Financial Education

stephenadarglas

Personally, I think it's the parents responsibility to have some influence on financial matters with their children however they would need some 'skills' themselves for this to happen successfully.

michaels

stephenadarglas said:

Personally, I think it's the parents responsibility to have some influence on financial matters with their children however they would need some 'skills' themselves for this to happen successfully.

You would think so but in our household whilst the parents understand and communicate the value of money and avoid all unnecessary expenditure out of necessity the kids take their pocket money and blow it on starbucks etc

Retireinten

michaels said:

stephenadarglas said:

Personally, I think it's the parents responsibility to have some influence on financial matters with their children however they would need some 'skills' themselves for this to happen successfully.

You would think so but in our household whilst the parents understand and communicate the value of money and avoid all unnecessary expenditure out of necessity the kids take their pocket money and blow it on starbucks etc

I would say my parents did teach me but not intentionally. I saw the constant worry that not having money caused them when I was a teenager, which has driven me to strive for financial security and now independence.  But I could have gone the other way, felt deprived as a child and blew everything I earned to make up for it.


We should be in a position to help our kids set up their adult lives, with help towards a car and a house deposit etc. I'd like to think we will be able to treat them to the odd holiday and meal out and have the flexibility to help with childcare too. But I do worry that their more 'privileged upbringing' in comparison to mine at least (to give this post some context we're both basic rate tax payers) will mean they are spenders as opposed to savers. So they will get our help only if they're helping themselves by working, studying and saving part of their salary. We work really hard and I would hate to see it wasted. 

MaxiRobriguez

Can't rely on parents to teach - some just aren't cut out to do it, some even aren't there to do it.

I don't think I had one lesson at all growing up about how to manage my own affairs, but I still remember how to explain the contents of my pencil case in French.

kuratowski

The teachers may not be very confident, either!  My OH is a teacher (English) and is told to deliver some PSHE lessons, including personal finance, and I know for a fact he can't calculate percentages...

stephenadarglas

kuratowski said:

The teachers may not be very confident, either!  My OH is a teacher (English) and is told to deliver some PSHE lessons, including personal finance, and I know for a fact he can't calculate percentages...

Cheap shot kuratowski 😂

MallyGirl

Retireinten said:

I would say my parents did teach me but not intentionally. I saw the constant worry that not having money caused them when I was a teenager, which has driven me to strive for financial security and now independence.  But I could have gone the other way, felt deprived as a child and blew everything I earned to make up for it.

My brother and I took the different ways after an upbringing where every penny was watched. I was, and still am, a control freak - monitoring and tracking everything, in the early days I paid everything by standing order as I didn't trust the unknown amount associated with direct debits. I bought my first flat at 24 after uni and a few years working. I am looking to retire on a decent income at 58. My brother just spends, always has, presents are big, savings are nil. He finally got his own place at 27/28 because Mum sold her house and moved in with her OH and he couldn't go with her! He didn't go to uni so had been working for 10 years by then. He had no pension until the recent auto enrolment forced one - he jokes to Mum that his share of her house is his pension. It is not a very funny joke.

It is up to parents to try and pass on what they have learned about life skills/finance/all sorts. Schools just don't have the capacity. Hopefully our kids will talk with their friends and the less lucky ones (in that their parents couldn't or wouldn't teach this stuff) might learn something that way.

NedS

michaels said:

stephenadarglas said:

Personally, I think it's the parents responsibility to have some influence on financial matters with their children however they would need some 'skills' themselves for this to happen successfully.

You would think so but in our household whilst the parents understand and communicate the value of money and avoid all unnecessary expenditure out of necessity the kids take their pocket money and blow it on starbucks etc

I was brought up by my parents (both through teaching it and living it) that if you can't afford to buy it, you can't have it. I have tried to instill that ethos in my own children, but it's extremely difficult when the concept of have now, pay later and everything being available on credit is so prevalent. Who saves up and buys an iPhone when they can have it now on a pay monthly contract. Who saves up and buys a new BMW or Audi when they can have it now for £400/month on a lease. The only debt I have ever incurred in my life is a mortgage which was cleared as a priority. My children are not interested in saving up for anything and live day to day, spending it as soon as they have it.

The Covid pandemic has really laid the risks bare, with many people losing their jobs which they thought were secure and are over leveraged with monthly repayments for phone contracts, cars etc which they are committed to, and have found it very difficult to reduce their costs (or cut their cloth) to fit their new circumstances. Yet more debt is the end result.

p00hsticks

kuratowski said:

The teachers may not be very confident, either!  My OH is a teacher (English) and is told to deliver some PSHE lessons, including personal finance, and I know for a fact he can't calculate percentages...

Yes, you only need to be a regular visitor to these boards to see how many in the teaching profession and other public sector jobs have no understanding or appreciation of the pension schemes available to them, so I'm not sure I would necessarily trust them to educate anyone else on the subject

kuratowski

p00hsticks said:

Yes, you only need to be a regular visitor to these boards to see how many in the teaching profession and other public sector jobs have no understanding or appreciation of the pension schemes available to them, so I'm not sure I would necessarily trust them to educate anyone else on the subject

100%.  And furthermore I find it extremely frustrating that PSHE is treated in such a mickey mouse way, teaching such important life skills by non-specialists equipped with nothing more than a powerpoint deck - a classic case of willing the ends without the means.  End of rant.