Is 5 years old too young to start eductaing about money
- Thread starter Dan_p
- Start date
In my view - and I don't have children - it's not about education per se. It's about exposure.
Taking a kid with you when you inspect houses, negotiate purchases, arrange financing is probably much more useful than telling him "you need to save money", "you need to work hard" etc. If you are a business operator, that makes it a lot easier as you can take him to your businesses.
In short, I don't think there's better education than exposure, even if it's just sitting there and not appreciating exactly what's happenning. If he sits around when you and your partner talk about your business plans, the kid will learn.
Agree. Another influential thing is the people around you - friends, relatives, peers, peers parents, neighbours.
If these people have a negative view of investment and money (tall poppy complex, thinking investments and wealth are not in reach, the rich are thieves
), or they have accumulate no or little wealth, then this is very likely to have an effect on how they think as well.If they associate with people who are successful in creating wealth from a young age, this will appear more the norm, and they'll pick up on ways that help them do the same later.
The same could be said for influence/forming views on education, politics, behaviour, etc.
IMO, environment plays a big part.
My kid's way above his age in maturity and brains, is great at sport and an excellent scholar who will be going to Scotch College a year ahead of when he should be.
So, I don't need to teach him much; he knows it all already.
Did I tell ya's he could play the piano at aged 3?
So, I don't need to teach him much; he knows it all already.
Did I tell ya's he could play the piano at aged 3?
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Thanks for pointing that out. I will do better next time
Have done it myself in the thread title previously....impossible to edit once you hit save
Bumped into the kid at the supermarket last night.
She'd found some money and was scouring the chocolate aisle for something that was the exact value of what she found.
I told her she could put it in her moneybox until she has more and buy something bigger but noooooooooooo she *has* to spend it.
She'd found some money and was scouring the chocolate aisle for something that was the exact value of what she found.
I told her she could put it in her moneybox until she has more and buy something bigger but noooooooooooo she *has* to spend it.
Junior is now 8. Has been playing Monopoly for years and at age 6 moved on to the adult version of Cashflow - skipped the kids version all together.
We give her 2 lots of money each week - one goes into a savings jar and one goes onto a spending jar. The savings then goes in the bank when at a decent sum, and the spending she can do what she likes with. It gets her used to physically saving money.
She is also very exposed to buying, selling and renovating - sits in when the real estate agent comes around and is pretty good with a roller. She recently said "when you finish renovating this house and we sell it ... ". Knows me to well!
When she reaches 13 she will get a large clothing allowance twice a year so that she learns to budget for clothing/shoes etc - can get one Billabong T-shirt or 3 Targets T-shirts ...
As soon as she's old enough to get a job the pocket money will stop, but the clothing allowance will continue until she leaves school.
I don't think they are ever too young - but as mentioned above - exposure so that it becomes the norm is very important. It's not so much about reading books - it's about doing.
We give her 2 lots of money each week - one goes into a savings jar and one goes onto a spending jar. The savings then goes in the bank when at a decent sum, and the spending she can do what she likes with. It gets her used to physically saving money.
She is also very exposed to buying, selling and renovating - sits in when the real estate agent comes around and is pretty good with a roller. She recently said "when you finish renovating this house and we sell it ... ". Knows me to well!
When she reaches 13 she will get a large clothing allowance twice a year so that she learns to budget for clothing/shoes etc - can get one Billabong T-shirt or 3 Targets T-shirts ...
As soon as she's old enough to get a job the pocket money will stop, but the clothing allowance will continue until she leaves school.
I don't think they are ever too young - but as mentioned above - exposure so that it becomes the norm is very important. It's not so much about reading books - it's about doing.
My kid's way above his age in maturity and brains, is great at sport and an excellent scholar who will be going to Scotch College a year ahead of when he should be.
So, I don't need to teach him much; he knows it all already.
Did I tell ya's he could play the piano at aged 3?
Wow, he must be Asian.
PS: reference to how hard modern day Asian parents push their kids. Oh and their first choice is usually Scotch if they can afford it.
Not to mention the piano lessons.
We did something like this, but have yet to start with our 13yo (probably because he was born Mr. Thrifty
).The eldest did end up resorting to checking out prices and buying brand names on special because of this, or buying 1 brand name and 2 no name brands. Fortunately around here, it doesn't seem to be a stigma not wearing brand name everything
.Giving out this money had nothing to do with chores, either.
