Jack and the "Beanstalk" A Financial Fairy Tale
Jack and the "Beanstalk" A Financial Fairy Tale
by T. Claire Kest, CFP®, CAP®
Jack's mother, Annalise, was a hardworking woman. After her husband passed away, she received a $1,000,000 life insurance policy. Rather than quitting her job cleaning houses, she decided to save most of that money for the future, only spending on her son, Jack who was a freshman in high school at the time. Determined to support Jack after the loss of his father, Annalise made it her mission to support her son and provide the best opportunities possible.
Annalise bought Jack the latest gadgets, toys, designer-label clothes he requested. For his 16th birthday, she even gave him a car, all while sacrificing her own needs.
She ensured that Jack could attend college and get the education she never had. Jack attended college for six years but struggled to finish his Bachelor's Degree. By age 24, he decided he could make more money playing video games, so he moved back home to his mother's basement. Five years later, he was still there, and Annalise began to feel frustrated with the situation and resentful of her son, who seemed to be taking advantage of her kindness.
One morning, after a heated argument, Annalise changed the Wi-Fi password before leaving for work. When Jack noticed he could not access the internet to play his game and yelled up the stairs. "Mom, the internet is not working!"
"That's because you are not working. It's time for you to go out and find a job." She shouted back at him.
"I am working!" He retorted.
"Playing video games is not a job. You are almost thirty years old. You need someone to pay you for work." She said calmly, not wanting to escalate the situation.
Jack came storming up the stairs, likely because he couldn't hear what his mother was saying and wanted to get his way.
"Please turn on the wi-fi!" Jack demanded.
"I am going to work. If you want to use the internet, you can go to the library," she replied, walking out the kitchen door and into the garage.
As she got in her car, she heard Jack yelling at her. She pulled out of the driveway while hot tears of anger rolled down her cheeks.
Later that day, she returned home to find a curious setup filling her garage space. Instead of room to park her car, she found the bay filled with plants.
"Jack, what is going on in the garage?" She asked.
"You told me to get a job, so I started a new business. I'm going to make lots of money from this new company. I'm calling it 'Jack's Beanstalk.' One of my friends online told me about these magic beans that give you superpowers. Everyone wants them, but they are very rare." Jack stated, quite proud of himself. "My friend, Carl told me. He showed me a video of how it works. He's made a fortune already!"
Annalise was infuriated. "How much did all this cost to set up and where did you get the money?" She asked calmly, fearing his answer.
"Don't worry about it," was Jack's reply. "If you're not going to be supportive of my dreams, I'm not going to tell you." And he bounded down the stairs, leaving Annalise with more questions than answers.
Stifling her rage and fearing the worst, Annalise pulled out her phone to check the hidden camera to see what he had been up to. Sure enough, camera one showed him entering her room at 11:30 a.m. and exiting at 11:33 a.m. Camera two, overlooking her dresser, revealed him rummaging in her jewelry box. Camera three showed him leaving the house and getting into his truck at 11:39 a.m. He returned with the bed of his truck loaded with supplies for his grow project at 1:49 p.m.
Nervously, she hurried to her room, dropping the bag of groceries in the kitchen. "No, no, no," she murmured to herself. Why had she shown Jack the broach and told him about its value? She chastened herself. Then she remembered that he had been different before. Back in high school, Jack was kind, ambitious, and helpful towards his mother. The past few years though, he had grown mean and disrespectful.
Annalise took a deep breath inside her room before looking in the jewelry box. "Please be there," she prayed. But alas, as soon as she opened up the top, she could see the missing spot where her brooch belonged. For her 16th birthday, her mother gave her a diamond and black onyx-encrusted cow brooch that had been a gift from her grandmother. Annalise would wear it on special holiday occasions and Jack knew how much it meant to her. How could he betray her like that after everything she had done for him? She fumed.
Feeling too furious and hurt to speak to her son, she went for a walk to calm down. Trying to sort through the emotions but needing support, she called her best friend.
"He crossed the line, Wendy. I want Jack out of my house! I gave him everything, and he repaid me by stealing my mother's gift to me. What am I supposed to do? I'm afraid that if I kick him out, he will never speak to me, but if I don't, I will resent him forever."
"It sounds like you know what you want and must do, but you don't know how to make it fair. Does that sound right?" Wendy challenged her longtime friend.
"Yes, I don't want him living on the street, but I also can't have him living in my house."
"Here's what I would do if I were you. Give him some options. First, he can figure it out on his own, go stay on a friend's couch, or live in his car. He is a big boy. Second, he could go into the military. They will train him to do a job, give him a place to live, and three meals a day. Third, didn't you tell me he only needs three classes to get his degree, and you would pay for that?"
"Yes, he was so close to finishing. I think he would have trouble getting a good job without the degree. He could graduate in six months if he just applied himself," Annalise sighed.
"Ok, so you don't want him living in your house, but what if you paid his rent for six months while he was finishing his degree? You could have him sign a promissory note that if he does not comply with certain conditions, like going to class and passing his coursework, he would have to pay you back for the rent and tuition. What do you think?" Wendy asked.
Feeling confident in the plan, Annalise returned home to confront Jack and present the options. Jack, however, did not like any of the plans. So, Annalise gave Jack a fourth option. If you are not out of my house within 30 days, I will call the police and give them the evidence that you stole my cow brooch. I do not want them to arrest you, but if that is the only way for you to see how serious I am that our situation needs to change, I will do it," declared Annalise firmly.
"You wouldn't call the police! I'm your son!" Jack exclaimed in exasperation.
"Do not test me on this. I've made up my mind."
A year later, Jack knocked briefly before poking his head inside his mom's door. "Mom, it's me."
"Come on in. I'm in the kitchen," Annalise replied.
Jack tentatively walked into the house, and after wiping her hands on the towel, she embraced her son. "It's good to see you, Jack."
Over dinner, Jack expressed his gratitude to his mother for giving him the boost he needed to complete the degree. "I just got a great new job. I am now a project lead for the tech giant Golden Goose Enterprises, and I have a new girlfriend." Jack shared excitedly.
While Jack was recalling his adventures over the past few months, Annalise felt the weight she had been carrying release. Her son was happy and thriving.
The Moral of the Story
Annalise realized that she wasn't doing her son any favors by providing for his every need and putting up with his childish behavior. Enough is enough.
Children need to struggle before they can succeed. And with the help of a financial advisor, she understood that she had more than enough money to retire securely, so that's just what she did.