The Week That Was
Hey all, hope you are having a good year so far. We are almost done with the first month of 2024. The time is flying right now, and we are almost into February the month of love.
Let’s do a quick recap of my week. I just transitioned to a new home loan to the realities of new Australia. Much like many Australians, we are now paying mortgages at the highest rates since 1990. We have restructured our finances and are planning to make the most of our offset account to keep our interest payment to a minimum. We believe we are relatively comfortable right to make the required payments, as we were well prepared for this increase.
While working on our finances I realize how I have learned most about managing finances such late in life.
This was the inspiration for a blog and this newsletter on how money is a taboo we do not discuss without kids, but we really should.
So let’s move on to know my views on the subject.
Start Talking Money With Kids
Born and brought up in India in a middle-class family we hardly used to discuss money at home when I was a kid.
My father used to work hard in his 9 to 5 job, and at the same time was consistently investing in properties, stock, and FD. We had a comfortable life, not too rich, but not poor either.
I would consider my father’s journey a true rags-to-riches story. My elder siblings were part of the rags phase. I joined somewhere in the middle. Dad had always been smart with money, his assets across India are a testament to the same.
I do remember as a kid some of my wants were not being fulfilled, but none of my needs were ever ignored. All but one.
Money Talks - As a Kid
As a kid we often used to ask our parents for certain something, but at no point were we told we could not afford it. We were always told we did not need it.
Now at 37, I realize the difference. I think parents back then used to feel kids need not know about money. I cannot say about the rest of the world, but in India, money is a taboo topic.
People loved money but preferred not disclosing how much they had and from where. Much like today, only those who are financially related to you knew these details.
Parents thought discussing money with kids may lead to kids blabbering their secrets out in public. And then there was superstition about an evil eye effect. This belief stems from the fact anyone who is doing fairly well compared to others can attract the envy of those around them. This envy could lead to your fall.
Now this did make sense when kids were under 7(not the superstition but the blabbering part), but once older I am sure they can be taught what can or cannot be shared outside.
Unfortunately, our parents thought otherwise, this may be because it just became a habit. Money only became a topic of discussion much later in life.
For the current generation access to information is way easier, but it was not so 15 years ago. I lost my 20s saving but not investing since I thought money saved was money earned.
I will not make the same mistake, and neither will my little one.
Money Talks - As a Parent
My wife was also brought up in a similar environment. Money was considered to be the root of all evil in her household too, and so a taboo topic. She is still not comfortable talking about money. I can see it in her eyes.
For her relationships trump money. I am not arguing against it, but the practical discussions about money should be done with the brain, not the heart. She would easily part from her money if she saw someone in need of it. I would try to find out why the person got into this situation, teach a man to fish, and all that.
So I have decided, my little one will know about money management from an early age. Depending on how soon she grasps this, we would also involve her in the financial decisions our family makes.
There are plenty of books that can guide you and your little one on this journey.
Berenstain Bears’ Dollars And Sense is a highly-rated book on finance for kids 3 to 7 for just $6.
The Four Money Bears targets the same age group.
In Australia we have an amazing writer on personal finance called Scott Pape his book Barefoot Investor is one of the best books I have read about personal finance. He also wrote a book for kids called Barefoot Kids, which is also a must-buy.
Luckily we are living in a time where we have sufficient guidance available to sensibly teach our kids the value of money, and money management.
I think no age is too young to learn about money.
Why It Matters To Me?
I still regret not being money-smart in my twenties. When I read stories by young Medium writers like Donovan Michel and Eduard Nicoara, who have their goals sorted regarding their relationship with money, I feel happy but also a bit jealous(in a good way). Jealous that I was not smart enough back then, but happy that this generation is better exposed to the realities of finance and money management. This is why I make sure I am there to encourage them on every story they post, or tweet I come across.
This is the knowledge I want to impart to Skylar. I think knowing about money at a young age does make a stronger independent individual.
Money is not life, but just a part of it. But the fact remains it is a very important part of life.
Conclusion
The money you earn, save, or invest today is going to sow seeds of a prosperous future. I want my little one to know all the ethical ways of earning money. I also want her to know the importance of sharing and helping others who are in financial trouble.
When used correctly money can be a source of all good in the world.
Money is not a taboo but a very important part of life.
So let's talk about money with our kids, because if we won’t who would?
Do let me know how was your relationship with money as a kid.
Is the no-money talk attitude a cultural thing?
Would love to know your view on this topic.
To know more about gaining financial independence in today’s world check the below blog out. Findependence with Jijo is a look at some money management tips I follow in my life. It talks about offset accounts, side incomes, and other tips on being financially independent, and is being consistently updated with new ideas.
If this is of interest then do check it out by clicking the image below.
Hope you liked this week’s newsletter and it helped you. I need to increase my audience for a greater reach, can you please be kind and share this post with a wider network of your friends for whom you think this might be helpful? Your support means a lot.
Hope you have a great year ahead.
See you again next week.
Till then
Jijo George