Author: admin

Recently I was reading Chad Willardson’s “Smart, not spoiled” and he mentioned that parents are more comfortable talking to their children about sex, drugs, and alcohol than they are talking about money. I was very surprised to hear this but the more I reflected on it, the more I thought it to be true. I can understand why that is the case. Parents and guardians often find themselves reluctant to broach the topic of money with their children for a myriad of reasons. The taboo surrounding financial discussions, coupled with personal insecurities about their own money management skills can leave parents feeling ill equipped to impart sound financial wisdom. Fear of burdening their children with worries about money or unintentionally instilling a sense of entitlement also plays a role in their reluctance. Additionally, the complexity of financial topics and the fear of sparking anxiety or confusion in their young ones further exacerbate parents’ hesitance to dive into this crucial aspect of life.

The irony of this is that by not talking about it, we are still teaching them about money subconsciously by our own money habits which could be disastrous if our own habits are not the best. Also, if you don’t teach your kids about money, someone else will. So, wouldn’t you rather they learn from you? It is important for your kids to understand your family’s money values before they go out into the big bad world of credit cards, car loans etc. A good time to start teaching kids about money is as early as possible. Introducing basic concepts such as saving, spending, and the value of money through age-appropriate activities and discussions can lay a strong foundation for financial literacy.

Starting early allows children to develop healthy money habits and a positive mindset towards financial responsibility from a young age. By incorporating money lessons in everyday activities and gradually increasing the complexity of financial concepts as they grow older, parents can help their children build a solid understanding of money management. As parents, we play a crucial role in shaping our children’s financial habits and attitudes towards money.

Explaining everyday household bills to children is a powerful way to teach them about financial literacy. By involving children in discussions about utility bills, rent or mortgage payments, grocery expenses and other household costs, parents can provide real-life examples of how money is earned, budgeted and spent within the family. Breaking down these bills and explaining the importance of paying them on time can help children understand the value of money, the concept of financial obligations and the impact of budgeting on overall financial well-being.

Another fundamental aspect of teaching kids about money is the relationship between work and income. Understanding that money is typically earned through work is a valuable lesson that can set a strong foundation for their financial future.

When it comes to instilling this lesson, many parents grapple with the decision of whether to give their children pocket money or to tie it to chores. While both approaches have their merits, finding a balance between the two can be key. Giving pocket money can help children learn how to manage their finances independently, while linking it chores teaches them the value of hard work and responsibility.

Caught not taught.

However, the best lesson we can impart to our children is to practice what we preach. In the hustle and bustle of daily life, it’s easy to forget that little eyes are always watching. Children are keen observers and they often learn more from our actions than our words. From the way we handle money to the way we tackle challenges, our children are soaking up more than we realise. As parents, guardians and mentors, it’s vital to recognise the powerful impact our actions have on shaping the habits and behaviours of the next generation.

Financial literacy isn’t just about budgets and bank accounts – it’s about instilling values that will guide our children to make smart financial decisions throughout their lives. Think about it: when your child sees you carefully budgeting for groceries, saving for a rainy day or even splurging on that well deserved treat after a job, they are learning valuable lessons about money management without you ever uttering a word.

We often hear the phrase “actions speak louder than words,” and when it comes to teaching children about finances, this couldn’t be more accurate. Our behaviours around money, work and spending are like a living, breathing script that our children are tuned into 24/7. Whether we like it or not, our children are absorbing and internalising these lessons, which will inevitably influence how they approach money in the future.

Children are like sponges, absorbing everything in their environment. They pick up on subtle cues, unconscious habits, and repeated behaviours, shaping their understanding of the world around them. So, the next time you reach for your wallet, remember that your child might be taking mental notes on how you handle that transaction.

Financial habits are just the tip of the iceberg. Children learn a plethora of life skills by observing the adults in their lives. From resilience in the face of challenges to kindness in everyday interactions, our behaviours set the stage for kind of adults our children will become.

As much as we love to shield our children from life’s challenges, fostering independence is crucial for their growth. By modelling independence in our own lives – whether by balancing work and personal time or making decisions confidently – we empower our children to develop the skills they need to navigate the complexities of adulthood.

Caught not taught is not just a catchy phrase – it’s a powerful reminder of the influence we have on the young minds around us. By being mindful of our actions, leading by example, and fostering independence, we can equip our children with the tools they need to thrive in an increasingly complex world.

As you navigate the treacherous waters of teaching your kids about money, remember the journey is just as valuable as the destination. Don’t take yourselves too seriously but still stick to your values. There will be arguments, tantrums, wins and learnings (I prefer learnings to failures). Embrace it all and above all cherish the moments of financial enlightenment that will shape your little ones into savvy savers and wise spenders. Who knows, one day they might return the favour and teach you a thing or two about cryptocurrencies or the latest TikTok financial trend. Happy educating, fellow finance aficionados!

