Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • purplepurple
    • By purplepurple 21st Mar 10, 9:58 AM
    • 618Posts
    • 628Thanks
    purplepurple
    What do you wish you'd known about money when you were young?
    • #1
    • 21st Mar 10, 9:58 AM
    What do you wish you'd known about money when you were young? 21st Mar 10 at 9:58 AM
    Hi All
    I've got to plan a series of lessons on money for year 9's (about 13/14 yrs old) and would really like to know if you have any wise words about money management I could pass onto my pupils? Top tips, hindsight, stuff you wish you'd known, stuff you think is important for kids to know etc.

    There are so many people on this thread who have so much knowledge about money... I want to make the lessons interesting and memorable for the kids to hopefully give them a "toolbox" of knowledge to help them use their money effectively when they're older.

    Any responses would be gratefully received...

    Thanks

    This Forum Tip was included in MoneySavingExpert's weekly email

    Don't miss out on new deals, loopholes, and vouchers

    Last edited by MSE Deborah; 30-03-2010 at 8:07 PM.
Page 1
  • pure dead dopey
    • #2
    • 21st Mar 10, 10:10 AM
    • #2
    • 21st Mar 10, 10:10 AM
    just the basic one which I think we have completely lost, credit is the work of the devil, save up for what you need, you don't hve an automatic right to everything you want, hard one to put over and probably not what they want to hear but wish someone had drilled it in to me at an early age...................I'm 54 and just learning so maybe I need to attend a class or two?
    More than Two Years in

    Doing it the Niddy way

  • anonymoose
    • #3
    • 21st Mar 10, 10:16 AM
    • #3
    • 21st Mar 10, 10:16 AM
    just the basic one which I think we have completely lost, credit is the work of the devil, save up for what you need, you don't hve an automatic right to everything you want, hard one to put over and probably not what they want to hear but wish someone had drilled it in to me at an early age...................I'm 54 and just learning so maybe I need to attend a class or two?
    Originally posted by pure dead dopey


    Also how APR actually works?
    Proud to be dealing with my debts - LBM Mar 2010

    Start weight 11 st 8.5lbs now 10st 3lb
    2 savers No.99 - 68 July No Spend Days 7/8

    A&L 202 152 Barclaycard 3882.89 3817.74
  • penelopedee
    • #4
    • 21st Mar 10, 10:17 AM
    • #4
    • 21st Mar 10, 10:17 AM
    I think the main point is that they need to take responsibility for their financial situation and never rely on parents, partners or friends to do it for them.

    Also, I can remember being terrified of loans and credit cards because my parents had drummed into me that they were bad and to be avoided at all costs. That meant when I first moved out I just didn't have the courage to shop around for what I needed financially at a decent rate - I just accepted the first thing offered. So there I was on a really cr*p wage paying completely over the top for my mortgage (oh and with PPI). I wish the internet and this site was available then.
    This time I haven't smoked since 6th Jan 2014 and still going ok.
    Fingers crossed x
  • pure dead dopey
    • #5
    • 21st Mar 10, 10:18 AM
    • #5
    • 21st Mar 10, 10:18 AM
    oh yes forgot that one and also perhaps that your happy caring sharing bank has your best interests at heart - I don't think so!
    More than Two Years in

    Doing it the Niddy way

  • Woowoo
    • #6
    • 21st Mar 10, 10:31 AM
    • #6
    • 21st Mar 10, 10:31 AM
    I wish I had understood that anything spent on a credit card is real money and has to be paid back. Paying with cash really does make you learn the true cost of something.

    If you have to put it on the credit card then you can't afford it. I never thought about the fact that a 10 new top on the credit card would eventually cost me more like 50, when you don't pay anything more than the minimum payment every month.

    I wish I had been given money lessons at school, 18 years old is so young to suddenly have access to credit - it is very hard to be responsible and not spend spend spend, but a few lessons at school might help you to understand the implications of your spending.
    LBM Aug 09: 18,650.47 - Current: 12,854.93 (5946.79)

    Barclays: 2,928.34 Lloyds: 2,499.60
    MBNA: 3,788.99 Overdraft: 1,900.00 Mum: 1,738.00

