MSP

With Getty's 12th birthday came his introduction to the family MSP, the Matched Savings Plan. I got this from "The Parenting Breakthrough" by Merrilee Boyack. When the kids turn 11 or 12, they start contributing monthly to their mission/education/marriage fund. For every dollar our kids add to their MSP fund, we match it. This is the author's schedule:

Age 11: $8 a month, $8 match, $192 principal saved
Age 12: $16 a month, $16 match, $384 principal saved
Age 13: $25 a month, $25 match, $600 principal saved
Age 14: $37 a month, $37 match, $888 principal saved
Age 15: $50 a month, $50 match, $1,200 principal saved
Age 16: $70 a month, $70 match, $1,680 principal saved
Age 17: $100 a month, $100 match, $2,400 principal saved
Age 18: $160 a month, $160 match, $3,840 principal saved

TOTAL PRINCIPAL SAVED: $11,184
add interest earned: $1,000
TOTAL AMOUNT SAVED: $12,184

Quoting the author, "What's amazing is what this plan does. Just think about it. Your kids will be making a multiyear commitment to saving. They will be committing every month: 'I'm going on a mission and to college.' Or 'I'm saving for college and a temple marriage.' The value of that recurring commitment cannot be overstressed. It is a fantastic lesson. It teaches them about saving, about investing, about dedication, and about budgeting...."

She anticipates the day when your sixteen-year-old says, "That's my money, and I want to buy a car." You say, "Half of that money is ours [they forget about that part], and it has been set aside for a mission and education. It is dedicated to that and to your future. If you choose not to use it for those things, then we will use it to support another missionary or donate it to needy children in Africa for their education." Whoa. I'm good with that.

We started M&M on the schedule at age 12. So far, they have grouched about it occasionally but paid in every month. I emphasize to them, "You're paying yourself all that money. We're just keeping track of it for you. And Mom and Dad pay you as much as you pay yourself. It's free money." We try to be as flexible as possible—they can use their clothing budget temporarily or pay a month or so late, etc.

I broke the news gently to Getty the day after his 12th birthday, predicting stormy weather, but instead he got out the kids' accounting book right away and started figuring and asking me if he could pay ahead a few months. He's full of surprises, that one.