How to advise teenage son?

mgdavid

kidmugsy wrote: »

...... I'm suggesting the "Go outdoors and do something, sonny" option. Do them while you are lithe.

I wholeheartedly second that - surely it's good to also learn how to spend money and enjoy life occasionally!

"We have our kids basic needs covered until they enter adult life, whenever that may be. So I don't think our kids have any need to spend what they have earned."
Is there a danger of him becoming too reliant on 'the bank of mum and dad' and having a surprise or two later on?

organic_wanabe

My advice would be to answer him truthfully and show by example. I have never had any hesitation in sharing my thoughts on finance with my son - i.e. never spend more than you earn; work hard but remember to enjoy life. Anyway, I find that he listened/listens to me only when it suits him. He is now 22 and working in finance in London after studying Economics at University. I am sure many would say he has had an easy life. However, we did make him go out and find a newspaper delivery job when he was 14 which he did for many years (6 mornings a week in all weathers) as we were not funding his social life even although we could afford to. During the Summer when he left school we said we would support him well during University provided he went out and got a job (in Costa coffee) for the Summer. Most of his peers told their parents they could not find a job. Costa took my son back each vacation and he learned that people with degrees were working there because they had been unable to find jobs in their subject areas and that it was hard work. Now, at 22 he is living a great life in central London (without wasting too much money but still managing to have a fantastic social life) with a substantial savings pot and a fair amount in his pension. I'm sure at some point in the future he will thank me for the benefit of my wisdom ...... however that may take another decade or so!

Well done to your son for saving so much. I would suggest to him that he researches some Investment Trusts (http://www.bailliegifford.com/documentgateway.aspx?_id=3A39B056-DE6E-474E-870C-3DB1B9BB88F3&disclaimer=ok).

racing_blue

Thanks all for the advice, that is food for thought. He hasn't mentioned it again today so I think I'm going to do the minimum at the moment. If pushed I will answer truthfully as per Organic Wanabe but perhaps part of that truth will be admitting that there are many ways to skin the rabbit and what has worked for me may or may not work for him / and vice versa.

My motivation is not that he become wealthy- just that he understands the issues which will confront him in adult life, in particular labour versus capital because I have come to believe that understanding that one is key to taking control of your finances.

As I think about this and other issues, I find that so many of the expectations I have for my kids stem from my own childhood experiences. And although the world has moved on, maybe there are some simple messages that transcend time - I just read "The richest man in Babylon" which makes that point quite well... maybe I could leave a copy of that lying around along with Warren Buffet "The Snowball" and Rich Dad Poor Dad (joke)

Have a good evening

organic_wanabe

racing blue, I thought of you when I read this from Monevator!

http://www.cleareyesinvesting.com/2015/01/some-investing-advice-for-my-son.html

haycorns

santander do a mini 1-2-3 for under 18's which pays 3%