You can become a millionaire by wearing dark socks with sandals, arguing with the television during sporting events, and embarrassing your teenage children with discussions about venereal diseases and “boys’ needs.”
OK, not really. But some classic fatherly behavior yields true financial rewards. Greg Karp, a personal finance writer who weighed in on a big discussion on this blog about “What a Cheapskate Will Spend Money On,” examines the point at which classic dad advice and financial wisdom meet in the Chicago Tribune. For example:
“Shut the door, I’m not paying to heat the neighborhood.”
This joins such classics as “Were you raised in a barn?” “Who left these lights on?” and “Do you think I own stock in the electric company?” Dad might favor energy savings for environmental reasons, but more likely he can’t stand wasting money. And he knows lowering fixed costs, such as home utilities, is a great way to spend less. Once grads are on their own, they would be wise to use compact fluorescent bulbs, reduce water use and complete simple insulation and weatherization upgrades. Some of your biggest savings, however, don’t come from one-time tricks but from daily habits. So, be moderate with the thermostat and, yes, turn off the lights when you leave a room.
And:
“I’m not made of money.”
This might be accompanied by the rhetorical “What do you think I am, a bank?” or “You’ll realize the value of money once you start earning some.” Once graduates are on their own, they’ll have to establish their money boundaries rather than extend them with careless borrowing, especially on credit cards. Dad is hinting at the best spending tip that dwarfs all others: “Live within your means.”