I love this idea for teaching your children about money. Let the bank of mum and dad become a true savings and loans co-operative and that’s exactly what one parent is doing.
I’ve been blogging a lot about financial education recently, we’re in the midst of campaigning to get financial education in schools and on the back of my speech to MPs video, one of the forum responses really sparked me.
Originally Posted by Julie Georgiana.
"I educate my son in the way of money… but watch out as other parents do not!
I am so pleased that someone has gotten the ball rolling on such an important subject.
My son is 8 and he is starting to understand what acrruing money and APR’s are!
He get’s 12% on his savings and has to work out his interest himself once a month.
I charge 100% interest on loans… he doesn’t like that!
All his money he earns and he spends carefully!
I know adults who don’t look after their money so well!"
Fantastic! By incentivising savings, but having horrendous rates for debt, it’s great conditioning that you should only borrow when you’ve really thought it through and putting cash aside for the future is worth it.
Are any other parents doing something similar?