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Teaching Kids About Money · She's On The Money

0:00
Speaker 1: She's on the Money. She's on the Money.
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Speaker 2: Hello, and welcome to She's on the Money, the podcast
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Speaker 2: for millennials who want financial freedom. As we've learned over
0:30
Speaker 2: the journey of this podcast, our money stories are largely
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Speaker 2: influenced by the way we were brought up and by
0:35
Speaker 2: the example that was set for us by our parents.
0:39
Speaker 2: Maybe they were tired on cash so we've learned to
0:41
Speaker 2: become really good savers. Or maybe we had everything handed
0:44
Speaker 2: to us growing up, so we've never really understood the
0:46
Speaker 2: value of money. No matter your story, it's really hard
0:49
Speaker 2: to deny that the people who brought us up play
0:52
Speaker 2: a huge part in our relationship with finance. So how
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Speaker 2: can we teach our kids about money so they understand
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Speaker 2: the basics before they're out in the real world. My
1:01
Speaker 2: name is Georgia King, and joining me to help answer
1:04
Speaker 2: these questions and plenty more is financial advisor Victoria divine V.
1:09
Speaker 3: Hello, Hi, tool.
1:11
Speaker 2: Why is it so important that we make an effort
1:14
Speaker 2: to teach our kids about money before they're all grown up?
1:16
Speaker 2: Because I said.
1:17
Speaker 3: So, No, it's super important to be teaching our kids
1:22
Speaker 3: about money because that's where our money story comes from.
1:25
Speaker 3: Our money story, and I've said this on the podcast,
1:27
Speaker 3: and I'm sure it'll come up a lot in this episode.
1:30
Speaker 3: Our money story starts to solidify at the age of seven,
1:34
Speaker 3: which means we need to be learning about money.
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Speaker 2: Far before school, far before.
1:38
Speaker 3: We actually start using money and start actually earning it ourselves.
1:44
Speaker 3: So it makes a lot of sense that if you're
1:46
Speaker 3: a parent or you're in charge of some children, you
1:49
Speaker 3: start teaching them good money habits young, because they usually
1:53
Speaker 3: start in the home. So it's one of those things
1:55
Speaker 3: where you know, it's a little bit fickle, and there's
1:58
Speaker 3: no such thing as right or wrong when it comes
2:00
Speaker 3: comes to money. And I'm sure we'll get into the
2:01
Speaker 3: grand debate of pocket money very shortly, Georgia.
2:04
Speaker 2: But at the end of the.
2:05
Speaker 3: Day, unfortunately, our money story starts before we get to school.
2:10
Speaker 3: And then on top of that, I believe that the
2:12
Speaker 3: school system is letting us down when it comes to
2:14
Speaker 3: teaching us holistically about money. So it kind of falls
2:17
Speaker 3: back onto us to do that job.
2:20
Speaker 2: For anyone brand new to the podcast week, can you
2:23
Speaker 2: just give us a little refresher on what money stories
2:25
Speaker 2: actually are.
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Speaker 3: So, money stories are the thoughts that values, the beliefs,
2:29
Speaker 3: and the behaviors that you hold to be true around money.
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Speaker 3: So these are the things that have been ingrained in
2:36
Speaker 3: you since the very beginning. So if you grew up
2:38
Speaker 3: in a family where money was really tight, maybe you
2:42
Speaker 3: get a little bit of a sick feeling in the
2:44
Speaker 3: bottom of your stomach every single time someone mentions money
2:47
Speaker 3: or splitting the bill. But if you grew up in
2:49
Speaker 3: a family where money was in abundance, maybe you've never
2:52
Speaker 3: worried about money and you slipped really easily into debt
2:55
Speaker 3: because you grew up with credit cards around you. They're
2:57
Speaker 3: really easy to use. You just tap and go right.
2:59
Speaker 3: There's no form of repercussion around that. So money stories
3:03
Speaker 3: are the things that are ingrained in us, and they
3:05
Speaker 3: are made up of, as I said, the thoughts, the values,
3:07
Speaker 3: the beliefs, and the behaviors. But when it comes to
3:10
Speaker 3: money stories, your beliefs and your values are two very
3:14
Speaker 3: different things. So your beliefs are the things that are
3:17
Speaker 3: ingrained in you and you've grown up with. Then you
3:19
Speaker 3: might believe that money is evil, or you might believe
3:22
Speaker 3: that money is inherently bad, But your value around money
3:26
Speaker 3: is creating wealth. So therefore there's a bit of a
3:29
Speaker 3: disconnect in your beliefs, and then your values, because you
3:32
Speaker 3: value creating wealth and investing and you really want to
3:34
Speaker 3: do that, but inherently you feel a little bit sick
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Speaker 3: about money because your belief underlyingly is that money is
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Speaker 3: bad and investing is bad, and it might be related
3:44
Speaker 3: to greed. So we really need to work through these
3:47
Speaker 3: two things and actually be able to separate them out
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Speaker 3: and understand where our beliefs have come from and challenge
3:52
Speaker 3: our own beliefs to say, Georgia, that belief you hold,
3:56
Speaker 3: is it actually true? And if it is true, is
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Speaker 3: it something that you grow? What are we actually aiming
4:02
Speaker 3: for here? And a lot of this is going to
4:04
Speaker 3: be picked up in early childhood, so it's not something
4:07
Speaker 3: we choose. It's not ever our fault, but our money
4:10
Speaker 3: story is ingrained. But the thing that is really cool
4:14
Speaker 3: about money stories is that you can change them. So
4:17
Speaker 3: we can't change the past, but we sure as hell
4:20
Speaker 3: we can change the future, and we can create the
4:22
Speaker 3: money story that we want to align to. So for me,
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Speaker 3: that's why talking about money with kids and talking about
4:29
Speaker 3: it from the very beginning is so important.
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Speaker 2: So from an overarching perspective, then, V, what would you
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Speaker 2: say the main money. Lessons that we should be imparting
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Speaker 2: on our kids are so.
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Speaker 3: First things first, I think the value of money and
4:42
Speaker 3: all of the things that I'm going to say right
4:45
Speaker 3: now are going to be a lot easier said than
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Speaker 3: they are done. Because as much as you can say, oh,
4:50
Speaker 3: it's so important to teach your kids about the value
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Speaker 3: of money, okay, how like that is something that is
4:55
Speaker 3: so hard, and it's also so hard in an economy
4:59
Speaker 3: we're in twenty t twenty one. Everything is card based.
5:02
Speaker 3: We aren't really a cash society like historically we were.
5:06
Speaker 3: Whereas you know, I'm not that old, I don't think.
5:09
Speaker 3: I mean a lot of our listeners would probably look
5:11
Speaker 3: at me and be like, oh, my gosh, thirty, she
5:14
Speaker 3: is ancient. But that is not the case at all.
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Speaker 3: But I remember when I was younger and we're on
5:17
Speaker 3: school holidays and Mum would give us like two dollars
5:20
Speaker 3: and we'd get two dollars each, my sister and I
5:22
Speaker 3: and we go down to the shops in Tazzi and
5:24
Speaker 3: we'd get two dollars worth of hot chips together, and
5:27
Speaker 3: then we'd go halves because that was dollar each for
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Speaker 3: hot chips, and then we'd have a dollar for lollies,
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Speaker 3: And I mean we probably didn't get as many lollies
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Speaker 3: as my parents got if they ever had a dollar
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Speaker 3: to spend at the shops. But at the end of
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Speaker 3: the day, I remember learning the value of money and
5:42
Speaker 3: what it could get for me and the fact that
5:44
Speaker 3: I could exchange money for goods or services, and for me,
5:48
Speaker 3: that was a really big part of my life. And
5:51
Speaker 3: as time goes on, I started to learn the value
5:54
Speaker 3: of you know, saving up for a top that I
5:56
Speaker 3: really wanted from Seprey, which had like the see on it,
6:01
Speaker 3: Like yeah, it was iconic, and I really wanted those
6:04
Speaker 3: big belts like do you remember the Like yeah, they
6:06
Speaker 3: were made of stretchy material. They were horrendous.
