Son: Dad, I need to talk to you about my allowance. It's just not enough.
Dad: I give you $100 per year. How much are you spending?
Son: I spend about $150 per year.
Dad: $150! Where do you get the extra $50?
Son: I borrow it from some kids at school. They know you'll pay for it if I can't and I pay them some interest every month.
Dad: I'm glad to see you are such a good businessman. How much do you owe these kids and how much interest do you pay each year?
Son: I owe $500 now. I pay interest of about $11 per year.
Dad: So only $11 out of your $100 allowance is going to interest? That's not bad!
Son: Yes, it is no big deal. But I would like to reduce my debt and I believe it should be a shared sacrifice on both our parts. Here's what i propose. I'm willing to cut my spending if you'll increase my allowance by the same amount. Over the next 10 years i promise to reduce my spending by a total of $100. Then you can increase my allowance by $100 - a mere $10 per year.
Dad: Sounds reasonable. I will give you $110 next year, and you will reduce your spending to what?
Son: $160.
Dad: Wait, that's more than you spent this year. I thought you were going to reduce your spending.
Son: I am. You see, without our agreement I was going to spend $165 next year. It has to be more than this year because of inflation and I want to get some new tires for my bike. But because of our agreement I am willing to only spend $160 for a savings of $5. I know this is confusing so here's a schedule of my spending reductions by year. You'll see the total savings is $100.
Dad: I think I get it now. I notice from your schedule that most of your savings are in years 9 and 10. Is that right?
Son: Yes, that's right. I figure that gives me enough time to adjust my spending habits.
Dad: And at the end of 10 years your debt increases from $500 to $800.
Son: Yes, but without our agreement it would have been $1,000!
Dad: Brilliant!
(Mom enters the room.)
Mom: Honey I am going to the mall to buy a dress. It is on sale for 50% off.
Dad: You know we don't have any money right now, don't you?
Mom: Of course I know that. But this actually saves us money.
Dad: Brilliant!
Son: Dad, our neighbor Mr. Jones is at the door and wants to talk to you.
Mr. Jones: I would like to retire next year and would like to propose a deal. If you will pay for my retirement, then my children will pay retirement for both you and your wife.
Dad: But you only have one son - and he doesn't even have a job!
Mr. Jones: That's not a problem because we have arranged with some of his friends to help.
Dad: Brilliant!
(A perfect stranger walks to the front door.)
Perfect Stranger: Hey, I couldn't help overhearing your conversation. I have some land in Florida you might be interested in . . .
David LeSueur lives in Littleton, CO with his wife Mary. He is currently heading up a petition drive to raise taxes on everyone whose last name begins with the letter "T".
