Housing costs: $1,679 (mortgage, insurance and taxes).
Loan payments: $500 in addition to the mortgage principal.
Health insurance: $115.22
Dental insurance: $105
HSA contribution: $540
Pension contributions: $442
Husband’s 401(k): 8% gross + 6% match (around $700 combined monthly – he just started contributing).
Husband’s share purchase: $150
Roth IRA: $580
Union dues: $96
Internet: $76.77
Gas: $74
Electrical: $82
Telephones: $108
Car insurance: $112
Netflix: $7.49 (with ads).
Daycare center: $1,200
Charity: $500
Was there an expectation that you would pursue higher education? Have you participated in any form of higher education? If so, how did you pay for it?
I was expected to study for at least two years. In Minnesota, you can attend college for free during your junior and senior years of high school. My parents encouraged us to do our generals when we were in high school, and all six of my siblings and I did the program. Because I have so many siblings, my parents were unable to finance college for either of us, but they helped us apply for scholarships, grants, and loans. They also allowed us to live rent-free and pay for food if we chose a college near our home and could commute. I was able to graduate debt-free by saving before college, working two or three jobs at the same time while going to school, living with my parents while in college, and working as a graduate assistant in graduate school, which gave me partial tuition reimbursement made possible. I worked an average of 30 hours per week during the school year and 50-60 hours per week during the summer. I recently took several graduate level courses to move up the teaching pay scale to a +30 master’s level, which we funded with cash flow. My husband received a full scholarship to college and was able to graduate with no loans.
What kinds of conversations did you have about money as a child? Have your parents/guardians educated you about finances?
Great emphasis was placed on saving money and not “wasting” it. Money from birthdays (my grandma gave us $10) was put into savings accounts with the intention of using it for college or buying a car. My parents talked to us about how we should make money and that our expenses shouldn’t exceed our income. For several years we created practice budgets as part of our curriculum. I only remember receiving a grant once for a few months and we were expected to donate 10%, save 30% and spend the remaining 60%.
What was your first job and why did you get it?
My first job was when I was 12, as a soccer referee. I was paid $20 per game and paid my parents $5 for the ride and waiting until the game was over. I was a teacher for a few years and also worked as a babysitter from the age of 12. My first job with regular hours was working as a library assistant at the public library when I was 16. I got the jobs to save for a car and college.
Growing up, did you worry about money?
I’ve never been too worried, but I’ve always been aware that money is finite and we don’t have much for extra things. We were a family of nine with only one income: my father worked as a high school teacher and my mother homeschooled us, so the budget was always tight. We only went out to eat a few times a year and mostly used hand-me-downs and hand-me-down clothing. We never had power outages and the bills were always paid on time, but I’m sure my parents struggled to afford everything.
Are you worried about money now?
I’m not sure if I’m worried, but I definitely think about it a lot and keep playing out different scenarios in my head. It’s hard to believe that the money we make now will last. I’ve spent so much of my life trying to save every extra penny and not spend on anything “outrageous” that it doesn’t feel entirely real given the amount we make now. We can save a good portion each month and theoretically have more money to spend, but sometimes I still feel the need to save. Our daughter S. died three years ago as a toddler and I have learned not to take anything for granted. I think a lot about how we can balance saving for the future or an unknown fate with the money we make now to live well and enjoy life.
At what age did you become financially responsible and do you have a financial safety net?
I got married a few months before my 21st birthday and moved into an apartment with my husband K. at the same time, that’s what I would say back then. Except for health insurance, we covered all the costs ourselves. I was still on my parents’ health insurance and K. was on his parents’ health insurance until I got my first job after graduating at age 23. At this point I was paying for health insurance for K., our daughter T. and myself. I know we could get by on one income if one of us lost our job, but it would be very tight. My parents would let us live with them if necessary, but I hope we never do that.
Do you or have you ever received passive or inherited income? If yes, please explain.
NO.
