Video: Teaching kids and teens about money

Video about teaching kids about money

Video transcript

David - Now teenagers as we all know are a very different breed. All of a sudden they're confident and they're looking at marketing. They're being bombarded with all this pressure from their peers  and from TV and radio buy this, buy that, you should be doing that -- if you want to be hip do this, if you want to get ahead do that...

Well it's up to us to start reigning all that back in and giving them advice on how to be a good consumer, how to start doing a bit of a budget with their pocket money, and we're massive fans of ensuring our kids had a part time job as well to teach them that discipline of holding down a job, and also skills of dealing with the public and stretching themselves a little bit in terms of their own work ethic and their financial ethic as well.

Libby - And the beauty of having an outside job on top of their pocket money jobs, because I still needed help with all those socks, we would sort of get the point across to the kids because, as David said, the peer pressure starts happening and they might want a brand name article, so we would say ok, we've always paid $80 or $100 for new runners that you need for sport, or new jeans, but if you want this label then you've got to pay the difference.We'll pay what we normally pay and sure you can have the label, but you've got to put your hard earned money from McDonald's into making up the difference.

And that then often leads into them deciding if the risk of losing all that hard earned money was worth the reward, but we'd sort of leave them to make that decision, and sometimes they went with it, and then sometimes they reigned themselves back in, and that's the thing with teens if you want them to start learning to make those adjustments for themselves.

David - And also be a good consumer of shopping around, you know checking different shops to get the best bargain. And a lot of them have these smart phones now where you can have an app where you can scan a barcode on an item and it'll come up with better deals elsewhere.

That shopping around mentality I think is really important. The 'yes I desperately want something' but then saying 'do you really'? Why don't you stop and think about it for 24 hours?'

And so, they go through that process and after 24 hours they think, oh, maybe I don't need it because I've got my eye on something else. 

Libby - And my old mantra of 'a sale is not really a sale unless you need the item' and the kids would often see a 40% or 50% off sale and say oh fantastic! But I'd say well did you really want to buy that shirt? Were you thinking maybe of buying it? Because if you weren't then it's not a sale at all! You've still lost 50% of what you might have been outlaying.

David - These teenage years are where you need to prepare them to be financially independent. This is where it starts to count, so all of those tricky financial decisions that you encounter now, if you can bring the kids in on that conversation now, that will prepare them to tackle that issue a whole lot better when they're adults. So don't underestimate you taking them under their wing. 

Libby - And speaking of teaching, don't leave it to the teachers. I mean, the kids might be doing some business studies at high school so don't sort of think oh well, I'll sit back and they'll pick it up. Support the teachers by talking about this at home, just like you did when they were in primary school.

David - Talk to the teachers. Just say, what are you going to be talking to the kids about in this area over the next semester or the rest of the year, and see if you can align your excursions, your practical examples to what they are learning at school.

I'm not saying share all your money problems with your kids. You know, they're still kids. Life's too short for that. They're going to have their own problems in the future. They don't want to inherit yours. But sort of use some of the issues you're facing as a teaching tool.

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Last updated: 09 Aug 2016