Nickel and Dimed

Chances are, at some point, you’ve heard the phrase “nickel and dimed”. The term is usually heard when someone’s frustrated about being hit with several small sneaky charges when paying for goods and services.

Lately, I’ve been joking with friends that I’m being “nickel and dimed” by my teenage daughter, Grace—but in $10 and $20 increments. She’s at the age where school activities, summer camps, church youth group events, and outings with friends all seem to come with an extra cost: $10 here, $20 there—for food, fun, or some random necessity.

We’re fortunate to be in a position to support Grace in these extras, but this summer, we’ve started discussing how all those little costs begin to add up. While my husband, Neil, and I don’t follow a strict budget, we are mindful of how these extras factor into our long-term financial plan—even if we don’t have an exact dollar amount set aside. Now, we’re working with Grace to help her become more aware of her spending—how often she’s asking for extras, and how she can earn money to cover them herself.

We’re also teaching her how to account for even the smallest costs, and how to think critically about what’s worth spending money on. (Did you know a Salsarita’s combo meal can cost up to $18?) I can see she’s becoming more aware by acknowledging the price of a soda or the cost of adding extra queso to a meal when she’s out with friends. She understands that when she’s out and about, she’s the one responsible for those add-ons and upgrades.

As parents, Neil and I know what we can control—especially how much money we are transferring from our checking account to hers. Grace is starting to learn what she can control too, and how her decisions impact the bigger picture of her summer plans and spending.

At Rather & Kittrell, we talk a lot about what we can control. During our working years, that includes managing expenses and setting aside savings for retirement, while also preparing for life’s inevitable surprises. In retirement, the conversation shifts to staying on top of spending to keeping the plan intact and continuing retirement with confidence.

We also regularly talk with clients about controlling taxes and insurance costs often through intentional, advanced planning. But there’s another important piece of your financial plan that is completely within your control: creating a low-cost, highly diversified investment portfolio tailored to your unique goals and risk tolerance.

While we can’t control the markets, politics, natural disasters, or economic shifts, we can help you build and execute a disciplined, time-tested investment plan designed to weather those ups and downs—without being “nickeled and dimed” by unnecessary investment costs.

Let’s be honest: if you’re going to be nickel and dimed, wouldn’t you rather it be from treating your kids or grandkids to a little something extra—knowing your financial plan already has it covered?

Amanda Howerton, CFP® is a Senior Advisor with Rather & Kittrell.