Stuart Fleming

The Money Mindset Mob spoke with a concerned parent recently who made this statement:

“Our son is hopeless at managing money and I fear he’s going to just spend his loan and overdraft and we’ll end up having to bail him out.”

What to do if your parents think you are financially hopeless

…according to Scaredy-Cat Pat

My parents don’t think I’m financially illiterate - they KNOW I am. And I have to agree with them.

I lose $20 notes from my purse, so I’m nervous about how much trouble I’ll get in to when I take out a student loan. What’s the difference between a loan and an overdraft anyway? I’m not even sure…

Maybe I shouldn’t be thinking about university at all because if I mess up the loan or can’t find a part-time job during the year Mum and Dad aren’t going to be able to bail me out - they can’t afford to do that.

I wish I could talk to my folks about money like Spike suggested, but that only leads to arguments. Best I just keep quiet and hope for the best.

Perhaps the university has a financial literacy advisor I could talk to instead…?

Scaredy-cat Pat

One of the Money Mindset Mob - helping teens get their head around money

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Financial education is a waste of time

A whole day spent listening to experts on financial literacy and money education.

Was I mad?

Apparently so! I was at Financial Literacy 09 in Wellington, a one-day summit put on by the NZ Retirement Commission and attended by 200 Suits. Yup, The Suits from banks, financial institutions and government ministries all hoping the speakers would either a) pat them on the back for doing a good job in the face of global economic meltdown, or b) identify a niche they had missed and could profit from.

Or maybe c) they were truly interested in improving the nation’s financial literacy. The jury is still out…

Minister of Finance the Hon. Bill English got the ball rolling, explaining how The Suits mustn’t assume the public are ignorant or wrong when it comes to their own personal finances: people make decisions based on the information/experience/beliefs they have at the time.

He cautioned how the government implies “We will look after you” (in regards health, education, retirement, etc) yet in the same breath insists “You must save more.” How confusing is that for Joe Average?

In sharing her research from around the globe, Dr Annamaria Lusardi (Professor of Economics at Dartmouth College, USA) highlighted the gap between financial confidence and ability. Basically, people think they are money-clever, but aren’t.
Continue reading Financial education is a waste of time

The Money Mindset Mob heard from a concerned parent recently who made this statement:

“Our son is hopeless at managing money and I fear he’s going to just spend his loan and overdraft and we’ll end up having to bail him out.”

What to do if your parents think you are financially hopeless

…according to Splurger Spike

Hi! Spike here. I get first crack at this statement since this is exactly what my parents say. Seems I’m not the only teen around who displays classic ’splurger’ money traits! Nice to know I’m not alone…

Four things to bear in mind about people like me:

• I love spending money. It gives me a real kick to have fun and enjoy my cash. If I’ve got money (or access to a loan or credit), I’ll make full use of it - today!
• The concept of putting money aside for later doesn’t naturally register with me. Budgets are boring.
• When someone (especially a parent) tries to restrict my spending, it upsets me - I feel resentful and will fight it.
• Only when my financial goals are emotional enough (creating desire instead of the mundane ’saving’ option) can I begin to see how my daily money actions affect my future.

“Hopeless at managing money” is a classic statement from someone who doesn’t understand the workings of a different Money Mindset. It drives me spare! I have to take a deep breath, refrain from biting scathing sarcasm and tell myself that my folks simply don’t appreciate the kick I get from spending.

So if your parents think you are hopeless, here are 6 ways to give them confidence you know what you’re doing with your money:
Continue reading What to do if your parents think you are financially hopeless - Splurger Spike

20-somethings talk about money and goals

I spent an afternoon in the weekend with some 20-something student friends of mine. The topic of my current Money Survey (for 12-29 year olds) came up.

We talked about what they had learned at school about personal finance.

Very little. The subjects of accounting and economics always had a business focus. It is not mandatory for NZ schools to teach financial literacy.

Only a small portion of the prepared national Unit Standards for personal financial literacy have been approved. I would have thought approving the rest would be a Code Red High Priority within the Ministry of Education and NZ Qualifications Authority? Seems not.

We talked about when financial literacy should be taught.

They revealed it wasn’t until they left home (or had to start managing tertiary student loans and allowances) that they started taking their money responsibilities seriously.

So even if schools are instructed to teach Money 101, will teens actually learn?

We talked about the financial literacy support they receive from their university.
Continue reading 20-somethings talk about money and goals