What do I mean when I say you need to know your numbers? Let me explain.
You pull out your favourite pair of jeans that you haven’t worn for a while and you can’t quite get the zip up. No, they haven’t shrunk, you have expanded (put on weight…). So you decide to do something about it.
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?
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.
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.
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 →
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 →
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?
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.
Teenager’s awareness of family financial issues seems to be on the rise. Concern over parent’s ability to put food on the table, a decrease in the availability of part time work has been reflected in the Auckland university survey. Does this really mean the problem is getting worse? Or are parents communicating to their teens more about financial matters than they have in the past?
A recent university of Auckland survey of 8,500 teenagers in 91 secondary schools as quoted in the NZ Herald has found some interesting (but maybe not surprising) results around what is happening in the household around money. Teenagers are less likely to have a part-time job than the teenagers in 2001, where 49% of them had jobs compared to 26% in 2012.
It is quite easy to look at this statistic and say it is simply due to the global recession so there is less work around for teens, although I am sure there is an element of truth to that.