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"12% savings, 100% interest debts, that'll teach 'em" blog discussion
edited 3 February 2011 at 1:20PM
in Martin's blogs & appearances & MoneySavingExpert in the news
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This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.
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Something else would be the skills on how to use the pivot tables through which I track my daily expenses against my income and monthly assigned budget over time...
I think after the concept of interest rate, savings and debt, the following ones will be self-financed "loan" and amortization (i.e. when I have to buy something that costs a lot, such as a car or a new laptop, not necessarily "expensive", and I "loan myself" the money from my savings "(nearly, because I should the opportunity cost of putting them in a saving account)-interest free" but assigning a fixed monthly payment over a predetermined period of time, such as 3 years or few months).
I hope she won't hate me too much....
A.
I wish! He won't actually borrow money from me! He saves instead because he said he'd rather buy two then give me free money!
You raise a good point, which i have thought about... I am planning lower the rate of both in line with current markets as he grows up.
But, the most important point is that by the time he is 18 he shouldn't need to borrow.
Plus I don't impose high rates and not discuss with him about good debts and bad debts and money management. As Martin has said, it's about education.... and I believe in Educating my son about money!
At 8 he needs more outrageous figures to just start to understand the concept of money!
Would he save money if he got 2 or 3%?
Would be borrow money I don't have and make sensible choices if he doesn't have to think about the conseqences first???
Also if he continues to save well does he realise that he is only allowed to earn £100pa on money received from parents before he has to pay tax?
Fab idea - would like to use something similar with my 10yr old, though it might mean I have to actually pay up more :cool: