November 24, 2024 • 40 mins
The most crucial time to teach your children about money is when they get their first jobs.
Teaching good habits around money can be difficult - even more so if you weren't taught it yourself.
Lisa Dudson joins to discuss different ways you can teach children how to deal with money.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks Money.
Speaker 2 (00:13):
I lived.
Speaker 3 (00:16):
With your party, they were your friends. See you've got
a nice new car and a brand new player of pants.
Speaker 2 (00:32):
Yes, welcome back. This is the Weekend Collective. I'm Tim
Beverage and this is Smart Money. By the way, I
do just have a little hangover mentioned. I need to
mention from the health up just because I was chatting
with John because we did need to, we didn't intend to,
and then we just got carried away with all the
with all the calls we had, just reiterating the importance
(00:53):
of people of John wanted me to pass some as
we'll do it now about the importance of getting your
kids getting vaccinated. Sorry for whooping cough, because it isn't
generally pretty preventable, and also just the low vaccination rates
for things like HPV, which is you know, it's a
vaccination which can prevent cancer. So please check with your
doctor whether you are up to date with your vaccines
(01:16):
or whether your children are up to date as well.
Because of course, the weapon cough epidemic is upon us
and it's completely unnecessary, but we've got to do something
about it anyway. So there we go. That was just
something I'd promised John I would mention at the start
of this hour. And if you missed any of the conversation,
check out our podcast look for the Weekend Collective on
News Talk Seed B or on iHeartRadio. But now, excuse me,
(01:38):
a bit of a fly, a fly in the throat.
Hang on. My guest is for Smart Money is she's
a personal wealth educator at Acumen, and it's Lisa Dudson.
Speaker 4 (01:51):
Lisa, how are you you?
Speaker 2 (01:53):
Excellent? Good, good good. I'll just get you a nudge
a little closer to your mic. There. We're going to
talk about kids and financial lessons that they need to learn,
because I think sometimes kids can learn the wrong lessons
by just assuming that money grows on trees, or they
don't necessarily learn the lessons that perhaps their parents should
(02:16):
have learned, or maybe that they did learn and went
passed on. Are there some simple things that we should
teach our kids when it comes to money?
Speaker 5 (02:25):
Oh, well, of course, And I think you know all
those things that you mentioned can apply. So I mean,
I'm a big believer about teaching kids early in life
about money. It certainly creates a lot less stress for you.
As a parent, if you can teach your kids some
great money habits. And I think it's just trying to
think about the really practical things that you can teach
(02:46):
them because I think sometimes parents say, oh, you know,
my kids think that money comes out of a hole
in the wall, and you go, well, hold on a minute.
If they're seeing you go to the ATM machine, maybe
we don't do that quite as much as what we
used to do. Then they probably do see that money
comes out of a hole in the wall.
Speaker 2 (03:00):
Right, Well, what they see it's even worse. I think
it's worse now because us what they see as we
just hand out the tastic and this magic thing happens, yeah,
tapping here, and in fact it's a lesson we don't
learn ourselves because we're not handing over ten, twenty, thirty, forty,
fifty sixty. We just go big yep.
Speaker 5 (03:18):
And interestingly, there is quite a bit of research that
shows that if you use cash, you spend about twenty
percent less than if you tap or use credit, so
that's quite a significant amount of money. So I think
it's all about awareness and it's teaching kids the value
of money. So it's probably you know, linking things like
there may be some doing some work around the house
(03:40):
and giving them pocket money and then going okay, well,
if you want to buy something, how much pocket money
do you need? How many hours do you need to work,
and trying to do a bit of an exercise to
work out that if you do this, then you get that,
then you can make choices about how to spend your money.
Speaker 2 (03:55):
Because probably that so the first lesson has actually the
fundamental one of teaching them what is the value of money,
because if they just think it's something they get given
by grandma and granddad at Christmas or something, or well
maybe if they don't get given very much, they maybe
appreciate the value of it. But just learning this is
(04:16):
how much ten dollars is, this is how long you
have to work for this, or one hundred dollars as
the many hours work you have to do, this is
the tax you parn it, and so this is what
it's worth.
