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

Pollycat

I think an important piece of advice is:
Don't try to keep up with your friends financially - unless you can afford it.

If you're working on minimum wage and your best friend has a good job in say, IT, it can be hard seeing them buying 'stuff' but it's easy to start putting expensive gadgets and clothes on credit.
DON'T!

immoral_angeluk

It is a Banks job to make money out of you and regardless of what they say, they will only be working in their interests.

immoral_angeluk

Don't lend money to friends and family if you can't afford to lose it.

ILW

I wish you luck, but think you may be onto a loser with many. Telling an 18 year old they can save up for a year or two to buy the shiny new car or just sign here and you can have it by the end of the week, is not much of a contest.
Schoolkids have it drummed into them on a daily basis that some drugs are not good for you, but is doesn't stop them until they find out for themselves.

Mischa

When I was 12 or 13 years old my dad gave my sister and I £50 each to spend on whatever we wanted. It was a test, although I didn't realise that at the time! My sister and I headed into town to see what we could get, naturally, I went straight to the clothes shops! I remember seeing a jacket for £35 and getting it without thinking, and then realising I had very little left over to buy anything else. It was in that moment it hit me, money (unfortunately!) doesn't grow on trees, and that it really doesn't last very long if you don't use it wisely! A few years later (when I was a bit older, and hopefully wiser!) I asked why he did it, as it could have really backfired and we could have just spent it and learnt nothing, but he said to me, it was a risk, but i believed you would work it out, and you did! It sounds silly now, but we didn't get pocket money when I was a child, and we never really had much money, so it would have been very easy to just blow because it was such a treat, but it made me understand money a little bit more, which is hard at that age.

Ames

One thing to be careful of is to think of the kids backgrounds. I had one lesson on finances when I was at school, it was the headteacher showing us how to write a cheque and saying that shares are great and we should invest. To a class full of kids from a council estate the idea of shares is so far out of their experience that it was meaningless. Similarly, kids from a background where everything can be afforded and paid for outright might struggle with the concept of debt.

purplepurple

Ames wrote: »

One thing to be careful of is to think of the kids backgrounds. I had one lesson on finances when I was at school, it was the headteacher showing us how to write a cheque and saying that shares are great and we should invest. To a class full of kids from a council estate the idea of shares is so far out of their experience that it was meaningless. Similarly, kids from a background where everything can be afforded and paid for outright might struggle with the concept of debt.

You're right - my school is in a very deprived area so many of our kids are from families where no one works for one reason or another or where money is incredibly tight. Their families are extremely supportive on the whole, but many of the kids express a real desire to have a different life when they are adults.

That's sort of why I want to get it right so much, because I know that our kids have many different experiences of money management.

Thanks again for the replies.

elfen

Things cost more than you think. Ask them if they know how much the rent (even if paid by LHA is) or ask them how much they would need to live on a month (including bills and food) and they might be surprised.

I know it might not go down well, but if they know of anyone whose been in debt and had things happen (like bailiffs or court) so they know the consequences of their actions.

yellowduck_2

Purplepurple you are a star, wish we'd had teachers like you in my day. Let us know how it all goes.

dianah

i second the 'plan' bit. not just in relation to credit but once they don't live with their parents anymore, they'll need to buy their own food for example. if they go 'unprepared', they'll buy a lot more than they need. people view food - because it's a necessity - as something they HAVE to buy so it's money you have to spend and while this is true, you can choose how much food you buy.
i must say i've just figured that out myself (i'm 27) - we do buy a lot of food and chuck quite a lot too - i went to tesco today and was looking at things that i wanted to buy, e.g. grapefruits and ended up not buying them because i still have a bag of apples at home that i don't want to throw out!