6:09
Speaker 2: They were heinous, but they were heinous, stunning at.
6:11
Speaker 3: The time, stunning, like supreme. I would wear them to
6:16
Speaker 3: the roller disco. But I started to learn the value
6:19
Speaker 3: of money because I realized it could help me get
6:21
Speaker 3: the things that I wanted. But it's really hard to
6:24
Speaker 3: teach kids about the value of money now because again
6:27
Speaker 3: it's just tap So we need to be a little
6:29
Speaker 3: bit more creative. We need to be able to start
6:32
Speaker 3: to impart these things on a more regular and ongoing basis.
6:36
Speaker 3: I think another thing that is really important to teach
6:39
Speaker 3: kids is budgeting and what that actually means, and not
6:41
Speaker 3: teaching them that it is something that restricts us, but
6:44
Speaker 3: rather something that helps us align our values and our
6:48
Speaker 3: goals to what we're trying to achieve. So maybe that
6:51
Speaker 3: is sharing with the kids what grocery shopping looks like,
6:54
Speaker 3: and this is the budget we have, and how are
6:56
Speaker 3: we going to allocate that, and can we actually get
6:59
Speaker 3: these snacks that they in budget or are they not.
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Speaker 3: It's not necessarily about teaching kids that we can't afford that,
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Speaker 3: And I mean that's a really valid lesson as well.
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Speaker 3: But at the end of the day, usually a budget
7:11
Speaker 3: is not about we can't afford that, but rather we're
7:14
Speaker 3: not prioritizing that, and why and what are we prioritizing
7:18
Speaker 3: over that? And I might say to you, Georgia, those
7:20
Speaker 3: fancy snacks are not actually in our budget at the moment,
7:22
Speaker 3: because remember we were really trying to save to go
7:24
Speaker 3: on that family holiday to the beach in a couple
7:26
Speaker 3: of weeks.
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Speaker 2: Like don't forget, Like if.
7:28
Speaker 3: We save the money now, we're going to be able
7:31
Speaker 3: to do a few more fun things on that trip together.
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Speaker 3: And I think it's about really explaining to kids what
7:37
Speaker 3: that means, because as a child and as someone who
7:40
Speaker 3: doesn't fully comprehend the value of money, they're going, well,
7:43
Speaker 3: why not, why are you personally stopping me from getting
7:47
Speaker 3: something I want? And it's not about that. It's actually
7:50
Speaker 3: about them understanding how money works and teaching them about
7:55
Speaker 3: gratification and what delayed gratification could look like, because that's
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Speaker 3: the thing that's actually going to serve them well into
8:01
Speaker 3: their future. I think also work ethic comes into this
8:05
Speaker 3: as well, when you're talking about saving and budgeting and money,
8:09
Speaker 3: explaining to them where money comes from, the fact that
8:12
Speaker 3: you works really hard for that and that you are
8:14
Speaker 3: trading your time for money. And I think that that's
8:17
Speaker 3: why I'm such a positive advocate of pocket money. And
8:20
Speaker 3: I know that it's a very topical conversation because some
8:23
Speaker 3: people don't believe in it. Some people do, whereas I'm
8:26
Speaker 3: more of the opinion that you do need to give
8:28
Speaker 3: kids a level of responsibility so that they can learn
8:32
Speaker 3: how to save themselves and they can learn how to
8:34
Speaker 3: earn money, whether that's a set amount of chores or
8:38
Speaker 3: a set amount of things or maybe there's a certain
8:41
Speaker 3: amount that you pay them to wash your car. But
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Speaker 3: I do believe very inherently that pocket money is in exchange.
8:48
Speaker 3: It's not paying your kids to exist. It's not paying
8:50
Speaker 3: them because they should have their own income. It's paying
8:53
Speaker 3: them because they might be doing something, and I think
8:56
Speaker 3: it needs to be something. Again, this is all very personal,
9:00
Speaker 3: and I'm not someone who has kids yet, so who knows.
9:03
Speaker 3: Maybe in a few years when I have kids, this
9:04
Speaker 3: will go out the window and my opinions will change.
9:07
Speaker 3: But I think it's also not about contributing to the
9:11
Speaker 3: household in general. So like Georgia, if you and I
9:14
Speaker 3: live together, I would fully expect you to be contributing
9:17
Speaker 3: to the household. Like we used the dishwasher together, so
9:20
Speaker 3: we have to empty the dishwasher together. It's above and
9:23
Speaker 3: beyond tasks that are potentially rewarded with pocket money, if
9:27
Speaker 3: that makes sense. Yep, Like I don't want to pay
9:29
Speaker 3: you to do something you should have been helping me
9:31
Speaker 3: with anyway.
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Speaker 2: Ah.
9:33
Speaker 3: I think the final thing I really want to impart
9:35
Speaker 3: on the younger generation or children is credit and what
9:38
Speaker 3: that means, and not just teaching them that credit is good,
9:41
Speaker 3: but rather the fact that it's not just a free
9:44
Speaker 3: money tip, it is actually something that you're delaying, and
9:48
Speaker 3: there's you know, implications of that. So teaching them the
9:51
Speaker 3: value of saving for things and wanting them as opposed
9:54
Speaker 3: to instant gratification. And I just feel like not enough
9:58
Speaker 3: children and young people are taught the dangers of credit
10:01
Speaker 3: and going into debt and what that actually means for
10:04
Speaker 3: their financial future. Because also it's very hard to teach
10:08
Speaker 3: someone about a financial future when they've never had any
10:11
Speaker 3: emotive response to finances before. Like Jorgia, I could sit
10:15
Speaker 3: you down when you were like twelve and try and
10:18
Speaker 3: explain all these things and how dangerous it is, and
10:20
Speaker 3: it's kind of like cool, mum, I'll hold your hand
10:23
Speaker 3: while across the road if that's the rules. Like, they
10:25
Speaker 3: just don't care as much because they've never had to
10:28
Speaker 3: comprehend what that might mean. And I think that for
10:31
Speaker 3: us as adults is really hard to comprehend because for
10:34
Speaker 3: us it's often a really emotional conversation because we've been
10:37
Speaker 3: through that, whereas the kid's kind of like, okay, can
10:40
Speaker 3: I have my pocket money? And I've been getting through
10:43
Speaker 3: that it's okay, But we really need to be ingraining
10:46
Speaker 3: those things from the very beginning, not sitting them down
10:49
Speaker 3: and being like, okay, cool, it's time to talk budgeting.
10:53
Speaker 2: Okay. So the main lessons we've got the value of money,
10:55
Speaker 2: how to save and budget, how to work hard, yes,
10:58
Speaker 2: and how credit works. So those are the lessons we
11:01
Speaker 2: want to instill in our kids. How do you actually
11:05
Speaker 2: how do we teach them? Oh my gosh.
11:07
Speaker 3: There are so many different ways to teach kids about money,
11:10
Speaker 3: but probably the most important thing to do is highlight
11:12
Speaker 3: that kids are little sponges and they are very likely
11:16
Speaker 3: to follow what their parents do. And as you said,
11:19
Speaker 3: Georgia in our very elaborate introduction today for this podcast,
11:22
Speaker 3: money stories are so often informed by the way that
11:25
Speaker 3: we're brought up, and you cannot, you literally cannot underestimate
11:30
Speaker 3: the influence that you can have on your kids. Like
11:32
Speaker 3: at the end of the day, as I said, they
11:34
Speaker 3: are tiny little sponges, and they are going to soak
11:37
Speaker 3: up your values, your beliefs, the things that you want
11:40
Speaker 3: to do, whether they are good or bad. They're going
11:43
Speaker 3: to take on your tone of voice, they are going
11:45
Speaker 3: to take on the things that you know you hold.
