My 17 yr old son - asked me what our financial position is

As a young teenager I always worried about finances, as it was one of my chores to pay the rent... 'That's dead money..'

I was about 12 when first sent to pay it ... Don't lose it , get a receipt. bla bla.
Perhaps this type of thing is a better kind of financial lesson, than telling your teenagers how much are rolling in?
ps. will miss Thredbo this year, but thinking about 'cross country' in the New Year

 

Thanks for the great replies

I personally think my son doesn’t need to know our exact financial situation - but I would like to go through the nuts and bolts of what we are trying to do with him - from a educational point of view

 

Dear Arctic,
make him work for it... there is no such thing as passive income!!!
let us know how you go?
I hope this helps

 

My 8 year old is negotiating for a nentendo switch for 6 months now. I think I can negotiate for about 6 months more.


Regards

 

I think it is unfortunate that we need to keep our actual financial position "secret" in society - even among relatives and close friends. I am trying to learn, and it is difficult when you cant have a direct conversation with people. Unfortunately, as many on this forum have experienced, people can act weird when they know what you are doing. Some people take other's success as a criticism, which is sad - I prefer to see it as inspiration. Then there are the mistakes which we are not particularly proud of, and would prefer to keep to ourselves - but again they would be great learning opportunities if we could discuss and workshop alternatives.

And also unfortunately, kids do not have the tact or discretion to know how much to say, when to say it, or how to say it without offending, bragging, or having it sound like a criticism (I guess many adults lack this ability too!)

So while I wont be sharing specific figures with my kids, I am trying to guide them to being better with money than I have been, and at least arm them with the knowledge of what is possible.

Cheers,
Inertia.

 

I can't remember when I became aware of PI within our home environment, it had just always been there from having to write up the rent receipts and collect the rent through to getting involved in open house, writing the adverts for the SMH, tenant selection, design management, preparation of estimates/budgets, tendering, agent selection, drafting lease provisions with solicitors, management of make good/exit conditions etc. As I got older, I got more involved.

Our kids can see what we're doing, what I do for others and in time will be taken through a complete project from site selection, feaso, budgeting, project planning, development, etc.

 

We have no secrets with our kids or even those very close to us. From early on they were told what we discuss at home stays at home so finances are always discussed with some ground rules established first.
We believe kids learn from us, our values, from schools and society and so on, so why shouldn't we discuss how and what we achieved so far, especially migrating into this country only with few suitcases?
They are also aware what we own or have achieved...it doesn't imply it's theirs either! We always told them we may need to sell or liquidate for unexpected circumstances that may arise or blow it if we decide to do so!
So we are very open, and now they actually keep asking more and more (one just finished UNI the other still at UNI) so it is great they they can learn and understand theory as well as from our experiences.
One has already started to invest and the other is saving to get there too....
Some will learn from those that 'walk the talk' rather than just talk (theory) so why not be their mentors too.
We share the successes and losses BUT the main aim is to develop them to realize it is all up to them as no two people are or will be the same, it is all about their journey and what it makes out of them rather than what they will achieve, whether financially or otherwise.
As my mentor Jim Rohn said:
- For what it will make of you to achieve it.
- The major value in life is not what you get. The major value in life is what you become. That is why I wish to pay fair price for every value. If I have to pay for it or earn it, that makes something of me. If I get it for free, that makes nothing of me.
- Whatever good things we build end up building us.
- Your personal philosophy is the greatest determining factor in how your life works out.

 

yes, i am with MWI and Scott-one-mate on this.
We spent a fortune on our kids education - to go to good schools - so we see education of the children as the single highest priority. We tell them every figure they want, show them every profit and loss or balance sheet they wish to see. We talk business strategies around the nightly dinner table, where we value the childrens input and suggestions.

We do that because the bigger goal - of all this work and property - is ultimately for the childrens benefit, they are the heirs.

Why would you want to keep it a secret?
Becuase they might... what?... ask... for a new bike?
But if they are involved in the journey, understand the goals, they won't.

Keep it a secret? So, what, your kids grow up knowing nothing about the inputs and outputs of money, business and property. What is the child rearing strategy behind that?

PS. Other topics at the dinner table include; sex, religion and politics

 

It was dinner table discussion long before I was 17, though the exact financial position was not spoken it a bit more broader brush.
And like others it was fun having some responsibilities, related tasks and being involved in long term planning.

 

I think a few of you are confusing the issue of discussing finances, being open about property (and other) investing, and the issue of telling your children your exact finanical position.

You can talk in broad spectrum, and even in minute detail about investments with your kids, and still not tell them what your exact financial position is.

An exact finacial position would involve telling them exacting how much money you have at any given time everywhere, and exactly what debts and other liabilities you have in detail.

And if you want your children knowing all of those things, then I would make the assumption that you know your children best so that's obviously what works for you best.

Personally, we are extremely open about finances and investments, incomes and costs and such in general term and even in specific details when pertinent. I happily run through the fortnightly budget with them, and talk numbers about various investments.
They can know what is nessecary for them to know for their own education, but they don't get to know to the exact details that the ATO might know.

It was different back when we had no, or very little, investments, assest and cash. Back then the day to day finacial situation was the only finacial situation. So it didn't matter sharing that we had no assests, investments or money.