We instead sent out the message that if you live here you contribute to the upkeep and clean up after yourself. They may have needed reminding at times, but they never say no - so far, so good with the way things have worked out.
Dear Dan and Nan
This reply is from a mature
, retired early mother of 2 grown children who saved their own deposit and purchased their own PPOR or built their own PPOR with their parents help and guidance.Give your kids pocket money and school lunch money so they can learn to choose and purchase at the school canteen or whatever.
Any windfalls can be banked eg. birthday money.
When 15/16 years old...
Help them obtain an after school job, charge them a small amount of board and set up an automatic split of their pay, half they can spend half is saved which they cannot touch, tell them it is for a house deposit and monitor the saving.
The amazing thing is the kids don't miss the pay being automatically saved and every so often have a discussion with the kids re how much they need to save as the amount changes each year as houses go up.
Help them (don't give them the whole $ lot) with the purchase of their own second hand car or hand the family car down the line as they learn to drive na gain their licence.
I did not let our kids go out and get a loan for a car, they had to save for it.
They didn't get a credit card until 24 years of age and they had to pay off in full each month.
Counting coins and notes is a good way to learn about numbers.
Addition, subtraction, minus and division.
regards
Sheryn
Some good advice here - and it shows in the kids attitudes.
Mine - when she was around 6 - announced that her savings money was to buy either a house or a horse when she was older, she hadn't decided which at that stage. She's got a few thou in the bank now - and we will not heistate to supply her with an interest free loan for the balance of a house deposit (or go guarantor) as required in the 10 years time.
With hubby's older kids, we don't mind lending them money to buy their first car etc interest free ... but the rules are that the money must be paid back within 2 years and that they have to make a regular (weekly or fortnightly) payment.
Slacked off a bit on that rule when eldest borrowed for moving costs with new job as she vowed it would be paid back within 3 months - has now been 2 months and yet to see a dollar - might have to prompt it after Christmas.
Mine - when she was around 6 - announced that her savings money was to buy either a house or a horse when she was older, she hadn't decided which at that stage. She's got a few thou in the bank now - and we will not heistate to supply her with an interest free loan for the balance of a house deposit (or go guarantor) as required in the 10 years time.
With hubby's older kids, we don't mind lending them money to buy their first car etc interest free ... but the rules are that the money must be paid back within 2 years and that they have to make a regular (weekly or fortnightly) payment.
Slacked off a bit on that rule when eldest borrowed for moving costs with new job as she vowed it would be paid back within 3 months - has now been 2 months and yet to see a dollar - might have to prompt it after Christmas.
There is some great stuff in these posts, especially for me as our kids are pretty young and we want to start early.
I reckon lessons on money are all about delayed gratification (and making choices). It is pretty easy for kids to grow up in our instant-everything world without learning how to delay gratification, which I reckon is a crucial skill for future success.
My four-year-old began doing his 'job' - unloading the cutlery from the dishwasher -every day from the day he turned 3. He gets paid $2.50 a week, which is enough for a matchbox car when we go to the supermarket each week.
Then, about a year ago, he decided he really wanted something bigger, a tonka truck that cost $25. I told him he would have to save up and for how long. Each week at the supermarket he would pick up a matchbox car, stare at it, then put it back, announcing, "No, I want to save my money for the tonka truck." And he managed to save for 10 weeks to buy the tonka truck. I was very impressed. Thank God they still had them in stock!
Cheers Ali
I reckon lessons on money are all about delayed gratification (and making choices). It is pretty easy for kids to grow up in our instant-everything world without learning how to delay gratification, which I reckon is a crucial skill for future success.
My four-year-old began doing his 'job' - unloading the cutlery from the dishwasher -every day from the day he turned 3. He gets paid $2.50 a week, which is enough for a matchbox car when we go to the supermarket each week.
Then, about a year ago, he decided he really wanted something bigger, a tonka truck that cost $25. I told him he would have to save up and for how long. Each week at the supermarket he would pick up a matchbox car, stare at it, then put it back, announcing, "No, I want to save my money for the tonka truck." And he managed to save for 10 weeks to buy the tonka truck. I was very impressed. Thank God they still had them in stock!
Cheers Ali
I think you missed the joke.
...
This thread makes me feel a bit ill. Let your kids be kids for farks sake!