So, this week my eldest child turns 12. There are so many things I would like to teach her that will save her years of heartache, make her better person (she’s already perfect in my eyes though) and hopefully shelter her from some of the mistakes I made. But I know a lot of this will not make sense to her until she is much older. But I thought I would give it a go anyway. In a way, I wish that someone had told me these things myself.

My dearest heartbeat

As I sit here in denial of the fact that you’re only a year from being a teenager, I have so many dreams for you and hope you realise all of your own. But my greatest wish for you, aside from good health and happiness, is that you are financially independent. I sit here dreaming of the day you’ll own your own yacht and travel the world. On a more serious note, there are a few things I wish you will learn about money that will make your life a lot easier. You see, money isn’t just about fancy cars and designer clothes. It’s about discipline, responsibility and making smart choices. So lean in and listen up because I’m about to drop some financial wisdom that will save you from a few grey hairs and sleepless nights.

First things first, let’s talk about the magical world of compound interest. No, it’s not a Harry Porter spell, but it does have some serious magic powers. Here’s the deal: the earlier you start saving and investing, the more magical your money becomes. Imagine a snowball rolling down a hill, getting bigger and bigger with each turn. That’s compound interest in a nutshell. So, open that savings account, invest in those shares and watch your money grow like Jack’s beanstalk.

Now let’s address the spending habits. I know how tempting it is to blow all your birthday money on the latest video game console or that trending pair of sneakers. But here’s the truth, instant gratification is like a sneaky little monster that will haunt you in the long run. Instead, learn the art of delayed gratification. Save up for that big ticket item, and trust me, the satisfaction will be ten times sweeter.

Here’s a little secret about credit cards: they’re not free money. Repeat after me:”Credit cards are not free money.” They’re more like a ticking time bomb waiting to explode in your face if you’re not careful. So, when you get that shiny plastic card in the mail, treat it like a delicate unicorn egg. Use it wisely, pay off the balance in full every month. I don’t think you even need it to be honest. It could ruin your credit report.

Oh, speaking of credit report, this little report can make or break your financial future. Your credit report is like a financial report card and simply put the higher the score, the better your financial life. So, pay those bills on time, keep your credit card balances low and avoid taking out unnecessary loans and those silly buy now pay later schemes. Your future self will thank you for it.

Now, let’s dive into the world of budgeting. I know, it sounds about as fun as watching paint dry, but trust me, it’s a game changer. Create a budget and stick to it like your life depends on it (spoiler alert: it kind of does). Track your spending, cut back on unnecessary expenses and watch your bank account breathe a sigh of relief. It’s like giving your money a spa day, and who doesn’t love a relaxed pampered bank account?

Investing. It’s like the Avengers of the financial world, only way cooler. Start early, diversify your portfolio and watch your money work for you while you sip your favourite drink on a beach somewhere. Okay maybe not that dramatic, but you get the picture. The key is to let your money hustle for you, so you can live your best life without the need for a “rich uncle” inheritance plan. Fun fact. Warren Buffett created 99% of his wealth after his 50th birthday. Who is Warren Buffett you ask, just a 94-year-old investor with a net worth of more than US$134 billion. His superpower is really time if you ask me(and choosing the right stocks but that is a story for another day). He started investing at the age of 11 years old. So, remember that snowball we talked about earlier. Yeah, Warren Buffet’s at US$134 billion. And your snowball can get there too or surpass that.

Let’s not forget the golden rule of “living within your means”. It’s a simple concept really. Don’t spend more than you earn. If your eyes are bigger than your wallet, you’ll end up drowning in debt faster that you can say “financial freedom”. So, resist the urge to keep up with the Kardashians (or the lates TikTok trend) and focus on building a solid financial foundation for your future self.

Lastly, let’s talk about the power of giving. No, I’m not turning into a Zen philosopher on you, but giving back is truly a game-changer. It’s not just about giving a little bit to charity (although that is ok too). It’s about paying it forward, helping others, and making a positive impact in the world. Trust me, there’s no greater feeling than knowing you’ve made a difference in someone else’s life.

So, there you have it my love. A crash course in financial literacy that will save you from a few financial fiascos, heart palpitations and sleepless nights. Remember, money isn’t the end goal; it’s the tool that can open doors, create opportunities, and pave the way for a brighter future.

Here’s to making wise financial choices and living the life of your dreams.

A lot of people think that Financial independence is only for people with very high incomes. I don’t agree. I think it all comes down to one skill. The skill of deciding not to buy even when you do have the money.

It has been almost 6 months since I started my “career break” to focus on being mum again. This time my children are 11 and 7 so at least there are no nappies to change and I am getting a full night’s sleep. This decision was not easy, in fact it probably was one of the hardest decisions I had to make in a long time. I am sure a lot of my peers thought I was insane to make such a decision with the everything that was going in economically around us. My career was pretty much a huge part of my identity. I was “the” banker and my kids and husband would proudly tell everyone how mum/my wife is a banker. But much as I enjoyed my job, I realised (which if you are a serial reflector like myself) that my time on earth is finite. I know, I know a very sad thought but the good thing about realising this is that you make decisions accordingly to try and minimise those later regrets. So I took the plunge and gave up my high heels, slacks and blouses and swapped them for sneakers and active wear (which is code for comfortable mom clothes around the house everyday). A lot of preparation went into getting ready for the career break to a point where I was comfortable with stepping away from life as I knew it.