Speaker 5 (04:27):
Yeah, And I think it's having conversations too, because I
think money is the topic that is the least favorite
for most people to talk about. So I think, you know,
if more families talked about money, then it wouldn't be
such a to be subject and if you talked about
it more with your family, you're probably talked about it
more with your friends. I think that's a really important
thing for us to have much more open, freer conversations
(04:49):
about money. And I think that starts at a young age.
Speaker 2 (04:52):
Because some kids actually learn the lessons about money because
they don't want to be in the circumstances that their
parents might have been as well. Though they see that
mum and dad always struggled, and I was determined not
to a lot of this. I think that's actually probably
one of the worries for successful wealthy parents. Parents is
to make sure that the way that they developed their
(05:15):
success is something their kids learn, rather than if their
success is delivered a comfortable life for their kids, then
sometimes the kids are the last ones to learn the
lessons that their parents did.
Speaker 4 (05:24):
That's right, and it comes from all angles.
Speaker 5 (05:26):
I mean, that's probably what created my wealth over all,
my determination to build my personal financial wealth. As my
parents were from a very blue collar background, they worked
super hard. They had a couple of jobs just to
make ends meet, and I thought, gosh, you know, like
that seems pretty tough, and I felt, in some ways
had a fantastic Hilder. But it was quite limiting in
(05:47):
some ways. And I also grew up in the era where,
you know, being a female, I was expected to go
and work for the government as a secretary and have
two point four kids in the white picket fence, and
the whole idea horrified me, you know, because all the
guys got the management condect, you know, jobs when I went,
you know, when I was at school, and so for me,
it was very much around, Okay, well I need that
financial independence so then I can do what I want
(06:09):
and not get trapped about not being you know, having
my own money. So that's what drove me to build
my financial wealth was just so I've got freedom of choice.
Speaker 2 (06:19):
Actually, how early do you think you became aware of
money or started learning a few things about it?
Speaker 4 (06:27):
For me, I was quite young.
Speaker 5 (06:28):
I mean I think, you know, there's there's some positives
that my parents were quite hard working, because you learn
how to work hard, so you know, that's that's super important.
But also too, I was given I think it was
about thirty dollars a month. It might have been, or
I currently remember it was that long ago. Now, a
certain amount of pocket money when I started high school
and I had to buy everything apart from my school uniforms.
Speaker 4 (06:48):
So yeah, and so.
Speaker 5 (06:50):
If I wanted to think more, then I had to
I had to work for it. And I actually had
three jobs when I was at high.
Speaker 2 (06:55):
School, and you had to buy everything, set your school
uniform and to let your close and you know, your
school supplies.
Speaker 4 (07:00):
School was covered.
Speaker 5 (07:02):
And but if I wanted you know, back then nomads
were were the fad and everyone you remember those, No, Ma,
sure you're a summer error to me, right, And so
I wanted those, I had to. I had to have
jobs to say pocket money to buy you know, those shoes.
If I wanted to go out with my friends and
go to McDonald's on the weekend, because that was probably
you know, back then there wasn't a lot of options
(07:22):
for enterdaement it will take away places. Then you know,
I had to work for it. So you know, there
were really really good lessons and lots of ways. But
sometimes I talk to lots of parents who go they
money was really tight when they grew up, and so
they don't want their kids to feel that money was
as tight, and so they're quite generous with their with
their kids with money. So that sometimes is a good thing,
(07:43):
but it also can backfire because kids don't learn the
value of money.
Speaker 2 (07:47):
And I guess if they think that, I guess if
they were aware that their parents are quite wealthy, that
maybe they're going to have a good head start and
they don't need to be so. I can't think of
the word when you are well, they're not worried about its. Well,
what's the word when you are when you are safe,
when you are financially focused and you're not spending? Oh yeah,
(08:08):
starts with P. There's a word that somebody's going to
send me the one. Okay, there's Impecunious? Is the word
when you're the other way around, isn't it?
