Note from the Editor:
This article was kindly written for the SDC by member Pete M.

Is budgeting a time of the past? Image Credit: Shutterstock

It's so easy today to be flat broke and yet have no difficulty buying anything we want on credit.

‘No deposit and easy terms’, ‘buy now, pay later’, say the enticing advertisements. It's only when you calculate the actual cost of the item after the repayments have been made that you realise how substantially the interest you have paid has added to the cost of the item.

You can even purchase your major items ’interest-free’ for a set period of time, which can be years in the future. Not only are you probably paying an inflated price for the object, but you will be hit with an enormous interest bill and fees should you fail to finalise the payment within the prescribed time.

It seems, these days, you would be considered odd if you were to save up to buy something when you could use your plastic card or take out an instant loan at an inflated interest rate.

Maybe it has been made too easy for us today to really understand how to successfully survive through financial hardship. The ease of getting whatever we want, when we want it, is doing little to develop the value of our own self-control and placing many into serious debt.

The difference between what we see as our real ‘needs’ as against what are our ‘wants’ has become deliberately hazy.

We should be aware we can gain strength of character by NOT getting. We can be enriched by NOT having, and we can gain maturity through our ability to say the occasional NO to ourselves.

I’m Pete, and that’s life.

***
​

Note from the Editor:

Is the art of budgeting a thing of the past? Have you ever used 'buy now, pay later' programs? We'd love to hear from you in the comments below.

We were only able to share this content because of the financial support of SDC Rewards members. If you'd like to see more of this (and a lot fewer ads!), please consider supporting us and signing up for SDC Rewards today—it starts at just 14 cents per day.

 

[Knell]

Exactly! Need/Want!

 

[mylittletibbies]

I have always told my kids to learn to differentiate between your wants and needs
I never use credit, afterpay or any such debt traps. If I want something I pay cash, otherwise I go without and wait until I decide I don't really need it or I have enough money to pay for it.
A family member was saying to me how they had an expensive car, their own home and another block of land.
She was a bit upset when I pointed out to her that what she actually had was a whole lot of interest producing debt, and owned nothing, it all belonged to the bank
A reasonable car, a less elaborate home and forget the block of land they obviously couldn't afford would have made more sense They were so busy trying to outdo their friends.
This was a few years ago now. They eventually had to sell the land during the property downturn at a loss, and downgrade their home considerably when her husband lost his job and of course the flash car is now not such a flash car and needs replacing.
A result of not knowing the difference between their needs and wants. An expensive lesson we all need to learn.

 

[Jarred Santos]

'The ease of getting whatever we want, when we want it, is doing little to develop the value of our own self-control and placing many into serious debt.'

Very well said! I fear losing control, and that extends to finances, too. The thought of being buried neck deep in debt scares me. (Not to say I can't or don't sympathise with people who turn to debt out of desperation)

 

[mylittletibbies]

'The ease of getting whatever we want, when we want it, is doing little to develop the value of our own self-control and placing many into serious debt.'

Very well said! I fear losing control, and that extends to finances, too. The thought of being buried neck deep in debt scares me. (Not to say I can't or don't sympathise with people who turn to debt out of desperation)

Yes, I also sympathise with people who get themselves in serious debt because a lot of them have never been taught the value of money or how to budget.
My mother brought my brother and me up as a single mum, a pretty hard job back in the 50s. Money was tight..My mum was an excellent money manager and taught us to be as well.
My aunt paid for me to go to business college when I was 15. As I was about to start my first job my mother remarried.
My stepfather owned a large cleaning company and said I didn't need to work, he would pay me an allowance.
My mother was having none of this and said I had to learn to make my own way in the world.
I am so grateful to her for this, it taught me to stand on my own two feet and pay my own way.
That's not to say my stepfather was not a very generous man..He bought us horses which we both loved, very generous gifts, paid for my brothers uni education and my wedding.
But our mum was always there keeping us grounded.
Not all people get such a good start in life.

 

[Jarred Santos]

Yes, I also sympathise with people who get themselves in serious debt because a lot of them have never been taught the value of money or how to budget.
My mother brought my brother and me up as a single mum, a pretty hard job back in the 50s. Money was tight..My mum was an excellent money manager and taught us to be as well.
My aunt paid for me to go to business college when I was 15. As I was about to start my first job my mother remarried.
My stepfather owned a large cleaning company and said I didn't need to work, he would pay me an allowance.
My mother was having none of this and said I had to learn to make my own way in the world.
I am so grateful to her for this, it taught me to stand on my own two feet and pay my own way.
That's not to say my stepfather was not a very generous man..He bought us horses which we both loved, very generous gifts, paid for my brothers uni education and my wedding.
But our mum was always there keeping us grounded.
Not all people get such a good start in life.

