Brokanomics mentality is instant gratification in action: It creates a void of understanding to those who decides to partake in its procedure. It does not deny anyone the right to utilize its weighty consequences. It creates a sense of satisfaction and gratification upon use.
However, the effects are deadly and cause irreparable damage: Presumably seven years of bad credit after the mess is cleaned up.
Brokanomics is not hereditary; it is simply demonstrated then instilled in your children for their future failure. It is not purposely taught. We as parents do not purposely encourage little Johnny to want without thought.
Using two simple illustrations, I want to discuss how the mentality is passed from generation to generation. And later review how the curse can be broken.
It begins with a parent purchasing a toy, pack of gum, or some inane object the child is screaming for with an immediate shout, “ I can’t even afford it!”
The parent then whips out a rectangular piece of plastic from his or her wallet and proceeds to pay for the object. The child now equates screams with new object. Worse yet, the child equate no money means rectangular plastic will do the trick.
Each time the child and parent is at a store the process continues until they reach teenage years. Teenage years are financially unbearable on the parent because the child was never told "no."
The child also has no financial limits. The child now demands new clothes, money for the movies every weekend, hang out money when they go their friends house, money to buy lunch at school, money to get the latest styles, and money just to have money.
Now the child is being called irresponsible, ungrateful disrespectful or lazy.
Another scenario is the child does not scream or yell in the store because manners and respect are highlighted and encouraged.
However, toys the child wants are always given. Birthdays and Christmas are littered with a ready-made list of toys and frivolous object -- most broken the day after or within the week of playing with it one time.
They hear the parents talk about never having enough money to pay bills but, they eat out constantly, they attend the movies regularly, their closets are littered with clothes, they to the mall all the time, and they have that annoying cellphone with a monthly plan.
However, parents constantly say, “I can’t afford that”, “Wait till next paycheck," “You know we can’t afford tutoring,” “What $75 a year for my kids to have a safe place to be?” There's also, “The teacher said you need a graphing calculator, what do they think I'm made outta money?"
Each asinine statement resonates in the mind of your child as normal behavior. The only thing of value are the things that I can touch, feel, see, make me feel good, and look fabulous: Brokanairism at its finest.
The true failure is when the child grows up to repeat the brok-a-nomics mentality and never understands why he or she is in debt and can never stop the cycle.
How does one stop and or reject such mentality?
Pride is the ultimate culprit for brokanairism! We may not want to keep up with the Jones anymore because this generation really do not want to hear what anyone has to say about them. However, to look like Kim Kardashian, dress like Paris Hilton, sport the bling like 50 Cent and have cars running on dubs (20 inch rims), then I have truly arrived.
Arrived you have, in the poor house.
Set financial limits: No means no.
It is not that you can’t afford it. It simply means it is not something you need or want. Let them decide if they want it by saying “I really do not believe you need this but, if you want it then this is the only thing I will be buying this week that you want." Then stick to your guns.
If you are the brok-a-naire, leave your wallet at home. Carry cash. Carry $20. No one ever wants to break a twenty.
Teach financial responsibility: Give the child or yourself enough money to spend for that week. If it runs out, then you and/or he get no more. If you do not eat the free lunch at school, then eat when you come home or better yet, pack a lunch.
Go on a spending fast: Stop spending! That is a thought unlike any other thought. Literally stop spending for a week. If it is not a necessity, do not buy it. Put the cards and cash away. Then count your money at the end of the week.
Repeat until cured!
Remember, you have to make sure you are looking for the future. Oh wait a minute, if you have a brok-a-nomic mentality you probably wouldn’t have read this far. So if you did read this far, then you're not it -- its probably your friend.
Pass this blog along with this message: Friends don’t let friends retire broke!
Take care and God Bless...