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Kids and the Value of Money

It's never too early to educate your children in the fine art of budgeting, money management & reaping what you sow.

I have a 10 year old daughter who was asking about the pension last night and how no-one could be expected to live on less than $250 a week. She said that you wouldn't even pay for the rent on this house we are so fortunate to live in, let alone pay the bills or buy food. It's wonderful to see her give money to various charities without blinking an eyelid.

I have a 8 year old son who at the tender age of four walked into a bargain, clearance store and walked out yelling at the top of his head "What a rip-off they just sell junk here! "
He now waltzs into the local branch of his bank & proudly tells the teller, "I'm saving to buy a house I want to live in with my wife and children one day"

How about others with children (don't have to be your own) what are some light-hearted examples you can share?

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Replies to This Discussion

Permalink Reply by Bandwidth on August 19, 2008 at 2:04pm

If we start with our children it will change, over time :-)

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Permalink Reply by Manish Dev on August 19, 2008 at 6:17pm

But how do we shift from idolising sporting stars to idolising those who are talented in other fields - like businesspeople, scientists, philosophers, politicians, etc. These are the people who have a real impact on society, yet get so little attention compared to sports stars - who change very little by chasing balls around.

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Permalink Reply by Bandwidth on August 19, 2008 at 7:01pm

We praise them in front of our children.

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Permalink Reply by Mary M on August 19, 2008 at 7:33pm

Your children listen to you???!?!? ;)

Seriously though Bandwidth, I don't think it's that easy to change 100s of years of idolising sports stars. It's ingrained in our culture now to not only hold sports stars in high regard, but also to be jealous and scornful of the intelligent and rich.

Perhaps it's the convict in us all??

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Permalink Reply by Bandwidth on August 19, 2008 at 9:20pm

No one said anything worth while was easy

A long journey starts with a first step, often a couragous step. :-)

To become ingrained in to a culture something had to be reinforced over a number of generations so maybe we can start something.

Also my aim was to bring up independent achievers, regardless of the culture around them.

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Permalink Reply by Bandwidth on August 19, 2008 at 9:25pm

At the time I didn't think so

Whether the children seem to be listening or not the message slowly sinks in.

My children are no longer children and have a high respect for achievers in all walks of life. They have little time and or respect for knockers and or hangers on

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Permalink Reply by OzWiz on August 20, 2008 at 6:50pm

I started our child off early with a little 'pocket money' 20c - 50c etc. then when he was about 4 made it a regular thing of about $1.00 a week, but with the rule that some no matter how small had to go into the 'bank' tin each week, and gradually built up to $30.00 a week when he turned 15 (but he had to pay for his mobile phone and a few other things then too). This system still works with him banking some money in the bank tin each week, which is then banked every couple of weeks. This way he got used to managing his own money and we ran with ann Excel spreadsheet (because he was computer mad) which was brightly coloured and more inviting than a normal bank statement. We had all the 'ins' and 'outs' in there and a balance so he could get used to seeing how they worked. Due to this, he has just turned 15 and he already has a few hundred dollars in his super fund and a few thousand (about $10,000) in the bank and is using an internet saver account where he get high interest right from the first dollar in the account - he is now making money from money! He is also interested in the sharemarket and other money matters - although as yet he does not own shares but that may come with time. He used to love looking at the spreadsheet initially because it was colourful and pretty and then he got to like to see the money balance column getting bigger and bigger - now he would have enough to buy his first car later on, but he is still saving so hopefully he can buy a car and still have investments. He was also encouraged not to support 'cheap shops' because as he found out very early, most of the toys from these shops only last a few weeks. He learned to save for the 'better' toy or game.

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Permalink Reply by Bandwidth on August 20, 2008 at 7:26pm

Wow well done OzWiz.

You have a real tycoon on your hands. you have taught him lessons most of us never learn. The minority that learn, learn it later than your son.

Your son understands the real value of money, a lever to achieve anything he wants in life.

I hope he buys his car with the proceeds from his capital, as opposed to the capital

You should run lessons to teach other parents. A great story make ift fun and rewarding.

Well done, you have invested well in our country's future generation.

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Permalink Reply by Kate Pettiford on March 25, 2009 at 12:45pm

Hi Everyone

I agree with everything you have all said - its really important to get your kids to understand the value of savings thier money and strong money management from an early age.

Suncorp has recently launched thier kids savings site, which help parents to educate thier kids about money management but keeps it fun at the same time - check it out - www.suncorpkids.com.au

You dont have to be a Suncorp customer to use it either!