Thanks for sharing @mylittletibbies!

As it's often said, 'Mother knows best.' Good on both of you

I used to be the kind to paint in broad strokes about things like debt, but then, as you mentioned, not everyone comes from the same background, so I've learned not to be so quick to judge.

 

[upmack]

Yes, I also sympathise with people who get themselves in serious debt because a lot of them have never been taught the value of money or how to budget.
My mother brought my brother and me up as a single mum, a pretty hard job back in the 50s. Money was tight..My mum was an excellent money manager and taught us to be as well.
My aunt paid for me to go to business college when I was 15. As I was about to start my first job my mother remarried.
My stepfather owned a large cleaning company and said I didn't need to work, he would pay me an allowance.
My mother was having none of this and said I had to learn to make my own way in the world.
I am so grateful to her for this, it taught me to stand on my own two feet and pay my own way.
That's not to say my stepfather was not a very generous man..He bought us horses which we both loved, very generous gifts, paid for my brothers uni education and my wedding.
But our mum was always there keeping us grounded.
Not all people get such a good start in life.

Thank you for your informative and inciteful response. My parents brought me up the same way. Pete.

Thanks for sharing @mylittletibbies!

As it's often said, 'Mother knows best.' Good on both of you

I used to be the kind to paint in broad strokes about things like debt, but then, as you mentioned, not everyone comes from the same background, so I've learned not to be so quick to judge.

'The ease of getting whatever we want, when we want it, is doing little to develop the value of our own self-control and placing many into serious debt.'

Very well said! I fear losing control, and that extends to finances, too. The thought of being buried neck deep in debt scares me. (Not to say I can't or don't sympathise with people who turn to debt out of desperation)

Thank you for your response. sadly, the easy availability of 'money' in our society is the problem. Pete.

 

[IAN3005]

Knowing the difference between 'WANTS' & 'NEEDS'.......Therein lies the question.... most people do not know the difference.... that's the problem..

 

[Dennis]

Note from the Editor:
This article was kindly written for the SDC by member Pete M.

View attachment 38884

Is budgeting a time of the past? Image Credit: Shutterstock

It's so easy today to be flat broke and yet have no difficulty buying anything we want on credit.

‘No deposit and easy terms’, ‘buy now, pay later’, say the enticing advertisements. It's only when you calculate the actual cost of the item after the repayments have been made that you realise how substantially the interest you have paid has added to the cost of the item.

You can even purchase your major items ’interest-free’ for a set period of time, which can be years in the future. Not only are you probably paying an inflated price for the object, but you will be hit with an enormous interest bill and fees should you fail to finalise the payment within the prescribed time.

It seems, these days, you would be considered odd if you were to save up to buy something when you could use your plastic card or take out an instant loan at an inflated interest rate.

Maybe it has been made too easy for us today to really understand how to successfully survive through financial hardship. The ease of getting whatever we want, when we want it, is doing little to develop the value of our own self-control and placing many into serious debt.

The difference between what we see as our real ‘needs’ as against what are our ‘wants’ has become deliberately hazy.

We should be aware we can gain strength of character by NOT getting. We can be enriched by NOT having, and we can gain maturity through our ability to say the occasional NO to ourselves.

I’m Pete, and that’s life.

***
​

Note from the Editor:

Is the art of budgeting a thing of the past? Have you ever used 'buy now, pay later' programs? We'd love to hear from you in the comments below.

We were only able to share this content because of the financial support of SDC Rewards members. If you'd like to see more of this (and a lot fewer ads!), please consider supporting us and signing up for SDC Rewards today—it starts at just 14 cents per day.

As I have said before, My motto his If you cannot afford it do not buy it, keep your hands in your pocket look at it, and think our often you would get use of what you are looking at, was it worth it paying by card?

 

[IAN3005]

As I have said before, My motto his If you cannot afford it do not buy it, keep your hands in your pocket look at it, and think our often you would get use of what you are looking at, was it worth it paying by card?

Spot on... I work on the principle 'look at it and allow 3 weeks and if you still have the same burning desire for the items then buy it' if not (which was the case in many instances). Three weeks is the known psychological adjustment period.

