If your child asked how much money you earm do you tell them?
Well not being on a salary mine is always hard to define. I would tell them the truth.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
hi bwendan
depends your structure its a little bit difficult to explain an income when you are using debt, leveraging, cash flow, developing and other structures
but they understand to there level and as they progress they understand more.
some structures are very difficult to understand for an accountant that is not in that field so how do you think you can expalin that.I don’t want to sound nit picky put when I explain part of my structure to 45 year olds they throw there hands up with its all to hard.
so do you tell your children.
the answer is no.
Do you educate your children the answer is yes.
as for how much money you earn that is subjective.
depending on the goals and what is required at that point in time.
business is not an area that you earn this amount ?`
you teach your children not about money but the use of money.
my 002 worthhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]I think I would tell them, but back that up by telling them that its really irrelevant anyway because WEALTH does not always have a direct relationship with INCOME – lest see if that pricks their interest!
I remember as a school girl hmmm just a few years ago, I would be sent to school with my Commonwealth Bank book and a small sum to deposit every week and get the offical stamp.
I learnt the value of money and how to put money aside for the things I wanted. Shame those lessons are not learnt still [blush2].
I agree that education about finance wealth creation should be taught in schools from an early age.
Good luck
Jenny1
Depends how old it is!
As you can see, by saying “it”, I dont have one! However I do remember how much stuff kids say in Primary and even high school.
They probably dont need to know till Uni!
I see my children as being stakeholders in the family enterprises and as such I try to treat them as equal as they have the capacity to understand and/or carry.
I am not such a private person that I worry about their friends and friends families knowing my business. Is all good as far as I am concerned.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I think it’s okay to talk about money etc in an open fashion with the kids. It shouldn’t be something that’s considered ‘taboo’ and keeps the lines of communication open. Although they may not understand everything fully, I think being honest and upfront is the best way.
ShellbyI try to teach my kids how to make it rather than how much?
If they know that I think it is half the battle won
CATA
Asset Protection Specialist
[email protected]we don’t hold any secrets from our kids. We even show them the houses we buy and tell them that other people pay us money to live there! Or that we build houses that sell them to other people.
It gets embarassing when we go visiting and our 3 year old asks if we own this house!
We buy properties in Adelaide. No Agent Fees.
[email protected]
phone 0412 437 582My dad kept it a secret and I got told at one stage ( a few years ago) what he was earning but not so much since.
I’m 18 and moved out 6 months ago and I’d recommend all parents try to involve their kids in finances, including how much they earn. It prepares us for independence and good financial management skills to see where the money is going, to see the standard of living that comes with a certain pay bracket (especially if living at a lower standard than you could due to investing a lot of money into property or shares)
I can understand its a personal thing but hey, I’ve been able to find out what people earn by looking at company/industry websites.
Once of the best finance education experiences I’ve had is when I asked one of my teachers about salary packaging. Most teachers don’t like to discuss money, but this one reached into his wallet and pulled out his paycheck and just explained everything to me. That was far more beneficial than just reading the information online, as not many people would discuss it. My dad was unable to show me the spreadsheet he’d worked out as it divulged his income.
But a warning: kids can have contests to see whose parents are better and this could mean your childs friends could pass on information to their parents, something you may be uncomfortable with. Its all dependent on age, maturity, and how much you want to keep private, really.
I think id have to agree with all who said they’re kids should know “HOW” you get it, not just “how much”.
I think too many kids are taught from an early age that income earned from your job is everything: the more you earn the better your life is. I think most of us realise that’s not the case, however most of my life ive grown up with that assumption in my head and was very lucky that i stumbled across the right form of reading material which made me change my mind [biggrin]
We have involved our eldest daughter (4) in our property investing so far. As we self manage, she comes with us to see new tenants, clean IPs, do minor maintenance and she now understands that these people are helping to pay for mum to quit work and spend more time with her and little sis (ie buying lifestyle). She is really good at spotting For Sale signs in yards as we do the rounds. (Also a great way to keep her content too
I would like to think that we will continue her education in all aspects of money, incoming and outgoing.
Cheers
Lisa
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