#527 Santa economics

I asked a friend who has young children what the hot gift was for the kids this Christmas.  He replied that his young daughter wants a special Lego kit -- that costs $130!  When she told him about it, she said: "I would never ask you and Mom to buy it because it costs so much, so I am asking Santa for it!"

Do you have things in your organization where it seems like people are asking Santa instead of Mom and Dad?  Things that come out of a capital fund seem more like they are from Santa instead of operational expenses out of your budget.  Leases or long-term contracts seem easier to swallow than paying a six-figure sum up front, but it still costs that much in the end.  When building a home, it somehow is more palatable to add in a thousand dollar enhancement, but if we paid $1000 out of our checking account it would be painful.

Economists have shown that the more direct link there is to the cash, the smarter people are with their expenditures.  What steps can you take in your organization to help your employees understand that Mom and Dad are paying the bills and not Santa?

-- beth triplett
leadershipdots.blogspot.com

@leadershipdots
leadershipdots@gmail.com

Thanks Grace!