Today’s fantastic family finance article is:
When you’re thinking about money in absolute dollars, you might have a conversation like this:
Me: “Hey, can I have $20?”
You: “What? Are you crazy? That’s a lot of money!”
When you’re thinking about money in relative dollars, you might have a conversation like this:
Me: “For just 4% more, I’ll throw in this super fancy case for your phone!”
You: “Yeah, sure. Why not? That’s a small fraction of the $500 I’m already forking over!”
See what just happened there? The same $20 magically became less valuable in your head. Jedi mind trick. Salespeople play it all the time.
Teach your kids to resist the relative money mind trick. Teach them to ask: “Would I consider this a lot of money if someone simply walked up out of the blue and asked me for it?”
Teach your kids $20 is $20. Period.
Get tomorrow’s tip here.