11:48
Speaker 2: To be true.
11:49
Speaker 3: So I think the hardest thing about this, and teaching
11:52
Speaker 3: your kids about money is actually the confrontational piece. That means, hey, gee,
11:58
Speaker 3: if you're going to teach your future kids about money,
12:00
Speaker 3: you've got to be pretty comfortable with it yourself. You
12:03
Speaker 3: need to be on top of your budget, you need
12:05
Speaker 3: to be on top of your cash flow. You've got
12:07
Speaker 3: to be comfortable teaching this because if you're inherently not
12:11
Speaker 3: doing the right thing for you, how are you going
12:13
Speaker 3: to impart on somebody else these values that you hold
12:18
Speaker 3: to be so important. So, Georgia, with all of that
12:22
Speaker 3: in mind, I think the most important thing here is
12:24
Speaker 3: to just be really conscious of your personal behaviors around
12:27
Speaker 3: money and remember that little people and their little eyes
12:30
Speaker 3: are literally always watching, and that your actions are often
12:34
Speaker 3: speaking louder than your words are. So you could tell someone, hey, Georgia,
12:38
Speaker 3: like it's really important to budget. But then if you're
12:41
Speaker 3: not doing that yourself, you're not exactly showing them how
12:44
Speaker 3: to model that behavior, like, you are not showing them
12:47
Speaker 3: that those are the right steps to be taking. You're
12:50
Speaker 3: saying one thing and doing another. And I promise kids
12:52
Speaker 3: do really pick up on that. So as kids get
12:55
Speaker 3: older and have more comprehension of money and how it
12:58
Speaker 3: actually works. On a base level, You could actually start
13:01
Speaker 3: involving them in your money management, which can be really
13:05
Speaker 3: confronting because, as I said before, involving somebody else in
13:09
Speaker 3: your money management is only going to be something that
13:11
Speaker 3: you're comfortable with if you are comfortable with your own
13:13
Speaker 3: money management at the beginning, Whereas if you're spiraling out
13:16
Speaker 3: of control, the last thing you need is a thirteen
13:19
Speaker 3: to sixteen year old coming in and being like, what
13:21
Speaker 3: are you doing with your money? Like I would simply
13:23
Speaker 3: pass away. So I think the most important thing here
13:27
Speaker 3: is really understanding yourself and your money story so that
13:31
Speaker 3: you can start to pass that down a generation, which
13:34
Speaker 3: is actually really special. And when I say involve them
13:38
Speaker 3: in your money management, that could mean a number of things.
13:40
Speaker 3: So it could just be the money conversations around the
13:42
Speaker 3: dinner table that you're going to start having. It could
13:45
Speaker 3: also be involving them in grocery shopping. And I say
13:47
Speaker 3: this a lot because it's actually a really easy way
13:50
Speaker 3: to segment a part of money management off from the
13:54
Speaker 3: bigger picture that has a number of different complex decisions
13:57
Speaker 3: that need to be made while still having a more
13:59
Speaker 3: rist ri did budget. If you were my daughter, I
14:02
Speaker 3: might go all right, Georgia, like, I'd love for you
14:04
Speaker 3: to help me with the money management around the supermarket.
14:07
Speaker 3: And then you've got to make decisions around how we
14:09
Speaker 3: allocate that. So we're not talking about just going and
14:13
Speaker 3: buying food. We're like, okay, have we got breakfast lunches
14:15
Speaker 3: and dinners? If kids go to school, have we got
14:17
Speaker 3: stuff for school lunch boxes? If we're having dinners? Has
14:20
Speaker 3: everybody's dietary needs been taken into consideration? You are now
14:24
Speaker 3: going to realize very quickly how expensive meat is. So
14:28
Speaker 3: how much of our budget are we going to allocate
14:30
Speaker 3: towards that? And you know, are we going to have
14:32
Speaker 3: a fancy takeaway dinner maybe once a week or is
14:35
Speaker 3: that actually not something that's within our budget? Do we
14:37
Speaker 3: need to do that once every two weeks? So, grocery shopping,
14:41
Speaker 3: as much as it's a simple task for an adult,
14:43
Speaker 3: more often than not, it's actually more of a complex
14:46
Speaker 3: process for a child or an adolescent who maybe has
14:49
Speaker 3: never experienced that, never comprehended how much a piece of
14:52
Speaker 3: roast is. And so for me, I think that that's
14:55
Speaker 3: a really powerful thing. But also when you're doing that,
14:59
Speaker 3: you need to be really open to their insights and
15:02
Speaker 3: their feedback, so not just telling them how you're doing it.
15:05
Speaker 3: Maybe they could come up with a creative idea to
15:08
Speaker 3: lower the budget. Maybe they're going to suggest, oh, well, actually, mum,
15:12
Speaker 3: I've been thinking we could do like a meat free Monday,
15:15
Speaker 3: and on Mondays we do like meat free tacos. I
15:19
Speaker 3: think that that could be a really creative way for
15:22
Speaker 3: them to get involved but also feel like they're having
15:24
Speaker 3: an impact. And it's so important to make sure that
15:28
Speaker 3: if you're going to involve your children in the money
15:31
Speaker 3: management of your home, you're not just doing it at
15:34
Speaker 3: a token level.
15:35
Speaker 2: I feel like that's a really hands on way of
15:37
Speaker 2: getting the kids involved as well, and it also kind
15:40
Speaker 2: of teaches them how marketing works as well. Like when
15:43
Speaker 2: you're in the supermarket and there's all the sales on
15:45
Speaker 2: some you can definitely take advantage of if that's something
15:48
Speaker 2: you were going to buy anyway, but you can also
15:51
Speaker 2: learn how to resist those sales and resist two dollar
15:54
Speaker 2: chips in the basket, because.
15:56
Speaker 3: That's actually a marketing tool. Yeah, back on to some
15:58
Speaker 3: chips without money management. I think with kids, if you're
16:02
Speaker 3: comfortable with it, and you want to involve your kids
16:04
Speaker 3: in resetting your family budget as a whole. I think
16:07
Speaker 3: it's really constructive to set your kids down and teach
16:09
Speaker 3: them about your budget and get them involved in the
16:12
Speaker 3: drawing up process of your budget and what income looks
16:15
Speaker 3: like versus what expenses look like. That is absolutely not
16:19
Speaker 3: for everybody, and that's why I'm always such a big
16:21
Speaker 3: advocate of the grocery shopping part because it's such a
16:24
Speaker 3: non confrontational way of teaching money management. But at the
16:28
Speaker 3: same time, I think it's just so important for kids
16:30
Speaker 3: to understand money management as a whole, and let's be honest,
16:33
Speaker 3: the best way to do that is to actually get
16:35
Speaker 3: into the nitty gritty of it and explain, Hey, this
16:37
Speaker 3: is how much it costs to keep the lights on.
16:39
Speaker 3: This is why your dad yells at you about the
16:41
Speaker 3: heat of being on and that you need to just
16:43
Speaker 3: put another pair of socks on. Like Like when I
16:46
Speaker 3: was young, I just had no comprehension of what that
16:49
Speaker 3: meant except for quote, through electricity bill was expensive. So
16:53
Speaker 3: I think really getting kids to understand what that means
16:56
Speaker 3: and how that works, that's going to be really constructive
16:59
Speaker 3: for them in the law. And then I guess to
17:01
Speaker 3: add on to that when we're talking about things like
17:03
Speaker 3: electricity and gas bills. If you're reviewing a bill, show
17:07
Speaker 3: your children the bills and explain how essential items like
17:11
Speaker 3: this need to be paid and how you do it
17:13
Speaker 3: and what that process looks like, and how you actually
17:16
Speaker 3: go and review a better deal. Where do you look
17:18
Speaker 3: for that? Why would you look for that? I promise
17:21
Speaker 3: you children will be so much more interested than you
17:25
Speaker 3: think they'll be, and it's for exactly the same reasons.
