"12% savings, 100% interest debts, that'll teach 'em" blog discussion

JulieGeorgiana

trynsave wrote: »

Does he get 12% monthly or is that the annual figure?

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:

12% is his APR, so he gets 1% a month, which is only 10p for every £10! (He has £60 in the bank)

He did himself a little table in his diary (yes I know!) where he keeps track of how much I owe him!!!

LOL I am not charging Tax on Interest (Yet!) we have discussed tax, but he doesn't get why the government tax the wages, and then tax the goods!

Thanks

I set aside £10 a month every pay day... his pocket money is on a sliding scale (he get's £2 a week for tidying his room, but I minus 20p for each thing which isn't tidy!) and if he does extra chores he can earn money....!

Pay day for him is Wednesday!

He is normal though... because he NEVER earns all £10 over the month :cool:

jazzazap

Brilliant idea. Hope more parents do the same.

Voyager2002

My son learnt quite a bit about money from playing 'Railroad Tycoon'.

Mr_Forgetful

I love this.

After years of forking out money on cheap toys or a comic for a fiver I have been trying to teach my 6 year old daughter the concept of saving for something bigger and better. She has joined an after school club recently where they get rewarded with stickers and they can trade a number of stickers for a reward from the cupboard. They get up to 3 stickers at a time and my little one is saving for the biggest toy that is 125 stickers! I think she has finally got the idea of saving.

I am going to do your pocket money idea now.

TDQO

This is a fantastic idea, great bit of parenting!

JulieGeorgiana

TDQO wrote: »

This is a fantastic idea, great bit of parenting!

Thank You

My son loves this thread... he thinks he's famous! He's trying to earn more money to save now... I will be poor soon :cool:

de1amo

my wife and i run seperate financial lives and i wish i could get a formula to disuade her from treating me as the bank of hubby= i have just bought her a car and told her she must pay me back half of the car and she seems positive but i know in 6 months she will have convieniently forgotten the debt and moved onto some other ~must have~the car loan is interest free which is bad business i know! What rate shall i come up with if she fails on any payment- she never saves despite earning as much as me and i run the household bills-

Errata

Your son is famous ! I suggest he is due a prize commensurate with his age. A moneysaving book signed by Martin Lewis with a suitable message would be very appropriate.

JulieGeorgiana

de1amo wrote: »

my wife and i run seperate financial lives and i wish i could get a formula to disuade her from treating me as the bank of hubby= i have just bought her a car and told her she must pay me back half of the car and she seems positive but i know in 6 months she will have convieniently forgotten the debt and moved onto some other ~must have~the car loan is interest free which is bad business i know! What rate shall i come up with if she fails on any payment- she never saves despite earning as much as me and i run the household bills-

This is a toughie... I look after all our family income. I would have bought a £2k car I could afford without a loan. As I am one to wait until I have the money before I buy (well I am now). Even my car was bought at 10 months old because it was 30% cheaper then new.

TBH my Husband sounds like your wife, this is why I look after the finances now

I don't think charging interest will make her pay up any better the 0%! I think the best thing is not to buy something usless you have the money first, then go 50/50!

JulieGeorgiana

Errata wrote: »

Your son is famous ! I suggest he is due a prize commensurate with his age. A moneysaving book signed by Martin Lewis with a suitable message would be very appropriate.

:T Do you know... I think he would love that too :T