The role of parents in financial education

[mashman]

It will get spent eventually - just not by the banks. Its your choice to give money to the banks in interest - I´ll bet you´ll be one of the first to moan and mutter about rich pricks when the guy next doors buys a brand new boat to celebrate his retirement despite the fact he has earned the same as you but been more careful. My point is that even a relatively small overpayment in interest can make a huge difference maximising your "spend now money" doesnt always make good sense - you need a balance - something young adults should be made aware of. Not all bank managers will tell you it.

Why would I moan about what someone else has? I'm too busy with what too many don't have. My dad had a boat, well, 2, my sister went to one of the best schools in the UK, my step mother was from a well off family, I became my own man and went straight to the bottom of the pile. I've seen both ends of the scale, I've dined with serious millionaires and eaten frugally with some of Glasgow's real people, they're night and day in regards to how life is lived yet they both live. Irrespective of financial education, we still have recession, we still have large sums of money being lost through what was once a solid investment that has turned bad. I have made my decision as to how my mortgage will be paid off and I choose that extra bit of life that I can give for my kids. It's my choice, not the smarmy bank managers job.

I assume you don't want to eradicate poverty either?

[Fergus]

WOW that is awesome, and if 1 million people did that, there's be 170,000,000 less money going into the economy each month. I know getting back to my original point is tacky considering this is KB, but how many jobs would be lost with that money not flowing through the economy?

NEWSFLASH: banks are part of the economy (and an integral and influential part at that).

Some financial education might do you some good

[jonbuoy]

Why would I moan about what someone else has? I'm too busy with what too many don't have. My dad had a boat, well, 2, my sister went to one of the best schools in the UK, my step mother was from a well off family, I became my own man and went straight to the bottom of the pile. I've seen both ends of the scale, I've dined with serious millionaires and eaten frugally with some of Glasgow's real people, they're night and day in regards to how life is lived yet they both live. Irrespective of financial education, we still have recession, we still have large sums of money being lost through what was once a solid investment that has turned bad. I have made my decision as to how my mortgage will be paid off and I choose that extra bit of life that I can give for my kids. It's my choice, not the smarmy bank managers job.

I assume you don't want to eradicate poverty either?

How do you make these bizarre connections? From me agreeing with the idea that children should be given some idea about managing money at school (a critical life skill) you assume I don´t want to see poverty irradiated? How does that even work - please explain. The smarmy bank manager is quite happy for you to give him as much interest as possible - educating kids that loan interest is wasted money can only be a good thing for THEM as individuals.

[mashman]

NEWSFLASH: banks are part of the economy (and an integral and influential part at that).

Some financial education might do you some good

I've muddled through fine so far. Plenty of hardwork thrown in for good measure too , yup, go figure. Honestly, it needn't be so hard given that the end goal is to survive and get on as well as possible with our fellow man to advance our shared cause ommmmmmmmm

[mashman]

How do you make these bizarre connections? From me agreeing with the idea that children should be given some idea about managing money at school (a critical life skill) you assume I don´t want to see poverty irradiated? How does that even work - please explain. The smarmy bank manager is quite happy for you to give him as much interest as possible - educating kids that loan interest is wasted money can only be a good thing for THEM as individuals.

Meh. So the bank gets some money. Technically it's theirs anyway and as we have seen in regards to Cyprus, it can be taken away from you too. I ain't gonna sweat it.

In regards to poverty, if you wanted rid of it, you would do whatever it took. The financial system has proven that it has been incapable of doing so for thousands of years. Oddly enough, "my" system can get rid of poverty virtually overnight. Given those two FACTS and given that you choose the current system over mine, I can only deduce that you do not want to rid poverty from the face of the planet (amongst many many other HUGE positives for mankind). It isn't a great leap from one to the other in regards to the connection given that the limiting factor and excuse that we constantly here is, there's no budget... however you live in a lovely fluffy world where poverty is someone else's problem. Oddly enough we can make poverty a thing of the past should we wish to of course. I'm ready for that, are you?

[gwigs]

Meh. So the bank gets some money. Technically it's theirs anyway and as we have seen in regards to Cyprus, it can be taken away from you too. I ain't gonna sweat it.

In regards to poverty, if you wanted rid of it, you would do whatever it took. The financial system has proven that it has been incapable of doing so for thousands of years. Oddly enough, "my" system can get rid of poverty virtually overnight. Given those two FACTS and given that you choose the current system over mine, I can only deduce that you do not want to rid poverty from the face of the planet (amongst many many other HUGE positives for mankind). It isn't a great leap from one to the other in regards to the connection given that the limiting factor and excuse that we constantly here is, there's no budget... however you live in a lovely fluffy world where poverty is someone else's problem. Oddly enough we can make poverty a thing of the past should we wish to of course. I'm ready for that, are you?

Where do I sign up..? We are are all people on a tiny planet and we dont share the resources...?
Why do some suffer while some live in luxury we couldnt dream about...balance is all out ... its our planet..evryone should have a say

[jonbuoy]

Meh. So the bank gets some money. Technically it's theirs anyway and as we have seen in regards to Cyprus, it can be taken away from you too. I ain't gonna sweat it.

