Skip to main content

Crossing the Line: From Frugal and Fair to Tacky and Stingy

You have to read <a href="http://www.slate.com/id/2166765?nav=tap3">This week's dear prudence</a> to the end to get this question, but I totally agree here. In general, where there is a concern about how to split up a cost in a marriage, a common theme is to divide the costs proportionally to income. Similarly, there are other common schemes to avoid issues of splitting the costs of vacations and dates.

This question crosses into new territory when a divorced couple has to manage the costs of splitting up a week at the beach and letting their kids stay the whole time, plus one step child from one of the couples.

One of the two insists on a prorated schedule, but the other thinks that the first is being nitpicky. I had to include this because I feel like it is the absolute epitome of people crossing the line from frugal or fair into the realm of cheap and tacky. So here is my personal rant to this mother:

In this case, the step daughter is a friend of the other two children. I wouldn't dare to charge extra for this child just because of the fact that she is "not yours". Now if you were taking about 3 or 4 more kids, then it might be a different story. But two of the three kids there are yours.

Putting it another way, when it is your kids that are going to stay there, if they brought a friend, would you have the friend's parents pay for it when your whole family was going there? Of course not. The marginal cost is nothing except food. This means that this extra child really doesn't cost anything and you're just being tacky and stingy.

One common theme when it comes to money is you know you are crossing the line when your level of frugality puts people in an akward position despite having the money to avoid it. And if the position is awkward and inconveniences other people, then it is just above and beyond what is considered fair in my book. In this case, would you deny that kid a chance to be at the beach a few more days with her friends because of a pro-rated 40$ bucks or something like that? No, of course not. This is when frugality crosses the line.


If you really didn't have the money and needed it, that would be one thing. But that is not true here. And honestly, if you were "that close" to the edge on money, should you really be doing the vacation in the first place?

Comments

Popular posts from this blog

On Buying a Lifestyle...with a Fixed-Rate Mortgage

Despite all of the back and forth about sub-prime mortgages and the housing bubble, I am feeling just fine. The reason is that when purchasing, I followed some old advice: Don't expect to flip. In general, I've been told by many people that you shouldn't buy a home unless you plan to hold on to it for 7 years or longer. If the market does well and you decide to sell, fine. But if you want to be sure not to lose money, don't buy something that you only want for a year or two. I've been in my current location for more than 3 years. I like it. And I have no intention of leaving in the short or medium term. It seems to me, that real estate, like any asset class, has its ups and downs. But as a practical point, I don't look at my home as an asset per se. Rather, I consider it to be a fixed expense that I need to survive, much like food and water. Therefore, as long as the payment is reasonable and it functions to keep me warm and sheltered and comfortable, that is a...

Do Better With Your Time

Recently, I've been extremely busy with some work commitments. The interesting thing for me is that this increased work activity has really helped crystallize some of my feelings with regard to time. And these ideas are a critical part about my view on personal finance. I'm curious to know if others feel similarly. Time is money. That is, Time, in some way, contains energy. Money, is also energy. In the act of working, I am able to compound and increase the amount of money that I have. I am exchanging my time and effort and thought which are components of my work, for the productivity that I produce. And this production gets me money from my employer. However, the first dollars that I make each day, week, or month are the most valuable. Then the ones that I make at the end are the most valuable. (Forget about taxes for a minute.) The reason is, the first ones help me have a place to live and food to eat. And the last ones are the ones that I can use to really improve my life lo...

Blogging WealthTrack: Christine Benz (Retire Early? Or not?)

 This morning I've watched an interesting video on Consuelo Mack: WealthTrack. Here, Consuelo's guest, a longtime contributor, Christine Benz, a personal finance expert from Morningstar joined Consuelo for a discussion on issues related to retirement, in particular in the current market environments. This conversation is even more interesting against the backdrop of The Great Resignation. I found Christine's advice to be particularly interesting on a couple of fronts. Her advice in dealing with talking about retirement in general, in particular for people who are in the process of thinking about retiring early gave me pause. She is considering the traditional advice of a 4 percent withdrawal rate to be dangerous and indeed, actually concerning. According to the recent research she cites, a 3% withdrawal rate is a better option. Even more than the four percent rule, I think that her comments on annuities are particularly interesting. While annuities have been given a bad nam...