Fredericksburg Parent

22 Fredericksburg Parent and Family • August 2026 It is important to note that while all investments are assets, not all assets are investments. An asset is anything with financial value that is necessary to survive like your car or primary residence, whereas investments are assets specifically pur- chased with the primary intention of generating income or capital appreciation like a rental property or stock. This distinction becomes important when thinking about how quickly money can be tied up or lost in "smart" decisions that aren't actually investments at all. As a couple, we have had luck at the track picking the winning horse and have had the good fortune of getting good squares in Superbowl pools over the years. While our winnings were significant, we never got overly cocky with the sudden monetary jackpot. Our experiences have shown us that sometimes the best decision is sim- ply holding, but holding loosely. Often, a surge in wealth, such as an inheritance or lottery win triggers an overcon- fidence bias and poor future decision-making. My thought process is "Sweet, that just paid for our pool membership!" Not the alternative of allowing the pendulum to swing the other way, to blow our winnings on another small appliance for our kitchen counter that would more than likely just gather dust. That small mindset shift helps prevent short-term excitement from driving long-term mistakes. This reminds me of when my husband, before we were married, decided to play the stock market during the dot-com bubble. As a young twenty something, he got in right at its peak in March 2000. Fortunately, he only put in $1000 and walked away from this bad investment less than six months later in August 2000. To this day, he is not much of a gambler, but I am glad he scratched that itch and played the stock market before we were married and had children to support. It was a small but valuable lesson in knowing when to fold 'em early. No matter how you save, spend or invest, keep in mind how you came into your money. Was it by doing your daily grind or was it a financial boon? Then you blink and your payday is gone—was it by paying your everyday living expenses or did you fall prey to a bad investment decision? Whatever the outcome, take responsibility and know when to hold 'em, know when to fold 'em and know when to walk away. Whatever the path, the outcome always comes back to discipline and awareness. WRITTEN BY NIKKI DUCAS I was recently reminiscing about Kenny Rogers' classic country song, The Gambler. The lyrics "You got to know when to hold 'em, know when to fold 'em, know when to walk away, know when to run..." have always stood out to me, but recently they got me thinking more deeply about how this philosophy applies to savings, spending and investing. I often find myself daydreaming about "get rich" schemes and how a financial windfall would solve so many of my family's monetary issues. But then I snap back to reality and remind myself that I am a good money manager who tries to keep The Gambler philosophy in check. In practice, it looks like this : YOU GOT TO KNOW WHEN TO HOLD 'EM: Or spend/invest by observing investment opportu- nities and manipulating personal wealth to further monetary gain. KNOW WHEN TO FOLD 'EM: Or stop/cut losses by distinguishing when an invest- ment is no longer working for your benefit and ana- lyzing your circumstances to protect your capital. KNOW WHEN TO WALK AWAY, KNOW WHEN TO RUN: Or removing yourself from a losing financial situ- ation. Having an investment strategy in your back pocket and keeping in mind your long-term goals will help you know when to discard a bad invest- ment and when to hold onto a risky asset. family money A Smarter Approach to Money When to Hold, When to Fold:

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