With inflation, high interest rates and everything else going on, the idea of taking a career break to spend more time with family seemed like a distant dream and I can understand why. There are mortgages to pay, household expenses and everything else that comes with adulting. However, for many, it’s a transformative decision that requires careful planning, financial discipline and a shift in priorities. In this blog post, I will share my personal journey of how saving, spending less and prioritising experiences over material things enabled me to take a 12 month unpaid career break to savour precious moment with my family.

Embracing financial discipline

The first step in achieving this dream was to embrace financial discipline. I diligently tracked my expenses, cut back on non-essential purchases and set a clear savings goal for my career break. By creating a detailed budget and sticking to it, I was able to contribute consistently to my career break fund. This required saying no to impulse buys and evaluating every purchase in light of my long term goal. That meant saying no that that really cute pair of high heels which I will most likely never wear because they are uncomfortable but I might have that one occasion that I might wear them to. It wasn’t always easy but the vision of being able to create meaning memories with my family kept me focused.

Shifting Priorities: Experiences over things

As my commitment to saving strengthened, so did my perspective on the value of experiences versus material possessions. I began to prioritize activities and experiences that enriched my life and created lasting memories over accumulating more “stuff”. Instead of shopping for items I didn’t truly need, I invested in family outings, travel, and quality time with loved ones. This shift in priorities not only brought immense joy and fulfillment but also contributed to my fund. Ramit Sethi, in his Netflix Series “How to get rich” talks about defining your rich life. If you asked a lot of people why they want to be rich they will tell you the usual cliché, “to do what I want when I want”. If you dug deeper and asked what that meant though most people wouldn’t have a clue. What I wanted to do was to take my children to school in the morning and pick them up myself. Have an afternoon snack and go for a walk at 4pm. Clarity is the key here.

Learning the Art of Frugal living

The concept of spending less was integral to my journey. I adopted a frugal lifestyle without compromising on quality of life. This meant finding creative ways to cut costs, such as meal planning, utilizing rewards programs for travel and exploring affordable entertainment options. Netflix date night was one of my favourite things to do. My husband and I watched all 10 seasons of Friends again and we only just finished it last month. Now our new show is The Blacklist and we look forward to that bonding time. I also understand how funny the Dogman series is which is something my son and I have bonded over, and my daughter keeps challenging me with some amazing free brain test apps. By making intentional choices to spend less, I was able to redirect more resources towards preparing for my career break.

Investing in Family Time

Ultimately, the driving force behind my decision to take a career break was the desire to invest in precious family time. As the financial pieces fell into place, I wholeheartedly embraced the opportunity to prioritise family. I savoured the everyday moments like walking to school with my son, planned special activities and nurtured deeper connections with my loved ones. This period of togetherness became an invaluable investment in our relationships, creating enduring bonds and cherished memories that no material possession could ever replace.

Overcoming challenges and staying committed

The path to this goal was not without its challenges. There were moments of doubt and temptation to derail from my disciplined financial plan. However, I remained steadfast in my commitment, drawing strength from the vision of meaningful experiences that awaited us and seeing my bank balance grow. This process was in the works for about 12 months and by the time I got to the end, we were almost at the stage where we were living on one income. We realised we could survive on so much less which gave me the courage to put more into my savings. Over time, I became more resourceful, creative and appreciative of the journey itself knowing that the destination was well worth the sacrifice.

Celebration and Reflection

When the day finally arrived to embark on this new chapter, it was a moment of triumph and reflection. The months of financial discipline and embracing frugality had led to this transformative chapter in my life. The joy of being fully present with my family, of witnessing milestones and sharing laughter without the constraints of work obligations, was a testament to the power of intentional living and mindful choices. Looking back on the journey, I realised that the true wealth lay in the abundance of shared experiences, the depth of connections and the newfound perspective of what truly matters in life.

A New Chapter: Lessons Learned and Future outlook

In the last six months, I have managed to emerge with a renewed sense of purpose and a treasure trove of memories. The experiences, insights and lessons learnt during this period continue to guide my priorities and decisions. I have cultivated a deeper appreciation for the simple joys of life, the significance of quality time with loved ones and the enduring value of intentional living. Moving forward, I am committed to maintaining this mindset, finding the balance between work and family and cherishing every opportunity to create meaningful experiences.

This got me thinking, how do I pass this on to my children. How do I teach them to shift their perspective? How do you teach financial discipline? My dream is to share this wisdom as well as lessons I have learnt in my career and a banker to help the next generation realise their dreams through financial discipline, a shift in priorities, maybe even frugal living and deep commitment to family and community. Join me in this journey in the pursuit of a life well-lived.