    Surveys: 6.60/40.00
    • LittleMoog
    • By LittleMoog 21st Mar 10, 10:35 AM
    • 2,390 Posts
    • 9,767 Thanks
    LittleMoog
    • #7
    • 21st Mar 10, 10:35 AM
    • #7
    • 21st Mar 10, 10:35 AM
    I know it might seem a bit basic, but there's nothing more important than budgeting! I only figured this out about 3 months ago (I'm 28!! ), and I really wish that I had done a budget when I was a student - I was on full student loan, plus help from my guardians, but still managed to run up a 3000 overdraft and 1300 of credit cards in 5 years. Even after being helped out of the credit card hole by my guardian, with a loan I paid back over a year, I didn't ever think to budget, or stop using credit cards, so until my LBM in January, I happily overspent every month, using credit to top up my income.
    so budgeting is key i think!
    Little monkey born November 2012
    Froglet due March 2016
    • Pink.
    • By Pink. 21st Mar 10, 10:40 AM
    • 17,431 Posts
    • 40,365 Thanks
    Pink.
    • #8
    • 21st Mar 10, 10:40 AM
    • #8
    • 21st Mar 10, 10:40 AM
    Hi purplepurple,

    Martin's teen cash guide might help.

    Pink
    • purplepurple
    • By purplepurple 21st Mar 10, 10:47 AM
    • 618 Posts
    • 628 Thanks
    purplepurple
    • #9
    • 21st Mar 10, 10:47 AM
    • #9
    • 21st Mar 10, 10:47 AM
    Thank you all so much for your replies - they're great... and Martin's teen cash guide is fantastic - thanks for sending me in the right direction for that!

    It's so hard trying to get certain messages across to kids at this age, so being able to use the experiences of others, plus the common sense info in the guide, I should hopefully help them realise that they don't actually know best all the time!
  • BOGOF Queen
    As well as being aware of the dangers of using credit cards and the importance of being able to do a budget so that you can see your income and your expense each month/year, perhaps you could mention the importance of being able to save some money each month. Also how about the importance of starting to put money into a pension fund once they are working. What with talk of the state pension age being upped to nearly 70, if these youngsters want to retire in their 60's, they will need the income to support the years before the state pension kicks in.
    • purplepurple
    • By purplepurple 21st Mar 10, 11:43 AM
    • 618 Posts
    • 628 Thanks
    purplepurple
    . Also how about the importance of starting to put money into a pension fund once they are working. What with talk of the state pension age being upped to nearly 70, if these youngsters want to retire in their 60's, they will need the income to support the years before the state pension kicks in.
    Originally posted by BOGOF Queen
    I did mention to them last week that I had started pension schemes for my children (both under 10 yrs old) and they looked at me as if I was stark raving bonkers.... until we discussed how much money potentially my two could have in the future to retire on...

    will definitely do savings and pensions, ta for the suggestion...
    • Mags_cat
    • By Mags_cat 21st Mar 10, 11:49 AM
    • 1,392 Posts
    • 8,193 Thanks
    Mags_cat
    I'd have found this useful :

    Think about the cost of something you want in relation to your hourly/weekly/monthly income e.g. that jumper will cost me 4 hours work or that car will take me six months to earn.
    • Buffythedebtslayer
    • By Buffythedebtslayer 21st Mar 10, 11:51 AM
    • 15,337 Posts
    • 51,361 Thanks
    Buffythedebtslayer
    I think they should always having savings, not a huge amount and not at the expense of debts but just something to full back on and really to think hard about credit - its not all bad but you must be responsible for yourself

    xxx
    Frugal Living Challenge, Pound a Day challenge, Sealed Pot Challenge Debt 4990 (March)
  • Soubrette
    Don't just look at the monthly repayments - look at what you are repaying as a whole. So if you borrow 2000 for a holiday - don't think oh 60 a month is affordable let's do it - look at what you're borrowing over the whole term - so if you're borrowing an extra 800 over the term, is it worth it?

    Also what will you do if you have borrowings and interest rates rise?

    Sou
    • DarkConvict
    • By DarkConvict 21st Mar 10, 12:05 PM
    • 6,248 Posts
    • 3,056 Thanks
    DarkConvict
    Use the snowballing calculator - Give them examples show them if they pay it with there own money how much they save,

    Buy now on credit over 3 years you have lost 500+ in interest, buy it in 12 months once you can afford it, you own it for the price you paid.

    In life problems happen, at any moment you could loose your job, do you have savings to cover what you owe, or are you in trouble!

    Good old rule, only buy what you can afford. Credit is someone else money if you have to use credit, you can't afford it! When you use someone else's money you have to play by their rules, if they want it back, you have to pay it, if they want to charge you for using it, you have to pay. If you don't understand why credit is bad, don't use it! (If they don't understand the bad they won't be able to understand the good benefits)

    Sadly there is a chap at uni, over the moon he is paying 3 a month for his laptop due to minimum payments on his credit card, we all hung our heads in shame how a 21 year old can really think he is saving money.

