What do you wish you'd known about money when you were young?

richardvc

Let them know that not all credit is bad - but it's how you manage it that is important.

Secondly, that companies are trying to screw them for everything and are in it for their benefit and not the consumer's !

strictwithmoney

"Learning to be thankful with what they got"

Recently, my friend's 13-yr old son demanded to have the latest mobile phone like his friends and also complained that his birthday party was not good enough.

It pains me to see kids behaving like that.

nolongerindenial

My latest motto in life...... which they may relate to

No matter how hard you work to get money, someone is working three times as hard to get it from you

Spirit_2

Now that shopping is a leisure activity and technology makes gadgets into consumables can you link a discussion about spending with self esteem/confidence? Alternatives to spending 'the most' - savvy shopping.

The difference between conspicuous consumption and wealth. Outwardly they may think it looks good but it is an act/false/unaffordable....and frequently embarrasingly obvious.

purplepurple

Thanks again for the replies so far... I gave a copy of the teen cash guide today to the other people who are teaching money management to the year 9's...they all thinks it's fantastic too... so it looks like there'll be about 200 kids that will benefit from Martins wise words from the guide and your wise words from this thread.:D

foxgloves

I wish I'd believed my Mum when she constantly told me 'You can't spend what you haven't got'. We frequently had this conversation when I was a student 20 years ago. I used to say things like 'Of course I can, I've still got some cheques left' and thought she was a bit of a boring old fogey with money......which is why she has virtually never bought anything on credit in her life and why I was in debt for 20 years!! One of my firm sayings to myself when I want something is that if I've got to put it on overdraft or credit, then I obviously can't afford it because that's somebody else's money. It isn't mine. If I can't afford to buy it outright, then I certainly can't afford to buy it on credit because that way, I'm actually going to end up paying MORE for it. The other thing I wished I'd done years ago is set up a little regular saving into a rainy day fund. I didn't bother as I alsways had debts to pay off & thought I wouldn't be able to save enough to make it worthwhile. I started this a year ago, just a modest monthly standing order into an NS&I account. It's surprising how it mounts up. For the first time ever, if I had a big bad car repair bill, I'd be able to pay for it & that feels good. So that's two things I wish I'd known/done earlier.

angelflower_2

good thread. I think anything they can do practically to cement the lessons is the only way that any message will stick.

Why not create the lesson around something like 'how to refurb your bedroom'.

Get them to write a wish list - GOALS

Get them to add up how much they will need then investigate different ways of how they might go about getting the money for it - ie credit from different sources, loan from family/friends, saving, working. Incorporate here some of the MASSIVE APR companies that are out there such as places like provident and bright house which might be the first forms of credit they come accross due to lack of credit history. PLAN (might be helpful to get them to fill in things like budgeting sheets or credit applications)

Ask them how their goal may shift depending on the availability to the amount of income they may need (really that big a TV?) REVIEW

Its my understanding if they can make it relevant to their lives now, then the information will stick better. Good luck!!

purplepurple

Great suggestion angelflower, I definitely think they'll get more out of it if it's relevant to them now...thanks again to everyone for your replies

Nukumai

I'm a Chartered Accountant by training and have spent 20-some years as (variously) a trader and risk manager in investment banking and commercial banking. Based on my own experience, and without hesitation, I'd recommend that you start with the magic of compounding and build on that (savings, debt, mortgages etc.)

An introduction to money (inflation/deflation, central bank role) would also be interesting. As would money-management (budgeting etc).

Sounds interesting - good luck!

DiamondSpender

I fell into the trap of looking at my friends and thinking that because they had a purse full of credit and debit cards, loans for cars and computers and they still managed to look nice and do what they want, I thought I could do the same.
I lived off credit and overdraft and personal loan after personal loan, all because my friend did. She managed to hide her debt, or maybe she wasn't bothered about it, but once you are in the spiral you can't get out of it. Then you bury your head in the sand and it takes ages to realise the problems and a great deal of courage to ask for help.
I would hate anyone else to take the journey I have taken and if young adults can have this drilled into them now I think they'll be much better informed than I was.