17:28
Speaker 3: A child likes to not play with their toys, and
17:30
Speaker 3: they're really interested in your makeup as opposed to you know,
17:33
Speaker 3: what they've got in front of you. They just have
17:36
Speaker 3: yearning for learning. I think it's really important to embrace
17:39
Speaker 3: that as well. So in terms of being a little
17:42
Speaker 3: bit more hands on, especially for the younger kids, having
17:46
Speaker 3: piggybanks is a really good idea so that they can
17:48
Speaker 3: pop their pocket money or their tooth fairy money or
17:50
Speaker 3: coins that they're found in there and actually have a
17:53
Speaker 3: tangible way of tracking those. And as I said before,
17:57
Speaker 3: credit cards. We want to start education on this really early,
18:01
Speaker 3: so explaining how cards work, debit cards, credit cards, all
18:04
Speaker 3: of the cards work, and in the age of tap
18:07
Speaker 3: and go, it's just so much harder for us to
18:09
Speaker 3: grasp the concept of money and the value of money,
18:12
Speaker 3: let alone for small kids who have potentially never seen
18:15
Speaker 3: you take money out to pay for groceries from the ATM.
18:18
Speaker 3: So teaching them about cash and how cards work and
18:21
Speaker 3: what that balance looks like is really important.
18:25
Speaker 2: How do you do that? VD? Because Hailey in our
18:28
Speaker 2: group actually asked about this, she's in a completely digital household,
18:31
Speaker 2: as most of us are. If you don't have cash,
18:34
Speaker 2: how do you teach your kids?
18:35
Speaker 3: So I think it goes back to really explaining to
18:38
Speaker 3: them what mum and dad go to work for? What
18:40
Speaker 3: mom and mom or dad and dad or just dad
18:43
Speaker 3: or just mum goes to work for. Why do you
18:45
Speaker 3: go to work to earn an income? And why do
18:48
Speaker 3: we need an income and what does that mean and
18:50
Speaker 3: how does that work? And explaining to them maybe, hey,
18:53
Speaker 3: mom does the budgeting and this is how we filter
18:56
Speaker 3: our money and on this card is about three hundred dollars.
19:00
Speaker 3: When we are going to the grocery shops, we want
19:02
Speaker 3: to make sure that all of our groceries come to
19:04
Speaker 3: below that, otherwise we're not going to be able to
19:06
Speaker 3: pay for them. So I think teaching kids about the
19:10
Speaker 3: transaction and about what that means and what actually sits
19:14
Speaker 3: behind it is really important. And don't be afraid to
19:17
Speaker 3: go back to a money system. Don't be afraid to
19:20
Speaker 3: go you know what, we're completely digital. Yes, it is
19:22
Speaker 3: a little bit harder because you're going to have to
19:24
Speaker 3: get some cash out. And the worst thing ever is
19:26
Speaker 3: when you go to an ATM, you're going to have
19:28
Speaker 3: to get cash out and it's always notes. You're not
19:30
Speaker 3: able to get change out like it's just a bit
19:33
Speaker 3: of a fickle process. But I promise you that paying
19:36
Speaker 3: your kids in cash and actually teaching them that way
19:39
Speaker 3: is going to be far more constructive. Again, there are
19:42
Speaker 3: a number of banks that have kids debit cards, so
19:45
Speaker 3: you could absolutely do that and teach them about the
19:48
Speaker 3: balance on that and what is being contributed to that
19:51
Speaker 3: and how that works and how they can check their balances.
19:54
Speaker 3: I think could also be really helpful.
19:57
Speaker 2: Do you know how old you need to be to
19:59
Speaker 2: have a card as a trunck?
20:01
Speaker 3: So there are lots of different options. I know there's
20:03
Speaker 3: a company called zap and also another option is Spriggy,
20:06
Speaker 3: which is essentially just a pocket money card, and kids
20:10
Speaker 3: from the age of six to seventeen can have those.
20:13
Speaker 3: It's going to be always managed by a parent at
20:16
Speaker 3: an upholding level because obviously they don't have complete transactional authority.
20:20
Speaker 3: But at the end of the day, there are really
20:21
Speaker 3: specific cards that you can get to teach your kids
20:24
Speaker 3: about money, and they actually often have apps that go
20:27
Speaker 3: along with them so that kids can start looking at
20:29
Speaker 3: their balances and seeing what's going on. But still as
20:33
Speaker 3: a parent, it gives you the ultimate authority, which is
20:35
Speaker 3: quite nice, so you can always do that. I think
20:39
Speaker 3: there's a lot of different options, and to be honest,
20:42
Speaker 3: every family does money differently, so not every option is
20:46
Speaker 3: going to fit your circumstances. But if Hayley wants to
20:49
Speaker 3: start teaching her kids about money and not actually do
20:51
Speaker 3: the cash thing, going and getting a card like a
20:54
Speaker 3: Spriggy card could be a really great way about going
20:56
Speaker 3: about it, so that their pocket money could go onto
20:58
Speaker 3: there and they can start track that and understanding what
21:01
Speaker 3: is there and comprehending how to spend and save and
21:05
Speaker 3: donate that. So I think that that's another really important
21:08
Speaker 3: point as well, because we're not just spending We're not
21:11
Speaker 3: just saving. There are actually a lot of different buckets
21:13
Speaker 3: we need kids to consider, because as life goes on,
21:17
Speaker 3: it's not always just about saving your pocket money. Like
21:20
Speaker 3: we might save a certain percentage, we might donate a
21:23
Speaker 3: certain percentage. We might want to actually start teaching our
21:26
Speaker 3: kids what investing means, but then also teaching them what
21:30
Speaker 3: they can spend so that when they do become an adult,
21:33
Speaker 3: they don't have that guilt associated with spending money.
21:38
Speaker 2: Okay, you mentioned pocket money there visa and it has
21:41
Speaker 2: come up a few times already today. Are you a
21:43
Speaker 2: fan or massive fan?
21:45
Speaker 3: Not?
21:46
Speaker 2: Okay, tell me why massive fan.
21:49
Speaker 3: Everybody does this differently, and I don't want you to
21:52
Speaker 3: think that because I'm a financial advisor this is the
21:54
Speaker 3: right way. Again, every family does money differently. I think
21:58
Speaker 3: from my perspective, it is really great tool that children
22:02
Speaker 3: have to work for and then they're rewarded for the
22:04
Speaker 3: work that they're doing, as you would in the quote
22:06
Speaker 3: real world. I've seen lots of different examples of the
22:10
Speaker 3: ways families allocate money and to allocate pocket money, and
22:14
Speaker 3: you know, all away from people just giving their kids
22:17
Speaker 3: a certain amount per week to you know, people going
22:20
Speaker 3: all right, well, if you do your chores, you will
22:22
Speaker 3: get that too. People going, you know what, it's only
22:24
Speaker 3: extracurricular activities. So if you go and wash my car,
22:27
Speaker 3: for example, then I will pay you to do that,
22:30
Speaker 3: and there's no set pocket money. And then I've also
22:33
Speaker 3: heard of families and I have a client that does this,
22:36
Speaker 3: that pays their child a certain amount per week to
22:39
Speaker 3: go to school. So I'm not saying that that's a
22:42
Speaker 3: lot of money by any stretch of the imagination. I
22:44
Speaker 3: think that they get like maybe it's like it does
22:47
Speaker 3: seem like a lot of money. Actually their kid is
22:49
Speaker 3: a teenager and they get fifty dollars a week. Well,
22:51
Speaker 3: the way that this family has decided to teach their
22:54
Speaker 3: child about money is mom and dad go to work
22:56
Speaker 3: to earn money. And your job right now as a
22:59
Speaker 3: teenager is to go to school and earn money and
23:02
Speaker 3: get good grades. And that is your job as a teenager.
