American parents are spending upwards of $500 billion a year to support their adult children. Two-thirds of us are actually sacrificing our own financial security by providing the support. Others of us struggle with the worry that, by providing a financial crutch, we may actually be harming our children in the long run by not encouraging more responsible behavior.
In a study of the relationship between spending choices and happiness, analysis of the data revealed that personal spending was not related to happiness, but higher levels of giving was significantly related to higher levels of happiness.
Perhaps you’re finding yourself in a situation similar to mine. My bright orange 2004 SUV has seen better days, and I’m tired of its never-ending need for repairs. Time for a new car! But there are decisions to be made. What make? What model? And, importantly, should the next car be leased or bought? Here are some key questions to help guide the decision.
In the world of personal finance, “appreciation” has two important components: 1. In the quantitative realm, appreciation refers to the increasing value of financial assets. 2. In the qualitative realm, appreciation refers to feelings of gratitude for one’s financial resources and circumstances. Of course, both elements are extremely important, but it is actually the more qualitative “appreciative mindset” that is the best predictor of both increasing wealth and personal well-being in our lives.
We are all guilty of referring to our “wants” as needs, such as “I need a new outfit for the party.” We are human, after all, and we desire pleasurable things and push away unpleasant things. The problem arises when, in pursuit of pleasure, we put our security, and our values, at risk.
The people I work with have “enough” by most metrics: food on the table, a roof over their heads, access to health care services, not to mention cars, televisions, clothing and various forms of entertainment. Yet most remain anxious about their money, worried that it won’t last no matter what their level of wealth.