The Bank of Dad – Closed for Business! (Part 1)

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Jul 11

Written By Eric Gelb

Image sourced by BoliviaInteligente @boliviainteligente

A few months ago, Netflix changed the game.

For over a decade, I subscribed to Netflix and my children Alice, Rita and Mike V. began enjoying my largesse.

They’re adults now and we live separately, so four households could binge watch.

When I first joined, my children thanked me for adding them to my Netflix account. But like many, they came to view Free membership as standard operating procedure. Part of the daily routine.

The streaming was great, full of movies and TV series, something for everyone.

Last time I checked my credit card statement, Netflix charged me $27.08.

Annualized, that equals $324.96 per year ($27.08 multiplied by 12 months).

And that’s after-tax.

Netflix’s new configuration limits the number of households that can share a Netflix account.

Crazy as this may seem, Netflix Locked Me Out!

Now my three children can enjoy Netflix while I cannot! Just lovely.

Paying for something I can’t even use.

Ugh!

Somehow recalling my elementary school American history class, I remembered the saying “Taxation without Representation is Tyranny!”

To quote my son Mike V., “I see how it is.”

Now. . . I have to get my own Netflix subscription or kick them off my plan or ask them to contribute money towards the monthly membership cost – a financial contribution.

If I continue paying for my children’s Netflix subscription, I’ll pay $24.99 per month. That equals $299.88 every year, absent price increases ($24.99 multiplied by 12 months).

And that’s after-tax money too!

And if I sign up for my own Netflix subscription, that would mean paying another $7.99 a month for the ad-supported standard plan or $17.99 a month.

Absent price increases, that equals $95.88 per year ($7.99 multiplied by 12 months).or $215.88 ($17.99 multiplied by 12 months).per year.

In total, I would be paying Netflix $32.98 ($24.99 plus $7.99) or $42.98 ($24.99 plus $17.99) every month and $395.76 or $515.76, after-tax.

And please notice that pennies and dollars add up to big dollars and big expenditures.

Often, it’s the small expenditures that slip through the cracks and become part of the monthly credit statements. Often, they get overlooked amidst the charges on the credit card statement.

Turning to my next vacation, the annual Netflix Money could cover an airplane ticket or two nights at a hotel.

Or increase the amount of money I could save for retirement.

It’s Not the money or any reluctance to help my children but really a question of appreciation, which happens to be my ‘thing’.

When should a child carry their own weight and get ‘off the payroll’?

My three are 31, 29 and 26 now. They have jobs although Alice got ‘Doged’ so she’s on the beach for the moment.

They’re great people, amazing and good citizens!

But. . . when should children take responsibility and pay their own bills, costs and expenses?

While I am still paying for my children’s Netflix membership and plan to continue funding their streaming habits, I plan to get my own Netflix account even though it irks me.

But the question is, “What’s fair?” And “When is enough, enough?”

For the moment, I’ve closed the Bank of Dad, fired all the tellers and locked the doors to new expenses.

I still haven’t discussed the Netflix subscription with them but may if the opportunity presents itself.

I suppose I could ask them to Venmo me a few bucks every month? A financial contribution. . . Once they graduated college, they began sending me money for their cell phone bill.

Often, money and cash are a zero sum game – what you give away, I get. And vice versa.

And if you give more money away, just to bring this point into the light, you have less money to save for retirement, pay down debt and take a nice vacation.

Spending and saving are a personal choice but “When is enough, enough?”

And what’s the right balance for you?

And while you’re at it, take a look at your recent two or three credit card statements and bank account statements. It might be a startling experience.

Identify the waste. And. . .

Decide what expenses you want to cut out and what expenses you want to eliminate.

If nothing else, eliminate the waste – that’s the money you spend on stuff you don’t use or don’t really need. And believe me, over the years I have wasted plenty!

With your newfound money, pay down your debt, add more money to your retirement accounts or take that vacation you’ve been longing for. Or a combination.

Let’s get to it right now.

Arthur V.

Disclaimer: OH and Please Remember, we are Not financial advisors, financial planners, attorneys or accountants and are Not providing any specific financial, tax or legal advice here. Be sure to conduct your own due diligence and consult your own professional advisors to get sound professional advice that’s specific to your financial and personal circumstances, risk tolerance, time horizon and investment goals and objectives among other key factors!