23:06
Speaker 3: So we will pay you to do that job so
23:08
Speaker 3: that you can still enjoy life on the weekends and
23:11
Speaker 3: not do that. That is obviously something that's not going
23:13
Speaker 3: to be financially accessible for a lot of people, but
23:16
Speaker 3: I can see where they're going with it, and their
23:18
Speaker 3: child seems to be really receptive to the fact that
23:20
Speaker 3: they're like, Okay, cool, I'm going to treat my school
23:23
Speaker 3: as a job. Mom and dad go to work every day.
23:25
Speaker 3: I go to school every day, and I get paid.
23:27
Speaker 3: If they don't go to school, they don't get paid.
23:30
Speaker 3: If they don't have good performance, I eat good grades,
23:32
Speaker 3: they don't get paid, Which makes sense because the real
23:35
Speaker 3: world's a bit like that. So you know, each to
23:38
Speaker 3: their own and at the end of the day, like
23:40
Speaker 3: I grew up with pocket money, not a lot, and
23:43
Speaker 3: again it's different horses for different courses, Like it is
23:46
Speaker 3: definitely not one size fits all, and it's going to
23:49
Speaker 3: be what suits your family. But at the crux of this,
23:52
Speaker 3: my push is not necessarily saying you need to be
23:55
Speaker 3: paying your child pocket money, because that's not the case.
23:58
Speaker 3: But I do believe you you absolutely need to be
24:01
Speaker 3: teaching your child about money, and whether that means allocating
24:04
Speaker 3: them some money of their own or not, it doesn't
24:08
Speaker 3: actually matter. And I also think that if you're not
24:11
Speaker 3: in the financial position to be giving your child pocket money,
24:14
Speaker 3: that's fine. Do not feel guilty about that at all,
24:18
Speaker 3: Like you are doing the best thing that you absolutely can,
24:21
Speaker 3: and no child quote needs pocket money to learn good
24:25
Speaker 3: money habits. They do not need that growing up to
24:28
Speaker 3: become a well balanced human who can do money well. Don't,
24:32
Speaker 3: for any amount of time think that this is a
24:35
Speaker 3: necessary component. Again, completely personal decision, and I just don't
24:40
Speaker 3: want people to think like, oh, like they're gonna have
24:42
Speaker 3: to get pocket money to learn Absolutely not. There are
24:45
Speaker 3: so many different ways that you can educate children on money, Georgia.
24:50
Speaker 3: In terms of how much fee, I know it will
24:53
Speaker 3: be individual for every person. Absolutely how much though is
25:00
Speaker 3: like how much? Again, I don't think that there's a
25:03
Speaker 3: right or a wrong, and I don't think that there
25:05
Speaker 3: is a perfect amount. I think it's an amount that
25:08
Speaker 3: you guys, as the parents or the guardians, you need
25:12
Speaker 3: to make that decision, not me, not a financial advisor.
25:15
Speaker 3: It's kind of like saying, hey, Georgia, how much should
25:18
Speaker 3: I be spending on groceries?
25:19
Speaker 2: Like, yeah, I don't know.
25:21
Speaker 3: Like I think that there's no right or wrong, But Georgia,
25:24
Speaker 3: this is probably more of a personal point. I don't
25:27
Speaker 3: think kids should be getting paid to contribute to household
25:30
Speaker 3: chores that they should just be doing anyway. So like,
25:33
Speaker 3: I don't think that kids should be paid to empty
25:36
Speaker 3: the dishwasher, or clean up after the dog, or clean
25:39
Speaker 3: their rooms. Like for me, that's a base of living
25:42
Speaker 3: and existing in a home because we all should be
25:45
Speaker 3: contributing to that home. Like if you live there, that's
25:48
Speaker 3: also your responsibility. It's not the mum's job or the
25:51
Speaker 3: dad's job to clean up after you. So I think
25:54
Speaker 3: for me, it's about that above and beyond thing or
25:57
Speaker 3: explaining to them what that is for. Or you might
26:00
Speaker 3: just be giving your child money each week so that
26:02
Speaker 3: they can learn about money, but it wouldn't be tied
26:05
Speaker 3: to if you do those chores, Like those chores should
26:08
Speaker 3: be a given regardless what age should we actively start
26:12
Speaker 3: teaching our kids about money.
26:14
Speaker 2: You should do it from birth.
26:15
Speaker 3: No, that's a bit aggressive, but you best believe, Like,
26:19
Speaker 3: wait until I have babies and they come out of
26:22
Speaker 3: the womb and they'll be wearing like their female financial
26:25
Speaker 3: empowerment happens from a very early age. But at the
26:28
Speaker 3: end of the day, there's absolutely no right or wrong.
26:30
Speaker 3: If you haven't done it yet, that's totally okay. There's
26:33
Speaker 3: always time to start. There's no such thing as too late.
26:37
Speaker 3: But according to a PBS dot org article by the
26:41
Speaker 3: age of three, kids can actually grasp the basic money concepts,
26:45
Speaker 3: which kind of makes sense, Georgia, because kids love playing shops, right, Like,
26:50
Speaker 3: I feel like even younger than that, they start really
26:53
Speaker 3: comprehending what money gets you and that you swap it
26:56
Speaker 3: for things, and that that makes sense.
26:59
Speaker 2: But by the age of seven, there's.
27:01
Speaker 3: A lot of research out there that says that your
27:03
Speaker 3: money habits have started to solidify, and that your thoughts
27:06
Speaker 3: and your values and your beliefs and your money story
27:09
Speaker 3: has started to really set in. So there's no such
27:12
Speaker 3: thing as too early, but there also isn't such thing
27:15
Speaker 3: as too late. We can start at any point, but
27:17
Speaker 3: the answer, I think Georgia that we are looking for
27:20
Speaker 3: is now. And if you've never spoken to your child
27:22
Speaker 3: about money before, even if you don't have children, which
27:25
Speaker 3: a lot of people listening to this podcast are going
27:27
Speaker 3: to be like me. They're going to be young women
27:29
Speaker 3: or young people who don't have children yet. But it's
27:32
Speaker 3: kind of in the back of your mind, Like I think,
27:34
Speaker 3: it's all very complex, but at the end of the day,
27:37
Speaker 3: for me, it's actually just about making a conscious effort
27:39
Speaker 3: to teach kids about money and starting as soon as possible.
27:44
Speaker 2: Alrighty guys, we will be back after a very short
27:47
Speaker 2: break to chat through the importance of delayed gratification, and
27:50
Speaker 2: we will also be hearing some of the Shoes on
27:52
Speaker 2: the Money community's top tips for teaching your kids how
27:56
Speaker 2: to manage money. So don't go anywhere, Okay, they back
28:03
Speaker 2: into it. So Georgia in our group has asked about
28:07
Speaker 2: not a plant question, no out of it. She's asked.
28:11
Speaker 2: She's asked about the dolomites program. So basically they are well,
28:18
Speaker 2: can you explain them how they actually work?
28:20
Speaker 3: Okay, So, Georgia, Dolomites is a fickle topic. And if
28:24
Speaker 3: you've read my book recently, you know I throw it
28:27
Speaker 3: straight under the bus. And the reason I do is
28:29
Speaker 3: because longitudinal studies, so studies that have taken place over
28:33
Speaker 3: the long term, show that dolomites actually had absolutely no
28:37
Speaker 3: impact on the levels of financial literacy of Australian school children,
28:41
Speaker 3: which is something that is really disappointing but also really
28:43
Speaker 3: kind of heartbreaking because we all thought with our little
28:46
Speaker 3: yellow check books and our names on the front and
28:48
Speaker 3: that kind of like Pink pumba guy who is the
28:51
Speaker 3: dolomites guy for CommBank, We thought that that was the
28:54
Speaker 3: right thing for our children. But at the end of
28:57
Speaker 3: the day, school banking programs like the Commonwealth Dolomites Program
29:01
Speaker 3: have actually been booted from schools because they've been proven,
29:04
Speaker 3: as I said before, to not have had any impact.
