When it comes to teaching our children about or how to do anything the best way is always by example. If show our kids that we are sensible with saving money and that we have to work hard to earn the money we spend then they will get a rounded idea about finance and spending/saving.
I have three small children and I am very conscious of how much I spend and on what. I explain very carefully to my children that I have to work hard and that there are bills to be paid and expenses such as food and clothing to be paid for before we can spend on luxuries. Each of my children have savings accounts, which they know about, we have encouraged them to put money into these accounts to save for their future, such as going to university, buying their first home.
In our home we don’t give the children pocket money but we do encourage them to earn money by doing extra jobs in the home and garden. Earning makes the children feel that they have achieved something, usually we let them spend some of this money on treats.
Should children be taught about finance in schools? When I went to secondary school we were taught commerce which was a mixture of economics and personal finance, it was a very useful subject. It can’t all be left to the schools but commerce and accounts does help to formalise the learning they have gained at home.
In our modern society, debt is extremely difficult to avoid. UK residents together owe hundreds of millions of pounds. So, how can we educate the futures generations on how to manage debt and how can we prevent them from falling through the same trap doors.
When it comes to finances, I think it is important to treat children as young adults when it comes to managing finances, you cannot wrap them in cotton wool and hope for the best because debt can put people in very dark places. You should sit down with the children and fully explain what to do and what not to do with their money. It is greatly important that you test the children during their early years and see how they cope with handling pocket money for example, therefore, any problems can be rectified before it is large amounts of money they are dealing with.
Although I think it is important to be taught in schools, sadly, I feel that it is just impossible. The education system is stretched as it is and there simply isn’t enough time or resources to accommodate it.
It looks like all of the educating will have to come from the home!
Debt and money in general is a funny thing. Most people feel incredibly embarrassed about their financial affairs, even when they are solvent. Admitting that you are in debt to a partner of loved one can be particularly traumatic. It often makes the individual in debt feel that they have somehow failed, even when their partner may be part of the reason that they are in debt.
Debt inevitably causes stress. When money is tight, it is not possible to fall back on treats to deal with the annoyances felt on a day to day basis. One of the best ways to deal with this stress is through completely honest and open communication. Sit down and work out a complete budget with all income and outgoings listed. Resist the temptation to think that your partners treats aren’t important, any spare cash should be allocated fairly and with mutual consent or the resentment will soon build up!
Now is not the time to apportion blame, communicate openly and you will soon be debt (or at least stress) free.
Never lied about my debt to my partner but to my parents? then I would have to say yes.
The main reason for this is not wishing to disappoint them or to make them worry.
It is very important that my parents think I am doing well, and I can understand where they are coming from, as no doubt they will have been through it all as well.
I think its a learning process, something you go through on the road to financial security, if you dont, then you will miss a couple life lessons and probably make bigger mistakes based on these later in life.
No doubt when I am a parent myself, I too will be worried about what my children are up to regards their money, and I too will wish to help them where ever I can.
Sometimes it would just be easier to let it all out and confess. It depends on the type of person you are i guess. I prefer to keep these matters private and to myself, others may like to share there problems with friends and family. There are benefits and downsides to each method. But in the end its up to you, and as long as you have it under control then it doesnt matter if you tell or not.
Although my partner and I have always been open with each other as far as debt is concerned. However, a few years ago a colleague of my partner’s got into serious debt and although he shared his worries with a few people, my husband among them, he did not feel able to tell his wife. The people he confided in all advised him to tell his wife everything and to seek help with his debts. Instead of taking this advice, he worked longer hours and took on a second debt to try and meet all his financial obligations without his family having to realise he was in difficulties.
Sadly, after a few months of this, he took his own life. Leaving his wife, family and friends devastated. The tragedy is that although his partner would probably have been shocked to learn of his financial problems, no doubt after the news had sunk in, she would gladly have helped him sort everything out.
Although he only wanted to shield his family from unpleasantness, this poor man got himself into such a state that he was unable to think clearly and because of that, ended up hurting them badly – the last thing he ever wanted to do. So if you are in financial difficulties, please steel yourself and tell your partner, coming clean is difficult but much better than being found out or something even worse.