Buy the orange shoes
2 money lessons from 1 dad that all kids should learn
I got my first job when I was about 10, when my dad hired me to work on our farm. It was hard work.
I irrigated fields in the blazing sun, milked irritable cows in the wee hours of the morning, harvested corn and hay and anything else that needed doing.
My dad was my employer, but he was also my bank. Instead of paying me on Fridays, he gave me a piece of paper that showed me my balance and savings. He would then scrutinize my purchasing decisions and had the final say on whether I got what I wanted.
His intentions were pure. He was trying to teach me how to make smart decisions with my money. When I was in the eighth grade, for example, the top tier of cool footwear was Nike Airs. I desired them with my whole soul, and decided that I was finally going to get serious and demand that my dad fork over the cash I had earned.
We went to the shoe store, I showed him the pair I was lusting after and waited while he studied them and looked at the price tag. “You know,” he said. “I saw these exact same shoes at Costco for a third of the price.”
So we drove to Costco. And there were piles of Nike Airs at a big discount. The only problem was that they were all bright, blazing orange. Of course they were cheap. No kid dreams of walking around with pumpkins on his feet.
I ended up buying them anyway, and our unique employee-employer bank relationship continued until I left for college.
It wasn't until I was ensconced in my dorm, a free man at last, that I realized the two fundamental lessons that all those years of penny pinching had taught me and that all kids should learn.
1. Experience is the best teacher
My dad had intended to drill me in the virtues of frugality, but the fact that I never controlled my own money meant that I never learned to manage it. You learn from making mistakes, and I wasn't allowed to make them.
The second I got out on my own, I was often broke. I had to trip and stumble and fall, over and over, to master the basic skills of budgeting and thinking ahead.
“Levi, if you buy this expensive CD, you won't have money to pay the phone bill. If you don't have money to pay the phone bill, that means a late fee.”
I should have been having these conversations with myself from the second I earned my first dollar, but I was a late bloomer instead. I don't blame my dad for this; most of us screw up on money matters when we leave the nest. But his strict policy held me back a bit more.
If you're a parent, don't be afraid to let your children get out there and experiment with their money. It's better for them to suffer the pains of poor decisions now than later. Be careful to hold them accountable — they have to live with their decisions — but hovering too closely will keep them naive.
2. Buy the orange shoes
We're a society of consumers. We're bombarded day and by night with ads for the latest and best. We're also a society of narcissists; the pressure to be the coolest, hottest, prettiest kid in class is crushing.
This also applies to adults. The temptation to spend beyond our means is constant. I know a guy who took out a credit card just to buy an enormous flat-screen TV. He was content for about six months until a slightly upgraded version of the same model was released. He couldn't rest until he got the upgrade.
My dad may have been tough, and it may have taken years for the main lesson of his toughness to sink in, but sink in it eventually did and it laid a solid foundation of frugality and discipline in the process.
Whatever you've got your eye on for your next purchase, there's always an orange version of it. If you know you can afford the version you want, go for it. If you know you can't, take comfort in knowing you are making a smart choice that will help your future.
Levi King is the co-founder and CEO of Nav.