DEAR GRANDPA: MONEY ITSELF ISN'T IMPORTANT, BUT WHAT IT CAN DO FOR YOU

Dear Grandpa:

Why is it so important to succeed in school and later make lots of money. My minister said, "Money isn't everything." Julio, San Antonio

Dear Julio

Many people say money isn't everything, or money isn't important. Most of the people who say those things are comfortable financially. They don't have money problems because there is always enough there to pay for what they need. We don't always buy just what we need but what we want. That's another story--we buy what we want versus needs.

We are a credit-happy people, and most Americans could not go two or three months without a pay check without going completely broke.

In many cases, to get a good paying job you need to have proven yourself in school. And, the higher your education, chances are, the more money you'll make.

When I finished high school a high school friend of mine became a brick layer. He made good money doing that. I was tempted to lay bricks and not go to college. My mother talked me into getting a higher education. For four years he made a lot more than I did, and it took me a couple of years after I finished college to make more than he did.

Money itself isn't important, but what it can do for you: food, shelter, clothes and personal things.

I probably grew up in the generation when mom and dad wanted their children to have a better education and a better life than they had.

After I finished college, even though I worked part-time at school and full-time in the summers, I owed my mother S2,800. Back in 1950 that was a great deal of money. It would buy two nice cars! I paid off that indebtedness $50 per month at my mother's insistence. Evely month when I would write that check my wife and I would ponder how we could use that money to pay for shoes for one of our kids or other necessities. Mom said she needed the money and she did loan it to me. I was obligated to pay it back. I did.

Borrowing is so easy. Seeing the car sale ads I wonder what small percent of car buyers pay cash?

Chances are by staying in school, you will, over the long run, have a greater income. Yes there are those who become wealthy through business of their own. They are the minority. I am not talking about selling drugs, which should never be an option to a person with character.

Income alone will not allow you to become financially independent. What you do with your income will allow you to accumulate wealth. Low income persons who regularly take a percentage of their meager income and invest it do much better over the long haul than those with large incomes who do no saving and investing.

The church says to tithe, which is give ten percent off the top to the church. I say you should pay yourself first with ten percent for investment, then allocate the rest to other items. The home you live in has traditionally been a "best investment." At the end of your rental period all you have are receipts. When buying your home you have equity (value) building up.

Feb 6, 1999

If you have a question to ask grandpa, send it to: Dear Grandpa, (The Jackson USA Signal, 108 S. Hope St., Jackson MO, 63755 or e-mail direct to grandpat@~stic.net.