Waiheke Marketplace : August 29th 2012
www.waihekemarketplace.co.nz 20 WAIHEKE MARKETPLACE, AUGUST 29, 2012 307 6340 NEW LISTING Good money habits start early By ALLISTAR WALKER The Olympics showcase excellence with the over- whelming theme of working harder, going through the tears and heartbreak having an inspiring objective top of mind. I now have a couple of grandchildren and another couple baking. As a financial adviser, my thoughts turn to how can we make sure that productive attitudes and fin- ancial habits are embedded early in their young un- templated brains. The principles and skills to be worthy, productive and prudent citizens are started so early. As a parent I can't remem- ber the things I seem to notice now as a grandparent. Things like, how quick they learn in their very early years, what they remember and how the habits they develop are moulded so much by the parents and those other influences around them such as family, friends and day-care. Parents with a negative, uncaring or uneducational focus, invariably convey that to their offspring. Conversely parents and close centres of influence that surround their kids with plenty of toys, books, photos, love and learning experi- ences, invariably produce bet- ter balanced kids who grow into worthwhile citizens. As with Olympic medalling, the hard work early on pays off. However, a key issue dis- turbs me in the raising of children and it is borne from statistics that characterise the general population. According to these, only 20 per cent of people write down their dreams and goals, moni- tor them and adjust their plans in writing as need be. Hence only 20 per cent of people retire financially inde- pendent of any other form of support -- the kids are not the superannuation plan. If we follow this argument through, how will 80 per cent of parents ever encourage kids to goal set and become aware of the value of money and subsequently the means to the achievement of much in life. I have heard people say, money is not important'. Well, try telling the super- market operator that, or your boss who presumably will be free to pay you less. Kids must be encouraged to save from a very early age, even if they save up objects to achieve a certain purpose. It can be made fun -- consider incentives and rewards -- so they can relate the effort' or the restraint' to the achieve- ment. Whether it is money or training to be an Olympic athlete, you must put in before you can take out. The more the training or saving the more the reward. It is easy to spoil the little darlings, but spoilt darlings can become untamed mon- sters. Use everyday encoun- ters for learning about money, explain interest on savings and on debt. By going to www.sorted.org .nz there are many profile quizzes for the kids. You can find out whether they have a spend or save profile. There's a quiz there for you too, if you dare take it. A word of warning; chil- dren mostly follow in the foot- steps of their parents learn- ing habits from them. If you make rules with your kids stick to them, if you have to be cruel to be kind, do it with love and that doesn't mean rough physical stuff. Make sure you show the kids how you budget and the good habits you have devel- oped to get what you want. Maybe that is putting the acid on 80 per cent of the population, but we all want a brighter and better future, don't we? We supply information for goal-setting and developing your own lifestyle plans. You can also visit www.sorted.org .nz, look at the section Kids and Money', and if your kids are old enough they can navi- gate it also. We are in the process of putting together financial learning material for chil- dren. Readers thoughts on what they have found useful or would like to see in such material would be welcomed. Care has been taken to ensure that any information is accurate. No liability is accepted for its use. Experienced in business lending and risk (insurance) advice, Allistar Walker is a Registered Financial Adviser and Senior Fellow of Financial Services Institute of Austra- lasia. His full disclosure is available free at www.mort gagehelp.co.nz or he can be contacted at 410 6023 and email@example.com.
August 22nd 2012
September 5th 2012