What do your kids understand (and misunderstand) about money?

MSE_Laura_F

I'd like to know how much your kids (please mention age bracket) understand about money.

Is there anything they definitely don't understand about money at this stage?

And was there one particular moment that flicked the lightbulb on for them?

Savvy_Sue

Lightbulb: DS3, youngest, 18, just moved out of home after the first month of Uni, into local hall of residence. There were regular visits, not always when we were home, as we'd find an odd number of yoghourts left in the fridge, packets of ham opened earlier than expected etc. 

When challenged on the fridge raids, he indignantly asked "but do you KNOW how much MEAT costs?"

Yes darling, I do ... 

He's now gone veggie.

MaryNB

Not my child but my younger brother. I went home for a weekend around the time water charges were being introduced in Ireland (since been scrapped). He (mid 20s at the time) was working full time as an engineer while living at home but my parents weren't charging him rent or asking for money for bills. He was trying to argue how hard they had it and how unfair water charges were and came out with (in an incredulous and disdainful tone) "did you know, they're going to charge us before we even use anything?!!!". I gently informed him he was referring to a standing charge which all utility suppliers charge, in both the UK and Ireland. 

Spendless

Both mine moaned about the cost of washing machines and tumble dryers in halls of residence. They weren't free like they are at Mum and Dads

Eldest even based his 2nd year accommodation on moving to somewhere that had 'free' washers and dryers. Not one stayed for their next year because the rent was a lot more and the internet connection not good. He realised that broadband speed was more important than free washing - especially when doing a computer degree!

pinkshoes

DS2 (age 6) asked where you get your money. I told him you get a job and work to get money. He then asked how do you pay for the job!

I suppose we pay for afterschool and breakfast club, we pay for activities, so he also thinks that you pay for jobs!

All 3 kids (ages 6, 6 and 11) understand that things you plug in use energy, and energy costs money. Things that heat up (ovens, hairdryers, tumble dryers) cost more per second than things that do not heat up.

DS1 (age 11) has a good understanding about money. He understands both parents work to pay for the house (mortgage) and that if I didn't work, then we would need to buy a smaller/cheaper house and two of them would have to share a bedroom, plus we wouldn't be able to afford to have a second car and therefore no way of getting to activities.

He also understands it is important to live within your means, and knows the difference between things you WANT and things you NEED to buy. e.g. if you only have £100 and need a sofa, then it is far better to get a second hand one for £100 than pay for one on finance. You do not NEED a brand new sofa.

Spendless

pinkshoes said:

DS2 (age 6) asked where you get your money. I told him you get a job and work to get money. He then asked how do you pay for the job!

I suppose we pay for afterschool and breakfast club, we pay for activities, so he also thinks that you pay for jobs!

I can sort of see his logic. As a child I asked similar about librarian's pay because to me it wouldn't be very much if their wages just came from people being fined on late returns. I didn't understand about public sector jobs. My Mum was a hairdresser so her wages came from people paying her to do their hair less any materials (overhead costs) so I thought every job was along the same sort of lines. ,  

Grumpy_chap

pinkshoes said:

DS2 (age 6) asked where you get your money. I told him you get a job and work to get money. He then asked how do you pay for the job!

I suppose we pay for afterschool and breakfast club, we pay for activities, so he also thinks that you pay for jobs!

The ideal, of course, is to get a job that you enjoy so much that you would be willing to pay for it.

Frogletina

I was trying to explain about the need to pay different taxes.

That confused them, as they thought I meant taxis!

silvercar

Mine are adults. I am still shocked by what they don't understand.

Credit cards.

Mortgages in particular, explaining that the equity is all yours and can go up and down over the long term but the mortgage is fixed.  

JadedAngel88

Thanks to MSE, my daughter aged 25, has had a good financial education. 

Since I joined, every thing I've read about anything money, I've passed onto her. The only thing I haven't covered is mortgages, I don't own a house, very unlikely to ever own a house and have no idea how they work.

So she saves, has a credit card or 2 that she pays in full every month, knows how to get the best deal, etc. All that I wasn't told by my own parents.

I'm still useless with money but pleased that I've broken that cycle with my own daughter. 

zagfles

Savvy_Sue said:

Lightbulb: DS3, youngest, 18, just moved out of home after the first month of Uni, into local hall of residence. There were regular visits, not always when we were home, as we'd find an odd number of yoghourts left in the fridge, packets of ham opened earlier than expected etc. 

When challenged on the fridge raids, he indignantly asked "but do you KNOW how much MEAT costs?"

Yes darling, I do ... 

He's now gone veggie.

yes ours went veggie at uni, they eat meat at home though! They seemed to be shocked at how much things they'd previously not thought about costs, but they both ended up with loads to spare from their loans...