Saving up - kids and pocket money

[HarryM1BYT]

They are wittering on about kids earning pocket money and learning to value what they earn and save it...


As a kid, getting pocket money then older doing Saturday job, I never associated the money with the effort. Likewise, throughout my life, I never associated the income directly with the work - rather I worked because I enjoyed / I was entertained by working. Money as income was just there as a salary, rather than the reward for the effort. What I didn't spend, I didn't spend and was saved, I never had a direct sense of that ten pound took me that long to earn.



The older and more established in life I became, the better I became at money management and the more I was able to save, or perhaps not spend. I used to just spend money, because I had it. Now-a-days, I tend to do a cost benefit / convenience analysis for any large unnecessary spend.


For instance..


I recently bought a new large screen TV. Nothing at all wrong with the old one, apart from it wasn't Smart and lacked some modern features and not much difference in size. What swung it for me, other than just fancying a new one, was the new ran on 1/3 the consumption, so would save on the power bill.



More recently, I began thinking to upgrade the controls on my new last March boiler, to improve both the economy, save wear and tear on the boiler and improve comfort - besides I like gadgets It would cost me £160-ish, plus my time which I don't include as a cost and reputed to save 5% on the gas bill. 5% on a £500 annual bill = a repayment time of 6.5 years. Not really worth while, but the gadgetry and extra convenience swung it.


I learned to wait until I could afford things, to not be in a rush to get there and never to borrow or pay interest on borrowed money, because without cash in the bank - you are hit twice over. First you cannot look around for a much cheaper cash bargain, then you are paying interest for the borrowed money. I also have a rule of never buying the latest thing - that newly released phone will be half the price next year and this years phone does almost the same anyway.



This type of thing is the way to teach kids economics and how to save.

[MSS]

Originally Posted by HarryM1BYT

They are wittering on about kids earning pocket money and learning to value what they earn and save it...


As a kid, getting pocket money then older doing Saturday job, I never associated the money with the effort. Likewise, throughout my life, I never associated the income directly with the work - rather I worked because I enjoyed / I was entertained by working. Money as income was just there as a salary, rather than the reward for the effort. What I didn't spend, I didn't spend and was saved, I never had a direct sense of that ten pound took me that long to earn. ....................

That is exactly how I was. I loved every day of my work, even the weekend job when I was at college and then university. All the money was spent on electronic components, kits and the motorbike.

As I have got older, saving has become important because I consider it my duty to give the kids a good start in life. So I think carefully whether I really need something if it is expensive.

I have never bought anything on a loan (other than the house on a mortgage) and never will. I prefer to earn life's luxuries before I enjoy them.

Having lived a responsible and somewhat frugal life, my intention is to one day do something rather reckless and buy a Jaguar or Mercedes V8. Mrs MSS agrees that I should, provided she can have a beech hut in Felixstowe!

p.s. My kids are now teens and at university. They have never had pocket money. They get the essentials provided and a discussion if they want something beyond that. They have never had flashy mobile phones etc. because the message has always been that you spend on luxuries after paying off the mortgage and saving a little.

They do occasionally say that living with me has been a bundle of fun whilst rolling their eyes!

[planenut]

If my kids wanted something special, then we said that they would have to save and pay for it; then when they clearly had put some effort in, we took them to purchase the item by adding a good percentage.

If one does not have to earn to pay for an item, one does not understand the effort needed to acquire it and then to respect and care for said item.

[Rev Jules]

Kids pocket money came in very handy when the meter ran dry, promised to pay them back, never did shameful I know, but have made up for it over the years by lending them loads of dosh, and guess what never paid me back either.

Rev