the ups and downs of the market. And how to enjoy things in the short term while making long term plans.
We had a couple of "money talks" recently. We struggle with how much to guide him on the finances issue, since it's his parents' money. We started teaching our son about good money management when he was 5. He's now nearly 10 and knows a lot about budgeting his money for the things he wants. So, we're supposed to treat Max like our son, which means at least talking through these decisions and letting him decide how to use "his money." He recently decided to scale back on an order for some optional school soccer team clothes in order to stay more within his budget.
We'll see how this continues to play out during the year.
Max has learned some valuable lessons about money already. In the first month, he blew through his monthly budget in just a couple of weeks. He went a little nuts on buying "school spirit" clothes. Then the yearbook fee was due. Then he needed soccer shoes for the school soccer team, and then running shoes because the team runs often. We've also made a couple of clothes shopping trips since many of the items he brought didn't comply with the school dress code.
He's commented a number of times of how quickly the money goes, but is always prepared to justify the expenses to his parents. He's also looking at purchasing some electronics while he's here. We've found that the process of getting funds transferred inexpensively has been a bit of a hurdle.
We track all of our accounts and expenses in Quicken and Max has been interested in that whole process. We had an interesting discussion about investments and the difference in risk tolerance between Americans and Germans. He said it seems like Americans have a much higher tolerance for financial risk than Germans. I pointed out the importance of diversifying and balancing a portfolio to withstand the ups and downs of the market. And how to enjoy things in the short term while making long term plans.
We had a couple of "money talks" recently. We struggle with how much to guide him on the finances issue, since it's his parents' money. We started teaching our son about good money management when he was 5. He's now nearly 10 and knows a lot about budgeting his money for the things he wants. So, we're supposed to treat Max like our son, which means at least talking through these decisions and letting him decide how to use "his money." He recently decided to scale back on an order for some optional school soccer team clothes in order to stay more within his budget.
We'll see how this continues to play out during the year.
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