'Three money lessons I'll teach my daughter' blog discussion

Former_MSE_Helen

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Read Martin's "Three money lessons I'll teach my daughter" Blog.

Please click 'post reply' to discuss below.

Rafter

'A loan or credit card limit is not your money' You have to pay the money back with interest.

'Using a credit card or loan to buy food, clothing, entertainment, holidays or weddings is a really bad idea.' You should only borrow money to buy something with long term value or that will save you money in other ways - for example a house or a car.

R.

jamesd

Using a credit card to buy food, clothing, entertainment, holidays and weddings is a really good idea. As it is for almost anything else unless there are card-specific extra fees.

Just choose the right card, with cashback or nice long free interest periods, and make money by saving the money until the end of the deal. And you get Consumer Credit Act protection for your purchases. Even with no deal you get that protection and usually some interest-free period where your money can work for you for a month or two.

It's not really a use or not use is good or bad decision but a case of understanding what you are doing and picking the most beneficial option. That can often be borrowing. So a more general rule here might be to ensure that you understand the pros and cons of the products you use, and use each in the most beneficial way.

What is much more likely to be bad is just borrowing and spending without putting aside money to repay or even budgeting for how to do that. Or use of credit by someone who just can't handle it properly can be a really bad idea and such people may well be better off not using unsecured credit.

meher

even if it is a school curriculum i wouldn't underestimate games for children/teenagers - it should be cleverly designed and devised for childnre to realise the difference between good and bad debt and also to be managers, otherwise it would be just another maths lesson

may be we should have downloadable games relating to money, on this site - management as a theme would be ideal

i used to play banker in american monopoly with cowry shells when we were very young, needless to add i used to be filthy rich

bargainbetty

I would teach any child how to budget, how to run a house (including cooking and cleaning) and that credit isn't free.

Jo4

How does this work as I thought it should have been £1.10 rather than £2

"Blood Donor: "If you get £1 a week and spend it all on sweets it’s gone. Spend 90p a week on sweets and you’ll have £2 in 11 weeks.""?

Percy1983

My biggest advise to any child these days would be "not everybody wins the x factor".

real1314

Jo4 wrote: »

How does this work as I thought it should have been £1.10 rather than £2

"Blood Donor: "If you get £1 a week and spend it all on sweets it’s gone. Spend 90p a week on sweets and you’ll have £2 in 11 weeks.""?

After week 10 you'll have "saved" £1, and then at week 11 you get another £1, giving you £2 in total, before you spend any of your weekly allowance.

Jo4

real1314 wrote: »

After week 10 you'll have "saved" £1, and then at week 11 you get another £1, giving you £2 in total, before you spend any of your weekly allowance.

Thanks for explaining, :beer: pity they hadn't typed it the way you have!

lucys_mum

As a parent of 3 (now 24/41/43) they were allowed odd treats/sweets etc BUT their actual pocket money was entered into a notebook each week that was available to them at all times.They could always see the running total and could 'draw out' at any time. Whenever a 'withdrawal' was requested we simply asked were they sure they wanted it more than the increasing balance and paid out on their decision. Didn't always work.. but they could always see their mistakes when the unwanted purchase was deducted. All 3 have sound bank balances and two have their own busineses - they're also quite mad but I couldn't prevent that!!!

Poppy9

Three lessons:

1. Don't spend what you don't have. CC does not count as having
2. Neither a borrower nor a lender be; For loan oft loses both itself and friend, And borrowing dulls the edge of husbandry
3. That Mummy & Daddy have to work for their money and it pays for the house you live in.