Do you teach your kids about pensions?

dharm999

Have managed to get my son interested in savings and pensions, articles on Monevator were very helpful.  He is halfway through his law training contract and expects to double his salary next year when he qualifies and hopefully he will then significantly increase his savings into pensions and ISAs.  I think he now gets the whole save now, get the benefits of compounding,  I just wish my parents had said something to me when I was his age.  I stumbled on to it only 10 years ago, if only I had taken more interest 10 years earlier, i probably would have had the option to stop full time work.  That’s not a regret my son will have, at least he will know, what he chooses to do is then up to him

Brie

No  - but only because I don't have kids.  But I have promoted the idea of pensions to my young colleagues pointing out that work pensions in particular are easy and because the money doesn't actually go into their bank account it's a painless way to put aside money for the future.

I do believe that financial planning should be taught in schools.  I did ask for this when I was in high school - long ago and far away.  Unfortunately it wasn't possible as it was only the boys that received financial planning lessons while the girls were taught baby care.  Thankfully they wouldn't be able to get away with that these days (i hope).  

I was fortunate that my mother was (marginally still is) financially astute and promoted savings and investments to us.  I still think about some of the things she taught us young.  Like be careful of really good deals and check you know who they actually are good for. (aka the person selling!)  And whenever you're thinking of spending a lot on something/anything (house/car/holiday) stop and think about it over night.  You might decide in the morning that you didn't really want/need it or can't afford it.

Albermarle

 And whenever you're thinking of spending a lot on something/anything (house/car/holiday) stop and think about it over night.  You might decide in the morning that you didn't really want/need it or can't afford it.

Yes , useful advice for any big decision, financial or otherwise . Sleep on it !

daz378

Theres an itv    news lifestyle program  on  one day this  week....where they get a bunch of 20 something's  in a focus group    and rate   potential  items of expenditure  in terms of importance,  i.e holidays  house deposit  etc...and ask again at the end of a retirement  class...should be interesting 

anonmoose

Brie said:

No  - but only because I don't have kids.  But I have promoted the idea of pensions to my young colleagues pointing out that work pensions in particular are easy and because the money doesn't actually go into their bank account it's a painless way to put aside money for the future.

I think if you are older than some of your colleagues at work it is good to talk to them about pensions.  I know my pension pot needs some work but it would be far lower if that old chap in my first company didn't bang on about the importance of having a decent pension.  Otherwise I might have neglected my pension completely as I didn't get any financial advice from parents growing up.  I wish I could go back and thank him. 

My eldest is 17 with a good well paid part time job and I am gently trying to suggest she contributes 5% now.  All she cares about now though is uni costs, possible gap years and having some fun with this new disposable income which I can totally understand. 

When she finishes uni I will try my best to get her to understand the importance of generous contributions whilst she is still young.  Does anyone have any books or online resources they recommend for this age group that are an easy read/entertaining but still get the message across?  I will have a look at the Monevator ones.

DT2001

Yes we do but definitely helped by the fact their grandmother put in £3,600 for each of them when they were very young. They see the annual statements and it encourages savings. Our eldest has just finished an apprenticeship and has gone self employed. He needs a van so he can take on larger jobs and is saving for that. Hopefully when that is accomplished his pension will be added to. 

Our daughter is aware of them as short term contracted jobs during Uni years gave her paperwork about them which was discussed.
With inheritable pots many will have the help of parents and growth over many decades. Our children will no doubt be encouraging us to be frugal with our drawings!

Murphy_The_Cat

DT2001 said:

Yes we do but definitely helped by the fact their grandmother put in £3,600 for each of them when they were very young.

That is absolutely invaluable.

Even though JISA's & SIPP's are for the long run, it really helps the cause when the sprogs can see investment growth and the early shoots of "the miracle of compund interest".  The other "thing" is making sure that they know that the value of their investments will go down from time to time as well as up and not to lose heart when it happens.

You haven't said what the timescale of their grandmother gifting the £3600  was, but they may have seen a few peaks and troughs of performance since.

DT2001

Murphy_The_Cat said:

DT2001 said:

Yes we do but definitely helped by the fact their grandmother put in £3,600 for each of them when they were very young.

That is absolutely invaluable.

Even though JISA's & SIPP's are for the long run, it really helps the cause when the sprogs can see investment growth and the early shoots of "the miracle of compund interest".  The other "thing" is making sure that they know that the value of their investments will go down from time to time as well as up and not to lose heart when it happens.

You haven't said what the timescale of their grandmother gifting the £3600  was, but they may have seen a few peaks and troughs of performance since.

Murphy_The_Cat said:

DT2001 said:

Yes we do but definitely helped by the fact their grandmother put in £3,600 for each of them when they were very young.

That is absolutely invaluable.

Even though JISA's & SIPP's are for the long run, it really helps the cause when the sprogs can see investment growth and the early shoots of "the miracle of compund interest".  The other "thing" is making sure that they know that the value of their investments will go down from time to time as well as up and not to lose heart when it happens.

You haven't said what the timescale of their grandmother gifting the £3600  was, but they may have seen a few peaks and troughs of performance since.

2 from birth (14 and 18 years ago) and 2 about 20 years ago.

They have seen a decrease recently as valuations are online and not a piece of post to be opened and stuffed in a file,

They have seen one siblings do so much better than the others which lead to a discussion about regular savings and pound cost averaging and timing the market (let us guess where the funds will be in 6/12 months)!