Money Beliefs, where do they come from?

Our beliefs, or our view of the world starts with our early childhood memories.  We learn from our parents, our environment and form our own beliefs from those observations.  So what are your earliest memory’s of money? How do you think that has impacted on how you relate to money now in your adult life?

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My earliest memories of money revolve around the word ‘No’.  No I couldn’t have the umbrella with the pink frill; the must have winter fashion accessory for a 4 year old.  No, I couldn’t have a Barbie doll, they were too expensive, so I got the imitation one instead.

My parents were (and still are) very careful with their money, they were quite frugal in day to day expenditure but that meant that there was money set aside for our holidays and should any emergency crop up.

Their goal was to be mortgage free, as they hated any sort of debt and over the years they achieved that goal.

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Financially supporting our Children. When does it stop?

It is an exciting day and also tinged with a bit of sadness when our children leave home. Maybe they are off to see the world, heading to university or flatting with their friends.  Does this mean we stop supporting our children financially?  This question can become the elephant in the room for many families.

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The short answer seems to be no we don’t stop supporting them financially!  Among friends and clients it seems many of us with adult children are still helping out in one way or another.

The agreement we had with our children was we would support them during university and after that they were on their own.  Sounded like a really good plan at the time, but over the years it hasn’t quite worked out that way.  The number of parents in the same boat as us seems to be growing.

The old adage of children leaving home at 18 or when they finish their tertiary education and supporting themselves, has disappeared for a high percentage of parents.  We are faced with the dilemma of supporting our children for longer than originally thought.  This can cause friction between the parents.

This story was told to me in a humorous way, but there were serious undertones.

“Our son came back from overseas, no money, no job, so of course we welcomed him back home.  Six months later he is still here, he has a job, but isn’t contributing a penny. Continue reading

Pocket money for children; 9 tips to think about

As I discovered when chatting to a group of parents about pocket money, the topic can get quite emotive and there are lots of different views about how much, when to start and whether or not to ‘pay ‘children to do chores.

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Everyone in the group gave their children pocket but the amount was the tricky part. It seemed to be linked more to peer pressure about what everyone else was getting, rather than what the parents thought was appropriate.

This story from one Mum really highlighted the children’s understanding of the value of money.  “It was Xmas and the kids got an envelope with $20 in it from their aunt.  The 11 year old got mildly excited about $20.  The 7 year old thought it was a lot of money and the three year old wondered why his aunt had given him a pretty picture”. Continue reading

It’s Christmas, let’s go shopping!!

Don’t you love this time of year, Christmas is coming, so it’s all about spend, spend, spend, shop, shop, shop and worry about paying for it next year.  I am sure it is not just us girls who feel like this. How do we survive this sensory overload that seems to compel us to spend more money than we have?

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The pressure to purchase Christmas presents for everyone is huge at this time of year.  All our children or grandchildren need the latest toys; men need the latest gadget, and every girl regardless of age need jewellery, that’s what the advertisers tell us…

Here are a few tips to help you save money when you go Christmas shopping.

  1. Spending is emotional. When it comes to money, typically our feelings rule our actions, thoughts come later. Neuro scientists say you make spending decisions up to 10 seconds before you are consciously aware of them.  So before opening your wallet count to 10 slowly!
  2. Don’t use credit cards. Credit cards separate the pleasure of spending with the pain of paying; we are natural optimists and tell ourselves we can pay the whole credit card off when it falls due.  Then the boundaries slip a bit, one month becomes three, then six and in the meantime the interest cost is increasing.  Research shows that credit card users significantly underestimate how much they owe, one study showed cardholders admitting to $4 out of every $10 they owe, don’t fall into that trap. Continue reading

As a child, what is your earliest memory of money?

Our beliefs, not just about money, but on how we use language, our view of the world all starts with our early childhood memories and the beliefs we formed from those observations.  So what is your earliest memory of money, and how do you think that has impacted on how you relate to money now in your adult life?

My earliest memories of money revolve around the word ‘No’.  No I couldn’t have the pink umbrella with the pink frill the must have winter fashion accessory for a 4 year old.  No, I couldn’t have a Barbie doll, they were too expensive, and so I got the imitation one instead.

My parents goal was to own their own home mortgage free, and to their credit they achieved that.  But it did mean we moved house a lot and each time we traded down, so the mortgage kept getting smaller.  By the time I was at university they were debt free and have been ever since. Continue reading

Children and Money: To Teach or Not to Teach…

Financial literacy for children is a hot topic.  Start them young so they learn to save not spend, is one school of thought.  But what if as a parent you are struggling with your own financial literacy can you be a positive role model?

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Children and money is always a very interesting topic of conversation.

The question of what to teach children about money and when to start is something I am asked quite frequently in my role as a money mentor.

I really like Rob Stocks article Cents and Financial Sensibility , his 10 point checklist, whilst somewhat tongue in cheek, does have a few gems in it.

Teaching your children financial literacy should go hand in hand with their understanding of maths. There is no point trying to teach the value of $20 or what you can buy with it if the child can only count to 10.

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