 

[Heather W]

On a related vein to this subject of budgeting and delayed gratification, I was just last week talking to one of my daughters and asked the question - "In a cashless society, how do parents teach their children the value of money and how to use it wisely?"
When my children were growing up they initially had chores to do 'without pay' as part of their shared contribution to the family (community) and sometimes were given a coin of their own (reward) to spend (or save) on an outing. As they became older they received a small amount of pocket money for little tasks well done. They were encouraged to "save" for a desired item which we and others would sometimes augment with birthday/Christmas presents or gratitude gifts.
We used to live in inner-city Brisbane and often had a picnic or bar-b-que tea on the banks of the Brisbane River where South Bank now is. The yearly Warana Festival used to be held there also. The children were given $2.00 each to spend (amazing what they could get then) however they wished - treats, rides etc. We provided the main meal for them but their money was their own. They learnt to make decisions and prioritise what they really wanted. Later we went through a very tough period where we lost just about everything that we owned and the whole family took up delivering the local newspaper and junk mail for some extra pocket money. This involved an early rise one day a week before school to fold and bag the papers with other afternoons used to deliver extra junk mail. Again what they earned was theirs to buy what they wanted. Our mantra was, "Isn't it great we can get paid to do our exercise!" We taught them a concept that if they wanted something, such as a piece of clothing, to check it out, try it on and then walk away for a few hours or a day and if they still thought they really wanted it, to go back and get it. If it was still there, it was theirs. If it had been sold, it was never really theirs in the first place. All three of them still say today how much they appreciated these lessons and how they still operate with them as adults.
Again I ask, how can these values be taught in a cashless society when children cannot feel and see the money in their hands, make reasoned decisions and interact with real and tangible transactions? Will prices for any little thing have to escalate because the amount is too small to pay by "card"? Will even wee little children have to have their own credit/debit card to buy their school lunch or whatever?

 

[Ursnpete]

Knowing the difference between 'WANTS' & 'NEEDS'.......Therein lies the question.... most people do not know the difference.... that's the problem..

Sadly, the easy availability of the plastic credit card makes it more difficult for some to differentiate between wants and needs. Pete.

 

[marni]

On a related vein to this subject of budgeting and delayed gratification, I was just last week talking to one of my daughters and asked the question - "In a cashless society, how do parents teach their children the value of money and how to use it wisely?"
When my children were growing up they initially had chores to do 'without pay' as part of their shared contribution to the family (community) and sometimes were given a coin of their own (reward) to spend (or save) on an outing. As they became older they received a small amount of pocket money for little tasks well done. They were encouraged to "save" for a desired item which we and others would sometimes augment with birthday/Christmas presents or gratitude gifts.
We used to live in inner-city Brisbane and often had a picnic or bar-b-que tea on the banks of the Brisbane River where South Bank now is. The yearly Warana Festival used to be held there also. The children were given $2.00 each to spend (amazing what they could get then) however they wished - treats, rides etc. We provided the main meal for them but their money was their own. They learnt to make decisions and prioritise what they really wanted. Later we went through a very tough period where we lost just about everything that we owned and the whole family took up delivering the local newspaper and junk mail for some extra pocket money. This involved an early rise one day a week before school to fold and bag the papers with other afternoons used to deliver extra junk mail. Again what they earned was theirs to buy what they wanted. Our mantra was, "Isn't it great we can get paid to do our exercise!" We taught them a concept that if they wanted something, such as a piece of clothing, to check it out, try it on and then walk away for a few hours or a day and if they still thought they really wanted it, to go back and get it. If it was still there, it was theirs. If it had been sold, it was never really theirs in the first place. All three of them still say today how much they appreciated these lessons and how they still operate with them as adults.
Again I ask, how can these values be taught in a cashless society when children cannot feel and see the money in their hands, make reasoned decisions and interact with real and tangible transactions? Will prices for any little thing have to escalate because the amount is too small to pay by "card"? Will even wee little children have to have their own credit/debit card to buy their school lunch or whatever?

Sadly a lot of school canteens already have the card to purchase. Maybe the reason is so that money is not being handled by volunteers

 

[IAN3005]

Sadly, the easy availability of the plastic credit card makes it more difficult for some to differentiate between wants and needs. Pete.

Then they must pay.......

 

[Maddison Dwyer]

I absolutely loved this post, Pete M. This was my favourite quote: 'The difference between what we see as our real ‘needs’ as against what are our ‘wants’ has become deliberately hazy.'

I would love to unpack this one more... Very interested by everyone's thoughts!

 

[IAN3005]

I absolutely loved this post, Pete M. This was my favourite quote: 'The difference between what we see as our real ‘needs’ as against what are our ‘wants’ has become deliberately hazy.'

I would love to unpack this one more... Very interested by everyone's thoughts!

What you need is to keep body and soul together, every thing else is a 'WANT'...

 

[Brody]

As I have said before, My motto his If you cannot afford it do not buy it, keep your hands in your pocket look at it, and think our often you would get use of what you are looking at, was it worth it paying by card?

I Totally agree. My Physcology is if you can't pay for it in total, don't buy it until you can. I may not be rich, but I manage.

 

[upmack]

I Totally agree. My Physcology is if you can't pay for it in total, don't buy it until you can. I may not be rich, but I manage.

Well said Brody. Pete M.