29:07
Speaker 3: But at the end of the day, I think that
29:10
Speaker 3: given it's now twenty twenty one and we've been able
29:12
Speaker 3: to do these studies, things are coming into play and
29:15
Speaker 3: things are coming into place that are more constructive that
29:18
Speaker 3: are teaching children about money beyond having a little yellow
29:21
Speaker 3: checkbook that they put money into. One of the things
29:24
Speaker 3: that I really didn't like about the Dolomites program was
29:26
Speaker 3: that it was run by a bank, and a lot
29:29
Speaker 3: of that actually ended up in children taking up Combank
29:33
Speaker 3: as their bank of choice purely because that was the
29:36
Speaker 3: bank that they were exposed to for the longest period
29:39
Speaker 3: of time. They already had their account, they were already
29:41
Speaker 3: ready and set up, and when they decided to go
29:43
Speaker 3: start their first job, of course they trotted on down
29:46
Speaker 3: to Combank to open another bank account when they started
29:48
Speaker 3: a job and wanted something beyond Dolomites, because that was
29:51
Speaker 3: the only bank that they knew. So I think it
29:53
Speaker 3: was a little bit predatory if I'm being honest, and
29:56
Speaker 3: I don't think I'm the only one that thinks that.
29:59
Speaker 3: But people like their bare what investor like Scott Papers
30:01
Speaker 3: doing a really good amount of work in this space
30:04
Speaker 3: about teaching kids about money and getting into schools, and
30:07
Speaker 3: that is something that I would adore doing in the future,
30:10
Speaker 3: but the opportunity hasn't arisen just yet. So if you
30:13
Speaker 3: are listening and you are like, wow, I have the
30:15
Speaker 3: ability to help you do that, betraya slide on into
30:18
Speaker 3: my dms. But at the end of the day, I
30:20
Speaker 3: don't think that they were that powerful, and I don't
30:22
Speaker 3: think that they were productive. But that's why I'm such
30:25
Speaker 3: an advocate of parents and guardians taking charge of teaching
30:30
Speaker 3: kids about money, because there aren't a lot of programs
30:33
Speaker 3: in schools that are actually helping do that at this
30:36
Speaker 3: point in time.
30:38
Speaker 2: So when our kids are older, be and they are
30:41
Speaker 2: a little more autonomous, maybe they've started a part time job.
30:45
Speaker 2: How can we guide them at that stage of their
30:48
Speaker 2: adolescence without kind of controlling them and cramping their style.
30:52
Speaker 3: Teach them about budgeting and cash flow. Honestly, I probably
30:57
Speaker 3: should make a teenager's version of my budget and cash
31:00
Speaker 3: program so that kids can go in and put in
31:02
Speaker 3: their pocket money and see what's coming. Actually, like genius,
31:05
Speaker 3: I'm going to do that. This is what I'm doing
31:07
Speaker 3: after this episode. Like you think I'm going to do
31:09
Speaker 3: work for the rest of today.
31:10
Speaker 2: You're wrong.
31:10
Speaker 3: I'm going to make a spreadsheet. But I think that
31:13
Speaker 3: there's been a few things that have been really constructive,
31:16
Speaker 3: and teaching kids about money is very different. But Maria
31:19
Speaker 3: from our group, she actually had a really good idea
31:22
Speaker 3: and her daughter got her first job at the age
31:24
Speaker 3: of fifteen, and she helped her transfer half of her
31:27
Speaker 3: earnings into a savings account that she didn't touch, while
31:30
Speaker 3: the other half they decided that she could just have
31:32
Speaker 3: fun with it. And now her daughter's actually seventeen and
31:35
Speaker 3: she's actually bought a car. She paid for her learners
31:38
Speaker 3: and her car lessons with that money, which I think
31:41
Speaker 3: is a really great idea. And I think that this
31:43
Speaker 3: is going to be different for everybody. And again personal opinion,
31:48
Speaker 3: because Georgia, this is my podcast. I can say what
31:50
Speaker 3: I want. I mean within reason and obviously with general
31:53
Speaker 3: financial advice like legislation, but I would really love to
31:57
Speaker 3: see people starting to do spend saving, investing, and donating
32:03
Speaker 3: for kids, So teaching them the importance of investing, but
32:07
Speaker 3: also teaching the importance of giving back, I think is
32:10
Speaker 3: something that is a really beautiful learning that can be
32:13
Speaker 3: taught from a really young age. And I'm very, very
32:16
Speaker 3: lucky in that that was something I was taught from
32:18
Speaker 3: a very young age. Like my mum, was always about
32:21
Speaker 3: giving back and how we could do more. And I
32:23
Speaker 3: think that that has now become ingrained in me. And
32:26
Speaker 3: I would say that that, you know, without putting too
32:28
Speaker 3: many tickets on it, that's quite evident now in the
32:31
Speaker 3: way that I function as a human. So I think
32:33
Speaker 3: that that was a really good idea for a Maria.
32:36
Speaker 3: But then I think it's also really important to not
32:38
Speaker 3: be controlling. So it's not your money. It is not
32:41
Speaker 3: your money to tell your child what to do with.
32:43
Speaker 3: I think that we are here to give them all
32:45
Speaker 3: the tools and resources and for them to then adapt
32:48
Speaker 3: that to what they might want to do, because at
32:51
Speaker 3: the end of the day, sometimes we just have to
32:52
Speaker 3: learn from our own mistakes. So letting your kids spend
32:56
Speaker 3: money their way while gently steering them in the right direction,
33:00
Speaker 3: providing them with all the tools and resources that they need.
33:03
Speaker 3: So hopefully by the time that they've reached the age
33:05
Speaker 3: where they're going to be fully equipped to make good decisions,
33:09
Speaker 3: they're able to make the right decisions. But if not,
33:12
Speaker 3: as I said before, making mistakes while they're young and
33:15
Speaker 3: they're actually supported financially by family is a really good
33:18
Speaker 3: way to learn lessons that they're going to take with
33:21
Speaker 3: them for the rest of their life. So I really
33:22
Speaker 3: wouldn't be stressing too much the end of the day.
33:25
Speaker 3: Like if your kid isn't putting money into savings and
33:28
Speaker 3: they're fourteen, like, that is not the end of the day,
33:31
Speaker 3: because I promise you at some point in the future
33:33
Speaker 3: they're going to go, I really.
33:34
Speaker 2: Want X, and you go, you can't afford it.
33:37
Speaker 3: You didn't save for it, that's not an option, and
33:39
Speaker 3: they'll go, oh, I wish i'd done that. So I
33:42
Speaker 3: think it's just sometimes you need to let people make
33:45
Speaker 3: their own mistakes. Even if you can see the right
33:49
Speaker 3: answer straight in front of you, it doesn't mean they
33:51
Speaker 3: have their clarity that you do.
33:53
Speaker 2: Yeah, it's kind of like a good time to be
33:55
Speaker 2: learning with that complete safety net if you're profession enough
33:58
Speaker 2: to have that safety.
33:59
Speaker 3: Net exactly, And like being short of money when you
34:02
Speaker 3: are sixteen and living at home, and the implication of
34:05
Speaker 3: that is that you can't go out with your friends
34:07
Speaker 3: on the weekend. Is very different being twenty three out
34:10
Speaker 3: in the world on your own renting and then finding
34:13
Speaker 3: you don't have enough money to pay rent or put
34:15
Speaker 3: food on the table. They're two very different things. And
34:17
Speaker 3: I know where I would prefer people to be making
34:20
Speaker 3: money mistakes.