In regards to poverty, if you wanted rid of it, you would do whatever it took. The financial system has proven that it has been incapable of doing so for thousands of years. Oddly enough, "my" system can get rid of poverty virtually overnight. Given those two FACTS and given that you choose the current system over mine, I can only deduce that you do not want to rid poverty from the face of the planet (amongst many many other HUGE positives for mankind). It isn't a great leap from one to the other in regards to the connection given that the limiting factor and excuse that we constantly here is, there's no budget... however you live in a lovely fluffy world where poverty is someone else's problem. Oddly enough we can make poverty a thing of the past should we wish to of course. I'm ready for that, are you?

Wow you really do have delusions of grandeur. You set up a website and say money is the source of all problems - lets get rid of money. And that's it - that's your contribution and gives you a pedestal to look down at everyone else who doesn't agree? I don´t think you are the first person to come up with a system not based on money so you might want to check your ego. Are you doing all you can to help the poor? Your donating every spare penny you have? Selling your bike - its a luxury after all. Helping out at soup kitchens? Working on your weekends with charities? If not YOUR not doing absolutely everything you can to help rid the world of poverty all your doing is standing in speakers corner ranting and raving at the pigeons.

So the original post was about giving kids some financial sense before they go into the workforce at the moment as far as I´m aware they get nothing - not even something to help them understand the deductions on their first paycheck. You think they are better off not knowing anything?

[Genestho]

[Snip]

Extrapolate. If you understand economics as you claim then there should be no issue. No one buying anything they they deem "frivolous" means that those industry's will collapse. The economic effects are far reaching. Not sure if you're trolling or not wanting to go there, but

True. You can do both, but there will be a consequence to that financial responsibility

Do you understand what a portion of earnings towards savings means. It is a percentage, not all.
This enables a spend/save ratio that works in your world.

And again, not everyone is saving the same, at the same rate, nor spending savings at the same rate, so again, in the worlds population it all becomes relative.

Industry accordingly adjust prices to meet the market, which is what we've seen in relatively recent times.
So the car oops, bike!! (or whatever the goal is) that was to be ticked plus interest is still bought, but paid for in cash so to speak, this also increases bargaining power to knock the purchase price lower or go somewhere else.
Therefore the spend still occurs at the same rate of knots, possibly faster as you're earning interest and compiling it as opposed to paying interest but under the purchasers control, not a finance company or bank.
This is all quite basic.

[gwigs]

Money its a Gas...Grab that cash with both hands...I,m alright Jack..

[mashman]

Where do I sign up..? We are are all people on a tiny planet and we dont share the resources...?
Why do some suffer while some live in luxury we couldnt dream about...balance is all out ... its our planet..evryone should have a say

Nowhere just yet. We'll see how we go

Wow you really do have delusions of grandeur. You set up a website and say money is the source of all problems - lets get rid of money. And that's it - that's your contribution and gives you a pedestal to look down at everyone else who doesn't agree? I don´t think you are the first person to come up with a system not based on money so you might want to check your ego. Are you doing all you can to help the poor? Your donating every spare penny you have? Selling your bike - its a luxury after all. Helping out at soup kitchens? Working on your weekends with charities? If not YOUR not doing absolutely everything you can to help rid the world of poverty all your doing is standing in speakers corner ranting and raving at the pigeons.

So the original post was about giving kids some financial sense before they go into the workforce at the moment as far as I´m aware they get nothing - not even something to help them understand the deductions on their first paycheck. You think they are better off not knowing anything?

you really do miss the point doncha? I ain't on no pedestal, I'm shoulder to shoulder with brothers and sisters. There is no ego. There are no delusions of grandeur. Just those that you an Oscar think that I have. You're wrong, quite plain and simply wrong. As I've said WE can change things in the blink of an eye, but it does take US, or at least a majority of US. If you're feeling inferior, then you are feeling inferior. I'm not sitting in judgement over you, I merely asked you a question that you didn't answer. Are you prepared to do whatever it takes? Yes I could do more. Currently I'm not ready to do more. Yes that grates on me in so many ways, years and years wasted being a good little citizen whilst idiots run amok around the globe destroying everything they lay their fucked up eyes on. But I am ready for that change should it come sooner. I am fully aware that I am not the only one to have floated a similar idea, although I've yet to read of anyone that will do it "my" way. I take some pride in coming up with something new that looks like it could actually work. I need people to help me. I will ask people to help me when I'm ready. Until then, I will talk and people will either agree or disagree. No doubt you're scratching your head wondering what you're reading. Don't sweat it, I got dis shit.

It was. Who gives a fuck what the deductions are, they know what they end up with in their pocket. If they want to know, I'm sure they'll be resourceful enough to ask. Are you ever going to answer the question in regards to what will happen to the economy should a large majority of kids take their finances seriously and not spend on what they otherwise would have spent on?

[mashman]

Do you understand what a portion of earnings towards savings means. It is a percentage, not all.
This enables a spend/save ratio that works in your world.

And again, not everyone is saving the same, at the same rate, nor spending savings at the same rate, so again, in the worlds population it all becomes relative.

