5 Things Teens Should Be Taught About Money

scroooge

companys spend millions each year advertising products kids or there mums and dads or other relatives pay millions to give free advertising to these same companys whom would probably go out of business if they had to rely on sales based on qulity and value for money having seen with my own eyes invoices for products 10x or20x markups on imported prices manufactured in sweatshops from the third world buying direct quility products from these third world countrys would benifet both of us percentage wise they would probably get more of the money spent and not some multi millionare who only needs another 10 million like we all need another hole in the head so buy ethicle buy cheap buy quility

Gabs27

There are a lot of them about.

... yes I know - but credit where its due

Gabs27

I think finances should be taught in school - a lot more useful in life than trigonometry

AndyR_3

I spent 94p on my mum to get her two 125g bars of aero (mint and milk) from tesco, i am then going to give her a stamp as they were also try for free

If it's the same offer I sent off for, you don't even need a stamp - they have a freepost address. That's another 21p saved ;D


I'd teach teenagers somthing my gran used to say - "Look after the pennies, and the pounds will look after themselves" - Good advice which kept me out of lots of debt at uni and has saved me a fortune since.

I'd teach teenagers to budget too - I know other people have already said that. I work in a bank looking after student customers, and it is amazing how many of them don't know how much money they have or how much they spend each week. Sometimes, they only realise there's a problem when their debit card stops working. By drawing up a realistic budget and sticking to it, it's easy to survive the term without getting into debt.

I'd also teach people how bank accounts work - the difference between standing orders and direct debits, and how to avoid bank charges. I'd teach people about the way to use credit cards sensibly.

I'd teach people about insurance too - the need for insurance and the consiquences of not having it. But I'd also teach people when they don't need insurance - for example someone with no dependents may not need life cover. Someone buying an electrical appliance doesn't really need an extended warranty. A lot of people are ripped off by paying for insurance that they don't need, or by not claiming on insurance because they don't know they're covered.

randommarble

''I spent 94p on my mum to get her two 125g bars of aero (mint and milk) from tesco, i am then going to give her a stamp as they were also try for free" - posted by me earlier


"If it's the same offer I sent off for, you don't even need a stamp - they have a freepost address. That's another 21p saved Grin '' - posted by AndyR

Yes, thanks. Noticed that after posted message. Makes them great offer, they're paying you to take them away. £1.12 in your pocket and two aero bars ;D

jellyhead

i never got into debt at uni, but i had a weekend job. mum never got into debt and i'd like to say that her setting a good example is what made me so penny-pinching but my siblings are all really hopeless with money so there must be some other reason for my being debt-free as a youngster (and right up until i married a man who is hopeless with money!). i really think it's because i did a paper round.

i recently started a paper round again, as an older person looking for money-earning opportunities while child was in school. the pay worked out at minimum wage, they decided on an average time for delivering the papers and the pay was supposed to be the minimum wage for the amount of hours worked. for a teenager i don't think this would work out too well because i'm not sure that there is a minimum wage for under 16's and the wage is pretty low for under 22's anyhow. there's a young lad now doing the paper round i had and he gets paid less than i did which seems unfair.

as for working at under 16 i had a cash-in-hand job on a market stall. there were always people under 16 working in corner shops on saturdays too. you could always be an avon rep if your mum agreed to sign for financial responsibility but it doesn't always pay well. my mum says her work colleague's daughter has a saturday job at poundstretcher and they only pay £2 an hour!

uf353432

Where possible - overpay credit (even fixed term loans) when the interest is worked out monthly - it will do so on a smaller balance which will result in less interest being charged. This is particularly true on mortages where additional payments of just £20 per month can take years off your mortgage.

Payment breaks/holidays, deferred starts, changing payment date - all really useful tools that credit companies advertise as benefits of taking out a loan with them - all tools to make us pay more interest by extending the loans. You pay interest on period of the extension and then interest on the interest for the duration of the loan!

If you borrow it you have to pay it back. The thrill of making that purchase has to far outweigh the long term pain of paying it back.

Savings are important and will give you more empowerment. If you have the cash in the bank - you call the shots. If you borrow it the lender calls the shots.

Budget budget budget. Make a plan, allow cash for contingencies, and more importantly follow it.

Credit is not a bad thing, if it is controlled and you have the means to repay its a useful thing which you can use to your own benefit. But you do have to pay for the perk of having money now and paying later. Although you may be able to get something 0% and not pay the credit company for having that money now - you will reduce the money you can save each month - which means you may have to resort to credit to make the next purchase as well. Ultimately you do have to pay for credit - its just a matter of time - and the credit companies only have to sit and wait for that day to come. You should not be scared of credit - just cautious.

Travelqueen

Regarding Saturday jobs - I had real trouble at 14 finding a job - used to be the whole babysitting game. However, once I turned 15 it was a lot easier. I would say try the local stores - I worked in a Deli for 2 years & used to take home all the unsold bread / cakes at the end of the day - saved my mum a packet whilst I worked there! I also worked evenings in various local pubs as a waitress (you can do this at 15 too). My sisters did the same & also worked on Marketing research phone-lines (from 16). Also, from 18 security work pays well - yes, for women, as they need people who can pat-down search both sexes...

Regarding making yourself some money - a friend of mine started selling rag-dolls she made herself at car boot sales at the age of 13. She got the material cheap / free from charity shops / shop soiled etc, made them up & sold them quite cheaply - they were very popular around xmas of course, and she targeted her marget accordingly - dolls with hearts for valentines etc. She is now a successful interior designer - she started this by reupholstering the chairs in the local pub when she was 18/19.

The challenge is obviously to find something you're good at / enjoy and make money that way - for example, friends have asked me to paint canvasses for them, they buy the materials, I give my time for free (I'd only be watching TV anyway) and get £20 a time for charity - I used to paint on fake tattoos at parties though, and that paid very well - maybe you could offer a similar service at kids parties, it would only cost a small amount to buy the equipment, and you could start by asking about your school friends younger siblings parties?

Keep up the good work, and I'd definately come down on the side of going to Uni, if I hadn't I wouldn't have been able to travel so much as I'd have never learned the languages I speak...

Take care

TQ

Big_Nige

As Martin & Einstein said "the most important force in the universe is ........ compound interest."
I was taught about compound interest & mortgages at primary school (primary 6 or 7) -- 24 years ago.
I would tell teenagers & adults alike:                              
1.save what you can .. 2 months gross salary in the bank for that rainy day for when the car needs a new clutch etc.
2.Pay as much of your debt off as quickly as possible never just the minimum payment.
3.Work the system to your advantage, tax free savings, 0% credit cards, student accounts pricing errors in shops do they refund & give you the product free
4.Always ask for a discount - you dont ask you dont get.
5.Subscribe to money saving expert's e mail

MSE_Martin

I'm really fascinated by this discussion.

I think it'd make a great 'little book of' so i need to warn you folks I am reading the thread with interest - although no guarantees, i think it'd be a nice thing to do as a charity book with the money going to educate teenagers.

So beware you posts may just come back to haunt you

(no promises though)