Speaker 4 (08:16):
Have they even heard of that word?
Speaker 2 (08:20):
I want to just get my producer to check that
I'm using that careful correctly. But impecunious is when you're
a bit of a spend thrift. It's a little impecunious.
Oh God, there we go. There's a win for the day.
But we want your cause on this. What are the
lessons that well, there's two angles to this. Well of
the lessons you wish you had learned when you were younger.
But if you were to impart anything about money to
(08:43):
your grandkids, your kids, your nieces, nephews, whatever. What are
the lessons do you think it's really important for them
to learn? And I think the first one that Lisa's
touched on is first is the basic one of just
learning what money is and the value of it. The
other one is, I wonder is impecunious is to have
little or no money? That's the one. I got that
(09:04):
one completely wrong, producers. Impecunious is not having much money?
Speaker 4 (09:08):
Do you know how to spell that?
Speaker 3 (09:09):
Yes?
Speaker 2 (09:09):
Yes, yes, yes, I completely no. That's why I confused
myself with the conversation penniless, poor and poverished. That's what
it means. How embarrassing that I didn't even know the
word I used impecunious. That's because you're okay, right, I'm
going to I'm gonna have to find the word that
I am searching for anyway. Sorry. Cumulative interest that's the
second one, I would, okay you second or third one?
(09:32):
Learning the power.
Speaker 4 (09:33):
Of compounding interests?
Speaker 2 (09:34):
Compounding interesting?
Speaker 4 (09:35):
Yeah, yeah.
Speaker 5 (09:35):
Albert Einstein talked about that as being the eighth wonder
of the world. And that's just simply about earning interest
on interest. So over time, your money grows in value,
and it grows both ways. If you've got debt and
you're paying interest, it grows, you know, from a negative perspective.
And that's why I keep you say, for instances, excuse me,
(09:56):
so powerful because it's the cumulative effect over time of
interest on interest, and it just grows over the long term,
so super important.
Speaker 2 (10:03):
I've only learned that sort of. I mean, I've always
known about a cumulative interests, but I haven't really been
particularly interested because as a musician, as an artist, just
s little of hand to mouth for far too many years.
But I did have to put money in when I
was in Australia into a retirement fund, you know, and
I think probably about fifteen hundred bucks went in. It's
quite some years ago, and it is worth at twenty
(10:26):
times that twenty to thirty t that's right.
Speaker 4 (10:28):
Yeah, it's quite somch I have the.
Speaker 2 (10:29):
Power of cumulative interest, which makes me wish i'd may
be stuck start a bit more back then. I think
we're loaded.
Speaker 4 (10:35):
Well, I think all of us would have had a
story like that.
Speaker 2 (10:38):
Well, that's one of the lessons you can teach your
kids though, because we've all got a what if story
haven't we Yeah, yeah, absolutely.
Speaker 5 (10:44):
And the other lesson that I have to have a
lot of my friends, who I guess are quite aware
of financially, that they teach their kids is that that
when they do receive any sort of pocket money or
gifts from family at Christmas or birthdays, is to break
it up into three category. So one is a percentage
that you're going to spend I spend today or on
the short term. One is an amount that you're going
to save, so maybe there's a family holiday and you
(11:06):
want to save up some money. And then the third
one is what percentage you're going to give to charity,
which I think some really interesting lessons.
Speaker 2 (11:13):
That is, so how would you impart that sense of,
you know, the benefit of given money to charity. What's
the lesson you want to teach your kids? It's just
about spreading it around. It's like manure, it doesn't do
any good, that's right, and that.