    This is the hardest one. Credit cards must be paid back in full every month (that's simple). (This is hard) Show how if you make min payments then month after month the min payment is rising as you spend more, eventually you can't afford min payments. By making minimum payments you feel you have surplus cash available when in reality you do not, you are in debt, by not making full payments each month you have an additional out going of interest that you would not have had if you paid for an item in full. This is the one that catches out so many people, story after story we hear on here is people with several credit cards but then afters years on min payments suddenly they realise all there outgoing is on interest and they can't actually afford to pay it off, by which point it is to late! Average is like 41 years to pay off a credit card if using minimum payments.

    Example

    Want to buy a 1000 laptop, but you can only save 100 a month.

    ----------------------------------------------------------------

    No Credit. Wait 10 months. 1000 saved, laptop brought (and to be honest its probably cheaper and a better specification, but that's the technology industry for you)
    Total cost - 1000

    ----------------------------------------------------------------

    With Credit, 17.9% APR, pay back 100 each month

    Total cost - 1074

    ----------------------------------------------------------------

    With Credit, 17.9% APR, pay only minimum payments (5 or 2% balance)
    It will take you 348 (29 Years!) months to pay off these debts if you snowball correctly. During that time, you'll pay 2,243 in interest.
    Top big to screenshot! So here is start and end


    Total cost - 3,243
    Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.

    There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies
    • earthmother
    • By earthmother 21st Mar 10, 12:07 PM
    • 2,526 Posts
    • 5,433 Thanks
    earthmother
    A bit old fashioned, but still perfectly valid are two quotes -

    Annual income twenty pounds, annual expenditure nineteen six, result happiness.
    Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
    (Dickens)

    And

    Neither a borrower nor a lender be
    (Shakespeare)


    On a more current theme - mags-cats idea is similar to one we've often used for ourselves and the kids - when it came to small/un-necessary spends, we think of what they could add up to. The sky TV went when we explained to the kids that 3 months of Sky equalled a trip on a steam railway or to the Space Centre. Before kids, we didn't do the lottery when it first started, because a pound a week over the year meant a cheap weekend away with the tent, or a new bike helmet - which was a certainty rather than a 1-in-whatever chance of winning.
    DFW Nerd no. 884 - Proud to be dealing with have dealt with my debts
  • lilac_lady
    Explain to them that NOTHING is free when it comes to money, especially if plastic is used to pay for things.
    " The greatest wealth is to live content with little."

    Plato


  • ceridwen
    1. How many ways firms have to make people spend money they neither need (or even particularly want) to spend - eg all those adverts/supermarkets placing their products carefully (goods at tills/cheaper goods on shelves nearer the floor).

    2. You get what you pay for - that is certainly true to a large extent in my experience (there ARE always exceptions to every rule). The British do expect to pay peanuts for some very important things - like their food for instance - and a lot of people dont seem to realise that is not the way to a healthy diet.

    3. If you are paying a cheap price for something (eg budget store clothes) - then the chances are that someone somewhere is bearing part of your costs for you (eg "slave" type labour by employees making these goods). Its not right to pay an overly cheap price for something at someone else's expense (or the Planet's expense).

    4. Its not necessary to be amongst the first group of people to buy some new "widget" on the market. The chances are that a bit further down the line it will have come down a lot in price (as things stand at present).

    5. The effect on the supply of/prices chargeable for things once we hit "Peak Oil" and this resource our society has been based on for 150 years or so starts becoming more and more expensive.
    Last edited by ceridwen; 21-03-2010 at 12:48 PM.
  • ceridwen
    I think they should always having savings, not a huge amount and not at the expense of debts but just something to full back on and really to think hard about credit - its not all bad but you must be responsible for yourself

    xxx
    Originally posted by Buffythedebtslayer
    One thing a bit of savings does is to not just provide the money if/when an unexpected expense comes up - the other purpose of savings is to have a bit of "*** off" money - so you dont absolutely HAVE to take or keep some awful job.

    That particular lesson is going to be even more important to them in the future. Jobs are becoming much more difficult to get and paying less - and the only comeback one has sometimes is to have that little bit of savings stashed away and know that its possible to turn down some particularly awful job and hold out for a better one.
  • ceridwen
    YOU are responsible for your own costs - dont expect other people/the State/etc to cover your costs for you. Make arrangements to ensure that YOU can pay your own costs
    - a. because others/the State cant be relied on
    b. because its not right to try and put your costs onto other peoples/the States shoulders anyway.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

105Posts Today

1,684Users online

Martin's Twitter