34:21
Speaker 2: So how do we resist the urge then v to
34:23
Speaker 2: give our kids everything? Because you know, we want to
34:27
Speaker 2: set them up for this beautiful life. And if we're
34:30
Speaker 2: if we have the finance to buy them everything they want,
34:33
Speaker 2: what are the dangers in doing that? Why should we
34:35
Speaker 2: resist doing that?
34:37
Speaker 3: I think that this is, again, a really fickle conversation
34:40
Speaker 3: to have, because I've been incredibly lucky with the types
34:44
Speaker 3: of clients that I work with to have real diversity
34:47
Speaker 3: in the people I work with. So I've got clients
34:50
Speaker 3: who don't earn a lot, and I've got clients worth
34:52
Speaker 3: literally hundreds of millions of dollars, And I think that
34:55
Speaker 3: the one thing that they have in common, when they
34:58
Speaker 3: have kids that are really good at money, it's actually
35:01
Speaker 3: not about having handed them everything. You know, even if
35:05
Speaker 3: you're worth one hundred million dollars, that doesn't mean that
35:08
Speaker 3: you are spoilt. And I think that spoil is very
35:11
Speaker 3: different for different people, and I think it's more about
35:14
Speaker 3: expectation and you know, not understanding parameters and limits and rules,
35:20
Speaker 3: and I'm like, I'm very different when it comes to that.
35:23
Speaker 3: But the one thing that they all have in common
35:25
Speaker 3: is delayed gratification. They know that by sacrificing now, there's
35:29
Speaker 3: a bigger, better something hanging out in the future that
35:32
Speaker 3: they're going to be able to access. And at the
35:34
Speaker 3: end of the day, that's what wealth creation is. If
35:37
Speaker 3: we can actually teach ourselves delayed gratification and understand what
35:41
Speaker 3: that means, and that means giving up a smaller something
35:44
Speaker 3: now so that we can have a bigger, better something
35:46
Speaker 3: in the future, I think that we can all be
35:49
Speaker 3: better off. So when it comes to kids and wealth
35:52
Speaker 3: and giving them what you want, I don't think it's
35:54
Speaker 3: necessarily about going, no, well, we don't buy that for
35:57
Speaker 3: our kids, Like, it's not actually about that. What it's
36:01
Speaker 3: about is actually just being balanced and having good money
36:04
Speaker 3: conversations and teaching them the value of a dollar so
36:08
Speaker 3: that when you do buy them their first car, if
36:10
Speaker 3: that's what you're going to do, and that maybe that's
36:12
Speaker 3: a gift, they comprehend that that's a really generous gift
36:15
Speaker 3: and they understand that that's really impactful instead of expecting it.
36:20
Speaker 3: So I think that there's you know, there's different ways
36:22
Speaker 3: of doing it, and you know, not everybody's gifted a
36:25
Speaker 3: car when they start to grow up. It's actually not
36:28
Speaker 3: normal at all. And I remember growing up and you
36:31
Speaker 3: grew up in the same location as me, Georgia, and
36:34
Speaker 3: there was a very big difference between the kids that
36:37
Speaker 3: I went to school with. For example, like I went
36:39
Speaker 3: to school with kids who got gifted BMW's for Christmas,
36:42
Speaker 3: and I also went to school with kids whose families
36:45
Speaker 3: couldn't afford to put dinner on the table every single night.
36:49
Speaker 3: So I think that there's no right or wrong way.
36:52
Speaker 3: It's actually just about teaching people how to earn things
36:55
Speaker 3: for themselves and what gratification means and the value of
36:59
Speaker 3: a dollar. Because if you can teach all of that
37:02
Speaker 3: when it comes to expecting things, I almost almost guarantee
37:07
Speaker 3: that the kids that understand those things, regardless of how
37:11
Speaker 3: quote spoiled or looked after they are, they're going to
37:14
Speaker 3: appreciate those things more than the kids that just expected
37:17
Speaker 3: that that was going to happen.
37:20
Speaker 2: All right. To finish off today, V, I thought it
37:23
Speaker 2: would be nice to integrate the community into the chat.
37:26
Speaker 3: Yes.
37:27
Speaker 2: I actually reached out to them last week V to
37:30
Speaker 2: ask how they teach their kids about money, and they
37:32
Speaker 2: had so many good ideas, so I thought we'd just
37:34
Speaker 2: run through I'm about faith. Thank you to everyone as
37:38
Speaker 2: well who replied it was great to see so many
37:40
Speaker 2: amazing ideas. So the first one was from Tony. Yes,
37:44
Speaker 2: tell me all about it. So every Monday they have
37:47
Speaker 2: their Monday money meal. Well, they sit down as a
37:50
Speaker 2: family hand out their pocket money for their weekly jobs
37:53
Speaker 2: and their overtime jobs.
37:56
Speaker 1: Good time.
37:57
Speaker 2: That's a good idea, cute. So they then distribute this
38:01
Speaker 2: money however they want into their savings and their spending,
38:04
Speaker 2: so the kids have that autonomy there. Then they discuss
38:08
Speaker 2: lots of things in regards to money, like their savings goals,
38:10
Speaker 2: how extra hard work gets extra money, as well as
38:13
Speaker 2: some life lessons thrown in their love that their number
38:16
Speaker 2: one rule is to never get a credit card, which
38:18
Speaker 2: we love. And after eight weeks of money meals, they
38:21
Speaker 2: both had saved enough money to get what was on
38:23
Speaker 2: their big goal list, which was brand new bikes. So
38:26
Speaker 2: that's a very wholesome idea.
38:28
Speaker 3: They were a lot of overtime. Those kids were working hard.
38:33
Speaker 3: But how cute is that? And I really like that.
38:35
Speaker 3: That's something super simple that I think, regardless of what
38:38
Speaker 3: our income is, we could all do. Like we can
38:40
Speaker 3: all sit down and have a meal together. It doesn't
38:43
Speaker 3: matter what that meal is and talk about money, and
38:45
Speaker 3: I mean Monday money meal. That's pretty catchy.
38:48
Speaker 2: I like it.
38:49
Speaker 3: Tony's a genius.
38:50
Speaker 2: Yeah, sell that to someone.
38:52
Speaker 3: What else have we got, Georgia King?
38:54
Speaker 2: Okay, So the next one was from Samantha. So this
38:57
Speaker 2: was from her experience as a child. So she said,
39:00
Speaker 2: as kids, we had a pocket money book each and
39:02
Speaker 2: if we wanted to save our pocket money each week,
39:04
Speaker 2: we would get something like a one dollar bonus for
39:06
Speaker 2: that week we were investing precisely, so it was all
39:10
Speaker 2: on paper. They'd have to ask mom and dad to
39:12
Speaker 2: cash it out if they wanted to buy something, and
39:15
Speaker 2: it really it made them think more about their spending
39:18
Speaker 2: as they didn't have cash just laying around, and then
39:21
Speaker 2: there was the benefit of increasing their balance faster. By
39:24
Speaker 2: waiting a little bit longer to make that purchase delayed gratifications.
39:29
Speaker 3: I love that, And that's a really good investment return
39:32
Speaker 3: because they guarantee you, like she wouldn't have been getting
39:35
Speaker 3: paid one hundred dollars a week. A one dollar return
39:37
Speaker 3: on a hundred bucks is good, but imagine that probably
39:40
Speaker 3: like five.
39:41
Speaker 2: Bucks a dollar return.
39:42
Speaker 3: I will wait. That's great, thank you.
