Tooth Fairy feeling the pinch and tightening the purse strings
Rising costs in day-to-day living mean even the Tooth Fairy is feeling the pressure when it came to disposable income
Parents should not be surprised if a savvy kid holds onto a lost tooth until market conditions improve.
This is the message from Illinois-based dental insurance company Delta Dental Plans Association, which has found in its annual survey that the Tooth Fairy's purse strings are tighter.
According to the just-released Original Tooth Fairy Poll, sponsored by Delta Dental, the American Tooth Fairy's average cash gift declined from R60 to about R50 for a lost tooth.
Locally the Tooth Fairy is also feeling the financial pinch.
Nine-year-old Nathi Zulu was disappointed when he found R10 under his pillow in December.
“The Tooth Fairy usually gave him R25 per tooth. The Tooth Fairy had a lot of bills including school fees to pay in December,” said his mother, Constance Zulu.
Sanlam Personal Finance financial planner and head of channel and segment marketing Lee Hancox said that just like normal South Africans, the Tooth Fairy was feeling the pressure when it came to disposable income.
“Day-to-day costs have risen, so it is costing the Tooth Fairy more to put petrol in the fairy mobile, pay the bond on her fairy house, and feed the fairy family, also taking into account that the Tooth Fairy may have debt to service every month.
“The Tooth Fairy feels economic pressures just as much as her human counterparts, so an increase in monthly expenses means she has less to spend on paying children for their teeth.”
Hancox advises the Tooth Fairy to try to cut expenses.
“Differentiate between want and need. Does the Tooth Fairy really need a new set of wings now, or can it wait a month or two? If they can cut out unnecessary spending, they may have some extra money towards the payout.”
The Tooth Fairy should keep track of spending.
“Sometimes keeping track of spending is not easy, so they should get a little fairy scroll and journal all their monthly expenses.
“It may be surprising to see how much money they are spending on non-essential expenses like pixie pears, fairy lights and keeping up with the elves next door,” Hancox said.
The Tooth Fairy should also have a savings plan to invest money, with a specific goal in mind.
“The Tooth Fairy should also be putting money away towards her retirement, so that she can one day hang up her wings with peace of mind.
“The Tooth Fairy should try to have an emergency fund, to put away spare cash when she has it. This fund will build up over time and can be used for unforeseen expenses, like having to pay for a tooth unexpectedly,” Hancox advised.