Managing Tax Dollars

My parents believed in teaching me money management skills at a very young age.  For as long as I could remember, I had a weekly allowance.  When I was five, my allowance was $5.00/week.  Believe it or not, that more than lasted me a week and I saved most of it.  Also, I usually ended up saving more than $5.00/week.  My mom smoked and cigarettes were $.86/pack.  When she ran out, she would give me a dollar to go to the store to get one for her and I would pocket the change for my troubles.  (How times have changed!)  When my dad would take me to the curling rink to watch him curl, he would give me enough money for a bag of chips and a pop.  I would eat other kids chips and drink water from the fountain.  This added up plus change that I found in my mom's purse and my dad's pants as well as gifts from family.  I did well.  

One day, when I was 5, I came across a beautiful doll that literally took my breathe away.  I had to have this doll.  But, I couldn't quite afford it.  I was convinced that my mom would see how much I loved this doll and how I wanted it more than anything, and would be overcome with the motherly instinct and just buy this doll for me.  That didn't happen.  Instead my mom asked me how much I had saved up to use to buy this doll.  I failed to see how that was relevant to the conversation.  I was her precious Princess and I wanted that doll.  The solution was simple.  Just buy me the doll.  

My mom just wouldn't give in and she told me that I already enough dolls and this doll was a "want" and not a "necessity" so if I really wanted it, I had to be prepared to pay for it.  I was outraged but still pretty committed to this once-in-a-lifetime doll.   I told my mom how much I had which was about $15.00 short of the price.   

I was positive that my mom would appreciate how much I wanted this doll and would be so impressed with my sacrifice that she would now buy it for me.   Unfortunately, it didn't end there.   Now, my mom said she would give me an advance on my allowance but since this would be a loan, I would have to forego my allowance for four weeks.  In my mind, this was simply highway robbery.  I couldn't believe my own mother would take advantage of me.   I needed to go above her head and negotiate with someone that I perceived had more power.  I demanded we go to my dad's office.

When we got there, I gave my pitch concentrating most on how much I loved this doll and I would be happy forever if I got this doll and I would never ask for another thing for as long as I lived.  I was pretty impressed with myself and I was convinced my dad would be so moved that he would just run out and buy this doll for me.  

And then, I was thrown another curve ball.  My dad was only willing to give me a loan as well. Except his terms were foregoing by allowance for 6 weeks.  He had to charge more because I was interrupting him at work.  

I couldn't believe I had such mean unreasonable parents  I would have cried but I was too busy thinking.  My parents said they could actually see my mind working and after five minutes of silence, I finally responded.   "When are we going to see grandpa next?"

So, in the end, almost everyone got what they wanted.   I got my beautiful doll without spending of my own money.  My grandpa got the satisfaction of my happiness and undying love.  My parents got out of giving me money and thus showing their true colours of being mean.  

When I look back on this story, I can't help thinking about our approaches to government.  As a collective, we demand certain action oblivious to the fact that it may not actually be a need but a want.  The government agrees to our project but in return asks for more money in the form of tax increases.  Or the government agrees to our project but they want to plan for it.  They want the opportunity to ensure they have enough revenue to accommodate it or it means they have to look for some other expenditure to cut.  Usually, we are not satisfied with that, so we appeal to another level of government to get what we want.  While we may be successful, we foolishly think that there was no cost.   

There is no such thing as a free lunch.  In my case when I was five, I learned that I just had to bat my eyes and my grandpa would get me what I wanted.  That may have given me instant gratification, however, I probably would have been more satisfied in the long run had he used that money for an education savings account for me.  And, his generosity delayed me learning some important life lessons.   Sometimes, you appreciate the luxuries in life more when you work for them rather than someone giving them for you.  Everyone needs to understand the differences between what we need and what we want.  If we focus on what are our needs, we may not need to sacrifice for our wants.  Sometimes long term reward is worth way more than instant gratification.  The more you get used to instant gratification, the more you want it.  It creates a vicious cycle.   Also, you can easily get yourself in trouble by putting all your eggs in one grandpa, I mean, basket.  

Maybe managing tax dollars isn't as complicated as it seems.   It might be just common sense.   A five year old might be able to figure it out.