Today is the big day our boys have been saving all their money for. Every holiday gift and little bit of money they have earned over the last 2 years has gone into their own little money pouches. What have they been saving for? Not the newest game system or coolest toy but their very own cows.
We told them a long time ago that if they could save up for their own cows we would cover the costs for their hay in the winter and any other cost and they could keep the calves that come from the cows to grow their own little herds. If they have a bull calf it will either be sold or raised by us for butchering or it could possibly be sold as a 4-H steer. That money can be used to put towards a new cow or heifer or saved for something else.
Here is why we choose this route, from a financial standpoint.
1 cow cost about $1,250.00 (at the time of writing, prices fluctuate and can vary by location also)
Each baby it gives you will be worth $800-$1500 depending on the size at the time of sale and the quality of the animal.
So basically, if the have their herds built up to about 10 cows each here in about 5 years or so each year they can sell all 10 babies and be making about $10,000 a year. That’s pretty good for a 10 and 12 year old. We are planning on this helping to pay for their vehicles and college if they choose to go and to overall get them set up for a good start in life for things like a down payment on a house or their own land.
Another reason we like this plan is they will really get a sense of ownership. They can have a say in what happens with their animals and they are making good money with their investment versus it just sitting in their rooms.
When we went to get the cows they picked out a few weeks ago, one had already had a calf and the other is due this week and will have it on our farm. The boys are so excited about having calves and they already are seeing a return on their investment. The little calf is a heifer (female) so she will stay here and in about 2 years give him another calf, meanwhile the momma cow will have a new calf each year. That’s how it works, farm style compound interest.
This is a great life lesson in personal responsibility, finances, saving, interest, and many other aspects. We are very excited to see what this one time investment can do for their lives.