Lesson 12: Defining Rich QOL vs. SOL Part 2

Do you have to increase Standard of Living to enjoy a higher Quality of Life?

April 2018

Elementary: Explain that increasing Standard of Living usually requires spending more money (NEEDS: bigger or better home / more food choices / better schools / WANTS: better or more video games / more toys / more or bigger vacations). Spending more money often means less breathing room.

Increasing Quality of Life only happens if you feel safer or have less worry.

Ask your kiddos this:

Does having less breathing room (increased expenses with the same income) make you feel safer/less worried?

Your kids should now understand that having financial margin or breathing room between income and expenses will increase Quality of Life! When they answered previous questions with how they felt, they were answering in regards to Quality of Life.

Quality of life, therefore, should be the true metric for “rich”.

Middle School: Explain that increasing Standard of Living usually requires spending more income (NEEDS: bigger or better home / more food choices / better schools / WANTS: better or more video games / more toys / more or bigger vacations).

Increasing Quality of Life only happens if you feel safer or have less worry. Explain how it’s possible to increase Standard of Living and not increase Quality of Life (i.e. you increase Standard of Living through the use of debt).

Ask your kiddos this:

With the examples of the lemonade stand and a simple budget from the previous lessons, how did you feel when you had more rather than less margin between income and expenses?

Many times, movies, TV, magazines and music will suggest an increase in Standard of Living will increase Quality of Life. Unfortunately, you can increase Standard of Living beyond income through debt. We believe this is counter to an increase in Quality of Life. Quality of Life only happens through having breathing room in your finances. And we increase Quality of Life through discipline.

Quality of life, therefore, should be the true metric for “rich”.

 

Teen: Increasing Standard of Living requires spending more of your income to buy the bigger house, fancier car or take the family on a cruise for vacation. Often, people will pursue this increase of Standard of Living thinking it will improve their Quality of Life. But as your teens have been learning, they feel better (more Quality of Life) when there’s margin or

 

breathing room in their finances.

Ask your teens this:

Would you rather have an outward appearance of a high Standard of Living and have no financial margin or have a lower Standard of Living and have breathing room in your finances?

Bottom line: Quality of life should be the true metric for “rich”.

 

Parents: Make sure your kids know that we are not bashing having nice stuff. It just needs to be an ancillary benefit of having breathing room rather than the goal or end-state.

Quality of life increases with increased margin – this is the BIG IDEA for these first lessons.

Random Fun: Okay, now have the kids draw self-portraits with their non-dominate hand. Let hilarity ensue!