by John Darer CLU ChFC CSSC RSP
What values are we imparting to our children during what Jim Cramer refers to as the “garden variety depression”?
I received a call this morning from a $75,000/year single mother of a 16 year old who called me because I have traveling experience. On a “limited budget” she wanted to take her son on his first airplane trip, “insisting on first class” from Philadelphia to Atlanta, stay for one night at one of the nicest hotels, where her son could order room servicejust for the heck of it, rent a car and all the trimmings.
After a few dramatic “get the F%^& outta here!” moments, reality kicked in when I broke the news that first class isn’t exactly a golden throne in the sky—especially not for triple the price on a two-hour, mid-afternoon hop.
In First for short haul flights on American, which is generally my airline of choice, depending on the aircraft, you get priority boarding (and dedicated security lines at certain airports) a somewhat larger seat and a deluxe warm nut mix. Air Tran, Delta and US Airways fly the route and having flown each of them I’m know the accoutrements are similar.
When she said “but you fly business and first”. I explained that if you “must”, taking advantage of loyalty programs available to frequent fliers to earn or buy electronic upgrades makes more sense than paying for first class for short trips. The better business or first class experience is on long haul or international flights where a roomy fully reclining flatbed seat and better meals may be the order of the day and night. Frequent fliers also get priority boarding (and priority security lines at certain airports-Clear Card holders do too at certain airports).
Then we got onto the subject of the best hotels in Atlanta and the concept of room cost, the occupancy tax which could add 15-18% to the cost came up and then the room service for another 15-20%
The Gryphon Burger Fantasy
Ultimately, I assisted the woman in securing a reasonable airfare with exit row seating and a quality yet more affordable hotel. This allowed her son to indulge in the “snob appeal” of ordering the $15 hamburger with a 20% room service charge, using the savings from the initial hotel choice she had considered.
One reason young adults develop poor financial habits as adults is that they are not given the proper foundation for financial behavior by their parents
- What did the kid do to earn first class?
- Is this lady’s kid then going to go back and boast to his friends he flew first class?
- Any kid with savoir faire, will simply say “first class from Philly to Atlanta…woop di doo”. What’s her kid going to do for a follow up?
- What’s the expectation for the next time? Your child may have received a settlement from the death of your spouse, his parent. Some money is available at age 18. The “school”of Paris Hilton is not realistic.
- What the gossip columns and shows say the stars are doing is not realistic for most people.
Savvy parents, with a little online sleuthing, can give their kids amazing adventures without breaking the bank or getting caught up in competing with the Joneses’ extravagant lifestyles.
After losing half of their 401K in the stock market, the Joneses are now expert coupon clippers, fielding their kids’ awkward questions about how to explain their “budget-friendly lifestyle” to friends, and wistfully reminiscing about all those missed chances to fly economy.
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