Teens and financial knowledge

Better than the speaker at one of the presentation dos that I attended. The presenter runs a successful boutique coffee brand/roastery/etc - he was a high school dropout/misfit, poor HSC outcome etc. Moral of the story was HSC/ATAR isn't the be all and end all (nor is coffee) - not the story you want presented to a group of high performers.

 

I must add that my financial development was also greatly assisted by this very forum right back to the yr 2000.

 

My kids have had a few assigments around financial literacy in school so there is some things taught. I recall one assigment asked them to develop a budget, another where they learnt about compounding interest in Maths

It reminds me of a conversation I had with DD20 this week. He has decided he's going to build me some feasibility software and wanted to know about mortgage repayments to put that into it. He said " how much extra should you repay as a loan repayment? seeing as compounding interest justifies compounding loan repayments (don't want to be paying the flat rate the entire time or your risk factors smack you)?" . He's studying software engineering and learning about risk in software development.

I explained that yes it can be a great idea to pay extra, especially if it's for a PPOR, but that many investors will chose to pay the minimum for P&I or even just IO. He had no idea that there was such a thing as IO so we had a good talk about offsets, IO, P&I and the tax advantages to both and how strategies may impact those decisions. But for feasibility we tend to work on just paying the minimum as extras is a personal choice.

 

Playing the Monopoly boardgame is a fun and practical way to teach kids how investments work and the end benefits they could reap

 

The barefoot investor is trying to get financial management information in to schools. While I suspect a lot of people on this forum would dismiss the barefoot investor, I think his approach is entirely appropriate for school aged kids. Simple, easy, and establishes good habits. If kids get that far, they will be doing great, but they always have the opportunity to learn more and look at more complex financial options.

@willair mentioned the commbank being in schools. Again, the barefoot investor has a thing or two to say about that, and I tend to agree with him - it is a marketing campaign to get kids aligned with commbank early, in an attempt to keep them as a customer when they get older. I think previously they even used to send invitations for credit cards as soon as they turned 18.

Cheers,
Inertia

 

The property couch had Paul Clitheroe on, he seems to be working with government to try and shape the school curriculum around money management for teens.
Episode 200 | Paul Clitheroe - Timeless Wisdom from the Original “Money” Guru - The Property Couch

 

Had a friend who was unbeatable at Monopoly.
Not so successful in life though.

Needs to have a real tangible stake in the game.

 

My 7 year old daughter beat me at monopoly, and I swear I didnt let her win.
I traded her in for a more inferior model.

 

Also had a nephew was unbeatable at monopoly.
Advised them to become a real estate Agent where the best deals come across your desk first.
Not interested, instead works as call centre for a local council. Go figure?
Stands to inherit a motza though......one day...