John and The Broken RC Plane

By Julie Frans, Chief Community Officer

I know saving money can be challenging for kids, but since I really started on the COR path earlier this year, I've definitely found it makes things easier when my kids have a specific tangible goal or item in mind. A key tenet in the COR philosophy when our kids are starting out is that when our little ones know a coveted reward awaits at the end of the tunnel, the saving process is more doable. 

But, what happened when my son saved his money diligently, bought something he'd been waiting for... and that thing breaks? 

Should I save the day? Should I help them replace it? It was a real dilemma for me, for sure. 

Here's the story of John and the broken RC plane. 

John discovered RC planes recently, and took up the hobby quite seriously. He'd been injured in an accident and wasn't able to do any of his regular outdoor hobbies like biking, skateboarding, and rock climbing. So, remote control planes became the fun thing he was able to do each day, and one of the few things that really excited him as he recovered from his injuries. 

He'd purchased a little red plane on Amazon with a gift card he'd received as a "get well" gift. It was a $50 plane that kept him entertained for a little while, but soon his eyes were set on bigger, better, more exciting models he saw at the hobby shop. 

He'd been saving money from his COR days for a couple months, unsure of exactly what he wanted to spend it on, but once he found his passion for flying remote control planes, it was clear what that money would go towards. He had previously struggled to put money in his Save bucket, but now had a clear vision of what that savings was for. 

John took a few days to analyze which plane would be the "right" one. He researched, read reviews, spoke with the hobby shop owner, and really thought hard about that purchase.

He had just over $70 in his save bucket at the time, and vacillated between saving more for a $350 plane that really caught his eye, or using what he had and getting a "decent enough" plane within his financial reach sooner than later. 

John decided to go ahead and purchase a $75 plane by adding his Save money and some of his Spend money to cover the deficit. After all, the RC planes were one of the only activities he could do at the time, so he chose more immediate gratification over waiting to save for the bigger, better plane.

John definitely took the decision very seriously. He weighed his options and analyzed his decision with reasoning and thoughtfulness. After all, he had been saving this money for quite some time. 

We went to the hobby store on a Saturday so he could buy the plane. He would have an hour or two in a big empty lot to fly the plane that afternoon. 

He was so excited about his purchase when we left the store. He took it from the box and examined it during the entire 30 minute car ride, planning out how the afternoon of flying would unfold.

He was clearly proud of himself for being able to purchase the plane with all of his own money, and felt assured that he had made a wise decision on the plane, even if it meant wiping out his save bucket. 

Well, the afternoon and the plane adventure did NOT go as planned for John. It may have been a little too breezy that afternoon. Or, he may not have fully understood the remote gears, as they were much different from what he was used to. Or, perhaps the plane wasn't as great as it had seemed. 

Anyway, the plane crashed pretty badly within minutes, and broke in half. The wing came off, the nose broke, and... well, it was a disaster. John was crushed. He tried tape it to repair it, then flew it again. It just wasn't working, and took another nose dive.

The lady at the hobby shop generously tried to repair it, but could not refund or exchange the plane. John tried to use the repaired plane. It crashed again. The tail fell off.  The plane was ruined for good. 

Not only was John crushed about his plane that he had spent his entire Sav money to purchase, but I was also crushed! I felt so terribly for John.

As a parent, you can't help but feel your kids' pain. 

I wanted to fix the problem.

I wanted to help him replace the plane.

I wanted to put $75 back in his COR buckets and have a do-over. 

I had to hold myself back from doing any of these things. I had to because I knew doing so was part of my strategy to raise a money savvy kid. Because of that, all I could do was to share in his disappointment and feel sorry for his loss.  As hard as it was for me to stay financially uninvolved, I had to remember that there would be no lesson in the experience had I simply fixed it and replaced the plane, or given him the money he'd lost.

When we remember the "why" behind the COR allowance program, it helps to keep perspective on these kinds of lessons and look at them as learning opportunities rather than losses or mistakes. 

In my house, the COR strategy provides our kids with allowance, and a deliberate format for saving and spending with the very specific goal that they learn how to use money with hands-on, real-world experiences. We want them to understand scarcity, practice delayed gratification, and even make some bad decisions along the way that cause them a little bit of "pain."

I would much rather practice this lesson with John now,  at the age of 13, with a $75 purchase, rather than later in life, with a much larger price tag.

John now understands that when he makes a decision to use his money on something, he needs to be sure it's worth it, and he needs to be prepared to suffer the consequences if it breaks or is lost. 

It's a tough lesson to learn for a kid, and a very hard lesson to teach as a parent. But, keep in mind that these lessons are at the very core of the Cents of Responsibility methodology, and necessary for teaching kids about money. 

Allowance isn't free money. It's a teaching tool. Period. 

Remembering the "why" of COR will keep you on track through these tough moments. It definitely helped me.

John has since moved on from his short-lived obsession with RC planes as he becomes more and more mobile and active as he's recovered from his injuries. He's back on track, saving now for biking gear, of course, and watching his save bucket start to take shape again. 

- Julie