Share, Save, Spend

Having just attended a conference with Nathan Dungan (author of Prodigal Sons & Material Girls: How Not To Be Your Child's ATM), I wanted to share some thoughts on his important work:

Notice that:

It is share first, save second, and spend third...

"SHARING comes first because it offers the most effective counter-rhythm for all the messages on spending...the overwhelming majority of messages young people receive only tell them to spend it as soon as they get it and more specifically, to spend it on wants. Emphasizing sharing first reminds kids to look around and develop sensitivity to the needs of others.

SAVING is defined in broad terms to encompass all short- and long-term goals on your child's radar screen... By building routine into their saving process, you reinforce the concept of deferred gratification. Again, rarely do young people hear messages espousing the value of saving... It's always about getting something today.

SPENDING. By placing spending last... you put psychology to work. It's a simple way of reminding you to give attention to sharing and saving before you jump to spending... Spending is the easy part... help your child achieve balance." --Nathan Dungan

The whole point of "share - save - spend" is pointed out at their website:

Our Mission

To help youth and adults achieve financial sanity by developing and maintaining healthy financial habits.

Our Goal

Help people understand the relationship of money, values and habits in today's hyper-consumer culture and, in turn, provide resources/tools to assist them in achieving financial sanity.

Problem

The social and economic impacts of hyper-consumption are and will continue to be extremely problematic for present and future generations.
• Young people 18 and under will spend and influence the spending of more than $1 trillion dollars this year
• Young adults (25 and under) are now one of the fastest growing segments filing for bankruptcy
• Average credit card debt per U.S. household is nearly $9,000
• Average after tax U.S. savings rate has plummeted to 0.2%
• College students have on average 4 credit cards and $3,000 of credit card debt
• Children today spend FIVE times more money (adjusted for inflation) than their parents did at the same age

Solution

Establish an ongoing dialogue with individuals using the Share-Save-Spend™ resources. Past research suggests that when people shift from a spending mentality to one that focuses on sharing and saving they will evidence healthier values and more happiness.

It is good stuff. More to come...

Look here for an easy calculator to determine how much giving 10%, saving 10% and living on 80% would be for any amount entered.