Industry accordingly adjust prices to meet the market, which is what we've seen in relatively recent times.
So the car oops, bike!! (or whatever the goal is) that was to be ticked plus interest is still bought, but paid for in cash so to speak, this also increases bargaining power to knock the purchase price lower or go somewhere else.
Therefore the spend still occurs at the same rate of knots, possibly faster as you're earning interest and compiling it as opposed to paying interest but under the purchasers control, not a finance company or bank.
This is all quite basic.

I do understand that yes. You can't save it all as you would starve to death amongst other things. In other words discretionary and disposable income to use the technical terms.

True. But if enough kids are what you would class as financially sensible, there will be a knock on effect to the economy as far as I can see. Would you not agree?

If a person is financially savvy, they will realise that it is cheaper not to have the car or bike in the first place, but to use public transport. No car/bike sales... and if the goal is to get into the housing market, why would you need either, especially in the big city? I had a house before I owned a car. Perhaps you're saving for that couch, or that TV, or whatever it is you;re going to save for that you ordinarily would have spent on other things. Saving/Not spending will have an economic affect that is greater than the individual. And in response to that will industry lower their prices to make up the shortfall? If not, then in 5 years time, you could be paying 2.5k over and above (true you could be paying less) the value. I understand the tradeoffs, and I would venture that many do when it comes down to it. The economy is built on debt and it needs more debt to grow.
Also, why, if people are happy with paying 5k of interest over 5 years (which they are), would a person wait when the can realise the dream of having a car in the first place. This happens with a greater success rate than not. Yes you pay more, but your realise the benefits earlier and pay the loan interest that you are happy with paying. An economic trade off.

[Ocean1]

Are you ever going to answer the question in regards to what will happen to the economy should a large majority of kids take their finances seriously and not spend on what they otherwise would have spent on?

A lot fewer of them defaulting on poorly considered loans.

And no GFC.

Couldn't possibly get more obvious than that.

Starting to sink in yet? Everyone else is correct, you're the one that's got it horribly wrong.

[jonbuoy]

Nowhere just yet. We'll see how we go



you really do miss the point doncha? I ain't on no pedestal, I'm shoulder to shoulder with brothers and sisters. There is no ego. There are no delusions of grandeur. Just those that you an Oscar think that I have. You're wrong, quite plain and simply wrong. As I've said WE can change things in the blink of an eye, but it does take US, or at least a majority of US. If you're feeling inferior, then you are feeling inferior. I'm not sitting in judgement over you, I merely asked you a question that you didn't answer. Are you prepared to do whatever it takes? Yes I could do more. Currently I'm not ready to do more. Yes that grates on me in so many ways, years and years wasted being a good little citizen whilst idiots run amok around the globe destroying everything they lay their fucked up eyes on. But I am ready for that change should it come sooner. I am fully aware that I am not the only one to have floated a similar idea, although I've yet to read of anyone that will do it "my" way. I take some pride in coming up with something new that looks like it could actually work. I need people to help me. I will ask people to help me when I'm ready. Until then, I will talk and people will either agree or disagree. No doubt you're scratching your head wondering what you're reading. Don't sweat it, I got dis shit.

It was. Who gives a fuck what the deductions are, they know what they end up with in their pocket. If they want to know, I'm sure they'll be resourceful enough to ask. Are you ever going to answer the question in regards to what will happen to the economy should a large majority of kids take their finances seriously and not spend on what they otherwise would have spent on?

If I was prepared to do whatever it takes I would live a simple existence and give all my spare money to the poor - so no I'm not doing what it takes and neither are you.

To answer your question I would think we would go back to the older economic models of spending within your means- no it wouldn't lead to the huge economic highs or growth we have had buy it should also prevent the same catastrophe from happening again.

As to not caring what the deductions are- really? You want to breed apathy- how will people know if they have been put into the wrong tax bracket unless the tax man tells them? Without studying the bank and credit card statements how will the know if they have been defrauded or overcharged? Look at the payment protection scam it's a good example.

[mashman]

A lot fewer of them defaulting on poorly considered loans.

And no GFC.

Couldn't possibly get more obvious than that.

Starting to sink in yet? Everyone else is correct, you're the one that's got it horribly wrong.

I'm still not giving you another sticker.

[mashman]

If I was prepared to do whatever it takes I would live a simple existence and give all my spare money to the poor - so no I'm not doing what it takes and neither are you.

To answer your question I would think we would go back to the older economic models of spending within your means- no it wouldn't lead to the huge economic highs or growth we have had buy it should also prevent the same catastrophe from happening again.

As to not caring what the deductions are- really? You want to breed apathy- how will people know if they have been put into the wrong tax bracket unless the tax man tells them? Without studying the bank and credit card statements how will the know if they have been defrauded or overcharged? Look at the payment protection scam it's a good example.

People already do that and it hasn't made a dent. Something more effective needs to be done. I asked if you would be prepared to do what it takes, not are you doing.

How can you go back?

Yes really. It's not apathy if you know what you have in your pocket. Surely credit cards would be banned?