Speaker 5 (11:26):
There's people that are less fortunate that yourselves, and you know,
what goes around comes around, And I think all of
those lessons I think, but it's also giving you. If
I think about all the years that I've worked in
financial advice, the big thing is a lot of people
just aren't aware, you know, they do things by habit
and buy remote control. And so teaching your kids that
particular exercise, for instance, is really good because it makes
(11:47):
them away. It's making them think about when they get money,
how do they divide it up, and then thinking through
the decisions about what they want to do with their
money rather than just blowing it.
Speaker 2 (11:56):
By the way, I've found the text machine is lit
up with words to describe it, to describe being careful
with money, wasn't i? And there's a few interesting and
naughty suggestions, but prudent is one in the frugal was
the other one? All right, yeah, but I'm not sure
still the one I'm looking for. I was thinking in
terms of spending too much money. The word was profligate,
A profligate spender. That's when you're prolific. Yeah, you'll profligate. Okay,
(12:20):
that's another one. But anyway, I've had to correct myself,
and I'm pecunious. What are the lessons that you think kids'
children should learn about money?
Speaker 5 (12:28):
Oh?
Speaker 2 (12:28):
Eight hundred and eighty ten eighty. Let's take some calls
on this. And firstly, if I can just get my
mouth to work. Click click click, click, there we go, Pete, Hello, Hi.
Speaker 6 (12:38):
How are you going? I just wanted to relate, And
it sounds like my age similar to yours and less
so too. You seem to have been surprised by how
Lisa was was brought up. So what happened is round
in the sort of late seventies early eighties family benefit,
the government paid six dollars a person, So my mother
from the time was concerning when ye when I hit
(13:02):
high school, I was the youngest of four, so she
had done it with my simply, we got the and
the benefit the full six dollars a week, and it
was up to us, Like yourself, Lisa, we managed to
go and buy the Levi's and buy the nomads. Yeah,
but exactly exactly the same situation that you're saying, So yeah,
(13:23):
it certainly wasn't uncommon. And then the other thing, I
was kind of lucky. When I was fifteen, I managed
to get a school holiday job from fifth form sixt
fom seventh form, where I was basically earning a man's wage.
I was married men and earning the same as them,
and Mama had to pay thirty dollars. I was getting
hundred and fifty a week, and I had to get
in the hand. I'd get paid thirty dollars a week
(13:45):
in board from the age of fifteen when I was
working in the school holidays.
Speaker 5 (13:50):
Yeah, do you think you're good with money now as
a result of some of those lessons that you learned.
Speaker 6 (13:57):
I'm told by an the Countenance, sitting in his office,
he goes, I've got eight hundred clients, and he goes,
the amount of people that manage the money like you,
I could sit in this room, well done. Yeah, they
probably gives you a good idea. So yeah, so I've
got a bit of an older day. I've got younger
kids now, but certainly I'm trying to instill that things
for the discipline in them. But as you say, it's
a lot harder because it's all credit. You know, I
(14:20):
sort of pay them cash for doing the lawns or whatever.
But yet it's not quite so easy.
Speaker 5 (14:25):
And we also live in a society where we're a
fun will focus on stuff too, you know, there's so
many things to spend your money on where I guess
when I was younger, it wasn't there wasn't quite the
distractions in that space.
Speaker 2 (14:35):
Maybe that is something. Another lesson is we should teach
our kids about money? Is that do you really need
that thing that everyone else has got it? Is that
that accumulation of just crap?
Speaker 5 (14:46):
Well that's what I teach adults, right yeah, yeah, you know,
like what because you know it takes a lot of
effort to earn money today, right, so you want to
make sure that when you spend your money you spend
it wisely because otherwise, you know, we do waste a
lot of money. So I think it's really important just
to pause and goes this is the really best use
of your hard end on?
Speaker 2 (15:05):
Is that something you've always you've you've focused on with
your financial spending?
Speaker 6 (15:09):
Pete, Well, I think the hard again. Another the hardest
thing in this ding age is I was always sort
of thought like, when you're standing in the shop looking
at something, you know, go for a walk around the
block before you made that final decisions sort of thing.
