Teaching your child about money

[nadiakei]

Abney Associates Ameriprise Financial Advisor - Ask your five-year old where money comes from, and the answer you'll probably get is "From a machine!" Even though children don't always understand where money really comes from, they realize at a young age that they can use it to buy the things they want. So as soon as your child becomes interested in money, start teaching him or her how to handle it wisely. The simple lessons you teach today will give your child a solid foundation for making a lifetime of financial decisions.

[Keys]

OK.

I have four children. Three full grown and one under 10.

Give me your suggestions on what I can teach my under 10 year old to have a lifetime of good financial decisions.

Make a good impression and reply. See if you can get your posts up to more than two dozen.

[wanderer]

some of the things I did with my son, not all made immediate sense to him, but a few years down the track and the lessons are sinking in

:redirecting a % of all $$ received to a "future wealth" account
:evaluating things together in the supermarket to determine best value
:giving him the option of some $$ or treat now, or delayed gratification and more $$ or better treat
:taking him to a store like the warehouse with his $20 note. he could purchase whatever he liked, but no further $$ from me. he would wander around and pick up everything that caught his eye first of all, then we would work out if he could afford things
:stating we had a certain amount of $$ to spend on that days adventures and looking at the different options, ensuring that there were also free things to consider
:regular chores were done with no expectation of payment, but I would pay him for one-off jobs that were done well (with part of that re-directed to future-wealth)

he is now 15, has worked in his school holidays in a real job and the feedback has been positive. he worked well, did jobs to a high standard, didn't piss around and was always back from breaks on time. with the income received he also re-directed % to future wealth, allocated himself $$ for the electronic thing he wanted, and used the remaining money to pay for things for himself during term time. a few times he has wanted to use his future-wealth $$ to satisfy immediate wants, but so far has resisted. he will also point out ways in which i am not being too smart with finances or other things

[Keys]

a few times he has wanted to use his future-wealth $$ to satisfy immediate wants, but so far has resisted.

Send me an email. I'll send you my XL file which I use. Use his future wealth money to run a loan scheme for himself. Allow him to borrow off of himself and ensure he pays himself back with interest. All of my kids have that facility and use it extensively. Cheap HP finance for them. Very good interest return on their own money. We set the interest rate at 10% after tax (which is, of course, not payable as it is borrowing off oneself).

[wanderer]

thanks. I'll do that tomorrow.

we now do a 'reckoning' every couple of months. he pays for all day to day things such as school fees and bus fare with his bank card and then i pay him back, with a little extra as interest. he finds it uncomfortable to see his balance creep downwards, and gets an understanding of life expenses. then when i reimburse i get him to pay some more into his future-wealth. he does recognise that he's not getting paid twice but is effectively paying into his future-wealth twice, but because i've just re-instated his bank balance to several hundred $$ it doesn't feel too bad. this isn't something i would have used with him when he was 10 though, we began when he started college and got a bankcard

[artemis]

Apart from putting the kids into Kiwisaver and a growth fund, they (teenagers) get a good amount of pocket money. From which they have to pay their own transport and phone. They do not have to do any chores for that money but are expected to contribute as members of the household. They can earn more by negotiating specific jobs around home or taking on holiday /after school jobs. They have been introduced to op shops, LOL.

Not showing any interest in the regular fund reports they get, but I am hopeful some will be absorbed via osmosis.

[donna]

Yeah that's the training most kids just don't get and it is the most valuable - well done Wanderer. Hard not to be impressed with that!

cheers,

Donna

[speights boy]

Launch a financially savvy adult

It's the secret fear of every parent: failure to launch.
What if, despite your best efforts, your adult kids just aren't able to sustain themselves financially?

The idea used to give American Andy Byron the cold sweats.
With a whopping five kids, the 57-year-old financial planner from Pleasanton, California wanted no part of 'delayed adults' hanging out in his basement well into their thirties.

So he and his wife turned their household into a virtual factory for churning out financially independent kids.

[PTILoveYou]

Arouse an eager want.

No point teaching someone who don't want money right?

Once they realise the importance of money they will learn, whether you teach them or not.

[monika.sodomka]

I remember my own parent, gave me a small sum every month but expected me to get a job as soon as I could to afford the things I really wanted.

Teaching kids that they can't have everything they want when they want it and that it costs money - has got to be the number one lesson I think!

[BigDreamer]

I'm finding teaching my mother in law about money is very difficult >_<

I'm sure teaching a child is far easier.

[speights boy]

Suddenly this Armenian woman wants to reconcile and now come and live in NZ.
Of course the $660,000 raised by donations has nothing to do with her change of heart.

Immigration NZ's decision on this one will be interesting to watch.

Leo's parents to give it a go

A mother accused of ditching her Down syndrome son has reconciled with her Kiwi husband and wants to move to New Zealand after $660,000 was raised to help the boy.

Armenian Ruzan Badalyan is understood to be applying for residency after a change of heart saw her and Samuel Forrest patch up their relationship this week.

Wanganui-raised Forrest made world headlines last month after his appeal for help as a 'solo father' to repatriate Leo from Armenia raised more than $660,000 from 17,869 donors.

http://www.stuff.co.nz/life-style/life/66795628/leos-parents-to-give-it-a-go

[Wayne]

Suddenly this Armenian woman wants to reconcile and now come and live in NZ.
Of course the $660,000 raised by donations has nothing to do with her change of heart.

Exactly my thought when I read the article.

[Learning]

I had to teach my wife how to look after money after we first met. She was paid monthly, lived like a queen for the first week and then live off baked beans till next payday. Her mum use to make her pay for everything out of her own money and take anything left over for board. This instilled an idea that money didn't last and had to be used quickly.

[charlotte30]

A couple of days ago my 9 yr old grandson asked me what's retired Nana? (I have just retired)
Reply from me - That means I have stopped working.
Grandson - Are you going to get another job?
Reply from me - No (I am wondering, where is this conversation going?)
Grandson - What are you going to do for money, how are you going to live?
Reply from me - I have investment properties.
Grandson - Oh like Dad at xxxxx street.
That was the end of the conversation as he had no further interest. One little seed planted I hope.