39:46
Speaker 2: The next one here was from Larissa. Bit cheeky that
39:48
Speaker 2: I threw this one in, but she said having the
39:50
Speaker 2: Shoes on the Money podcast on the car radio when
39:52
Speaker 2: they're in the cars messaging. I love that.
39:56
Speaker 3: I love that. Get at Larissa.
39:59
Speaker 2: Next one is from Jamie. So she said they would
40:02
Speaker 2: get loans from mom for the things they wanted to buy,
40:05
Speaker 2: and then they'd have to pay her back. If they
40:07
Speaker 2: were too far behind on their agreed repayments, then they'd
40:10
Speaker 2: have to start missing out on the extra things like
40:12
Speaker 2: going to see their friends or getting ice cream when
40:14
Speaker 2: they were out. Really taught them the importance of repaying loans.
40:18
Speaker 2: So that's a different Strategy's like cute.
40:21
Speaker 3: I like that, and I know that I don't like
40:24
Speaker 3: debt by any stretch of the imagination, but I think
40:27
Speaker 3: that that's a really good lesson to learn early. Like
40:30
Speaker 3: it's not something that I would want to promote all
40:33
Speaker 3: the time because obviously I'd much prefer a child to
40:35
Speaker 3: save for something that they really want, because that really
40:38
Speaker 3: goes back to that delayed gratification and actually make sure
40:41
Speaker 3: that they really want it. And Georgia, can you remember
40:44
Speaker 3: when you were really little, it was like the anticipation
40:47
Speaker 3: of Christmas, like you knew were coming. Like that's what
40:50
Speaker 3: saving often feels like to children, because you're like, all right,
40:53
Speaker 3: you want the bike, Like we can work towards it,
40:55
Speaker 3: like it's x amount per week, and like you can
40:58
Speaker 3: actually make saving really excited, like putting goal sheets on
41:01
Speaker 3: the fridge for their savings goals and like they get
41:04
Speaker 3: to coloring a square each time they get it. And
41:07
Speaker 3: back to the cash thing. You don't necessarily have to
41:10
Speaker 3: pay them that cash. You could have a little checkbook
41:13
Speaker 3: that you make. And this is actually inspiring the hell
41:16
Speaker 3: out of me, Georgia, to make a whole heap of
41:18
Speaker 3: resources for our community. Like imagine you know how we
41:21
Speaker 3: have our little savings hacks for She's on the money
41:24
Speaker 3: that our community members put on their fringe. Imagine if
41:27
Speaker 3: there was kids once.
41:28
Speaker 2: That's a great idea.
41:30
Speaker 3: I'm going to do it.
41:31
Speaker 2: I'm sorry, confident.
41:32
Speaker 3: What else did the community have to say?
41:34
Speaker 2: Okay, so the last one is from Christie. So her
41:37
Speaker 2: six year old really wanted a skateboard.
41:39
Speaker 3: That's terrified.
41:40
Speaker 2: Can you imagine six year old on a skateboard. I
41:45
Speaker 2: really don't know. I feel like from ages three to
41:47
Speaker 2: eleven they're like the same to me.
41:48
Speaker 3: Yeah, I have no same same.
41:51
Speaker 2: Sorry, Christy, show off.
41:52
Speaker 3: The fact that we don't have children here.
41:54
Speaker 2: So yeah, So Christie's six year old wanted a skateboard.
41:59
Speaker 2: Then they worked out some weekly jobs that he could
42:01
Speaker 2: do so that he would get some pay at the
42:03
Speaker 2: end of the week and he would have to do
42:05
Speaker 2: those tasks without being asked, and she said he was dedicated,
42:09
Speaker 2: so cute. When he got to his goal, he then
42:13
Speaker 2: decided to wait for another week so he didn't leave
42:15
Speaker 2: himself with an empty wallet.
42:17
Speaker 3: So he was learning the importance of an emergency fund early.
42:23
Speaker 2: What a genius is.
42:25
Speaker 3: Coming for my job, Christy?
42:27
Speaker 2: Exactly, your child watch back off. When he did go
42:32
Speaker 2: to buy the skateboard, it was more than they thought.
42:34
Speaker 2: So now he's paying off a little debt to mum.
42:37
Speaker 2: So great experience. Yeah, so many good ideas in there
42:41
Speaker 2: as well. We obviously can't get to all of them,
42:44
Speaker 2: but do head to the Facebook group guys and have
42:46
Speaker 2: a little flick through them. I don't know what you
42:49
Speaker 2: used to search search teaching kids about money and it'll
42:52
Speaker 2: pop up, but yeah, really great ideas in there, So
42:54
Speaker 2: thank you to everyone who contributed.
42:56
Speaker 3: Yeah, absolutely.
42:59
Speaker 2: Before we head off today, any resources for our listeners
43:04
Speaker 2: to refer to to back up this chat?
43:06
Speaker 3: Absolutely? And you all saw this one coming, are you ready?
43:09
Speaker 3: It's the Money Smart website, our favorite, the Money Smart
43:13
Speaker 3: website this time really pulled through with the goods guys.
43:16
Speaker 2: They have a.
43:17
Speaker 3: Breakdown of different activities that you can complete with your
43:19
Speaker 3: kids based on their ages to help them learn about
43:22
Speaker 3: their money. So we'll link that in the show notes
43:24
Speaker 3: so that you don't miss out on that one. And
43:26
Speaker 3: then there are also board games like Pocket Money, which
43:29
Speaker 3: Kiglie from our community recommended was great. Monopoly is also
43:32
Speaker 3: another course of action if you want to teach them
43:34
Speaker 3: about money, but again, if you don't want to have
43:37
Speaker 3: family fights, maybe avoid that one because that's how that
43:40
Speaker 3: game ended in our family each and every single time.
43:44
Speaker 3: And Fee from our group actually shared a link last
43:47
Speaker 3: year to a resource from the Smith family which is
43:50
Speaker 3: great for younger kids, so we'll also link that in
43:52
Speaker 3: our show notes. And yeah, I think that there are
43:55
Speaker 3: some really fun resources there. In fact, I'm probably going
43:58
Speaker 3: to post on the day that we drop this a
44:00
Speaker 3: thread to asking people more questions about pocket money and
44:03
Speaker 3: how they learn about pocket money and money growing up,
44:06
Speaker 3: because I just think it's such an interesting topic to
44:09
Speaker 3: see how you grew up with money but how you
44:12
Speaker 3: are with it now, Like that's super pervy. So unfortunately Georgia.
44:17
Speaker 3: With that, I think we're done for today and that
44:20
Speaker 3: is who we are. Yeah, that is all we have
44:22
Speaker 3: time for. So as always, just before we head off,
44:26
Speaker 3: we'd like to acknowledge and pay respect to Australia's Aboriginal
44:30
Speaker 3: and Torres Strait Islander people's. They're the traditional custodians of
44:34
Speaker 3: the land, the waterways and the skies all across Australia.
44:38
Speaker 3: We thank you for sharing and for caring for the
44:40
Speaker 3: land on which we are able to learn. We pay
44:43
Speaker 3: respects to elders past and present, and we share our
44:46
Speaker 3: friendship and our kindness.
44:48
Speaker 2: And remember everyone that the advice shared on she is
44:51
Speaker 2: on the money, is general in nature and does not
44:53
Speaker 2: consider your individual circumstances. She's on the money exists purely
44:57
Speaker 2: for educational purposes and should not be really light upon
45:00
Speaker 2: to make an investment or a financial decision, and we promise.
45:04
Speaker 2: Victoria Devine is an authorized representative of Australia Pacific Funds
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Speaker 2: Management Proprietary Limited a BN three four one three two
45:12
Speaker 2: four six three two five seven AFSL three three nine
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Speaker 2: one five one Not good.
45:18
Speaker 3: Alright, see you guys next week.
45:20
Speaker 2: Bye guys,