Where is now so much is online it's very easy
just to go click click click. You know, you've had
a few beers coming from the table or something and
just think, oh, bugger, I've always one vell, I'm just
(15:31):
going to go and buy it, and you do it.
Before you have time to actually think about it.
Speaker 5 (15:35):
Yeah, yeah, that's that's a really good idea to walk
around the block or wait twenty four hours before.
Speaker 2 (15:40):
You cool off. Absolutely cool if you know you're right.
Cheers Pete, Thanks for call mate.
Speaker 6 (15:44):
Yeah, apprecure problem.
Speaker 2 (15:46):
I do love the text machine, the community that's out there.
I found the word that I meant when it comes
to not spending much money, and it's parsimonious. Right, there's
another one. Are you really you going to ride all
these down? We've got profligate parsimonious? What was the other one?
Speaker 5 (16:01):
God, I've been in the money world for a long time,
but I do not ended my world. I think idea
for your next books, have you written eight.
Speaker 2 (16:11):
Eight, number nine? You should? It should be like you
just have a word that's a fancy word for something
that people always have to look up because there'll be
so many past.
Speaker 4 (16:22):
Someone's going to buy that book.
Speaker 2 (16:26):
Depends what the title of it is. It could be
you could make an exciting title, but we have to
think about that. One of the texts here is quoting
is this is actually from my producer who said there's
a Cagne West quote says you can't afford it unless
you can afford to buy it twice, okay, which is
I think when it comes to stuff. But of course
no one would ever buy a house because if you
(16:47):
can not many people can afford to buy the house twice,
can they? But it's an interesting thought.
Speaker 5 (16:52):
Well but all those things make you pause, I think, right,
And so that's the objective of it. And so anything
that does that for you works is a great idea.
Speaker 2 (17:00):
Yeah, I should read some of these texts with tim
was the word you were looking for? Parsimonious? It's the
one that comes to mind. Another one the past, money's past,
Money's past them, prudent was the only one. Thrifty. I mean,
it's almost like we're doing scrabble for some many words
that will describe a way of being a little bit
careful with your money. But anyway, we are going to
take a moment and come back. What are the lessons
(17:21):
you should teach your kids about money or someone else's kids,
or any child. What is the most valuable thing you
can teach your children when it comes to money? Because
this is smart money. We want your calls on one
hundred and eight, ten and eighty and Lisa Dudson is
my guest will be back in just a moment. Yes,
and welcome back. My guest is Lisa Dudson. And we're
talking in this first part of the program about the
(17:43):
lessons you should teach your kids. Well maybe it's habits,
habits or lessons, because I mean, we could get semantically,
so couldn't we But habits are one thing as.
Speaker 4 (17:54):
Opposed to don't lessons become lebits develop.
Speaker 2 (17:58):
Into habits lessons to it? That's right. I was getting
all tied up with words and semantics because well you
know pas the word of days, parsimonious and im pecunious,
two of them. Somebody's texted saying this might time to
what we're going to talk, and going to talk about
teaching children to calculate expenses and budget correctly is important
also to work within their means. You can save all
you like for an expense easier holiday, but if you
(18:20):
haven't saved enough and don't really know how much the
holiday will cost, then you're stuck. So budgeting out budgeting
there's another lesson.
Speaker 5 (18:28):
Yeah, Well, I was going to talk a little bit
about the twenty one dollar a week grocery challenge. So
this was developed by a lady who had a with
it called simple Savings. I don't know, maybe fifteen years ago,
and so I used to get some of my clients
to do it with their kids and once or twice
a year to save money. And people go, how on
earth do you spend twenty one dollars a week on groceries.
We'd have to inflate just a little bit from inflation today,
but basically what it was was it was based on
(18:51):
two adults, two children spending twenty one dollars on groceries
in a week, and it was about the fresh fruit
and vegetables, and then clearing out the cupboards and the
freezer and the fridge and getting creative. And as you're
sitting down with your kids and they would need to
be probably maybe ten and a bar and sit down
and say, okay, we've only got this amount of money
to buy for groceries for the week. Let's see how
creative we can get. And it's quite a good exercise
(19:14):
because it makes you again think about what you're spending.
And the other side of it is is that then
you're saving a couple of hundred dollars that you would
have normally spend on your groceries. And that's quite a
good exercise to do it this time of the year
because you could put that towards your you know, your
Christmas lunch.
Speaker 2 (19:28):
Maybe Actually, when was this challenge first come up with?
Because I'm thinking twenty one bucks is going to be
a pretty tough one.
Speaker 5 (19:36):
Probably, I'm just trying to think back maybe fifteen years ago.
Speaker 4 (19:39):
Okay, yeah, maybe.
Speaker 2 (19:41):
Maybe fifte make it forty bucks come.
Speaker 5 (19:43):
Yeah, But I mean, you know, the principle is still
the same, right, it's just sitting down and go because
you know how we accumulate eight tons of tomatoes and
you know, lots of bags peas, and the freezer and
that have been there for a while and that sort
of stuff. Right, it's just having a good or clean
out and then taking the money from it and using
it for something else, but great conversations to be having
with kids, because again it comes back to that awareness.
Speaker 2 (20:05):
Well it's like that. It reminds me of genes eat
well for less, and it's just taking that moment to
think about, Okay, we want this, but is there you know,
do we really need to spend all this money? Is
this particular thing in season? Are you better off getting
canned this and it is amazing. I would I think
probably for most families. One of the reasons they would
(20:26):
avoid doing is that you almost don't want to know
how much you're wasting.
Speaker 5 (20:28):
Sometimes, oh absolutely, I mean most people waste it, or
a large percentage people waste a lot of money on
all sorts of different things and different things for different people.
But you know, but that comes back to lessons and
habits around planning and awareness, right, which start when kids
are young.
Speaker 2 (20:46):
By the way, just before you go to our next caller,
and you know, I mentioned you should do another book,
and what would the title be? And I said, you
could do a chapter on different with just one word,
things like parsimonious and things. Anyway, what would we call it?
This person suggested something. I'm going to amend it slightly,
but what their title was? You call the book have
a word with me? That's quite cool, but I would
(21:06):
change it to this, a word about money. A last
chapter would be a different word. God, that's brilliant. That
is brilliant. I learn think you can okay till ten
percent of the proceeds.
Speaker 4 (21:18):
Don't get too excited. You don't make a lot of
money writing books. I can tell you that it's.
Speaker 2 (21:22):
Like, here's your twenty one dollars. Anyway, right, let's carry
on with the calls and what we are talking about
if you have just joined us is with Lisa Dudson
about the lessons. And I don't want we don't want
to get too cleverl with it, but what are the
really basic lessons that kids should learn about money? And
let's face it, if they learn the right lesson, it
(21:43):
can be worth huge amounts of money saved or made
in investing or savings. Is in it because we're not
talking about, oh, look they might save a couple of
dollars a week on something. But if you do learn
those lessons, if you look back to what people could
waste on money without a decent understanding of it, it
literally could be hundreds of thousands of over a lifetime.
Speaker 5 (22:05):
Easily hundreds of thousands of dollars worth that you come
back to that compounding interest effect, you know, it's it's
quite phenomenal and.
Speaker 2 (22:12):
Off I wish I could have been myself back of
about thirty years would change that one. Right, let's take
some more calls.
Speaker 7 (22:18):
Calvin high and ten men, Lisa, Yes, okay, k E
l V E R end.
Speaker 8 (22:32):
What I wanted to say. You mentioned earlier on about
money which your kids receive and and what dividing it
out what to do with it, but a far better
approaches what to do with the money after they've actually
earned it. And I don't mean, you know, just the
money being handed out by mum or dad. I'm talking
about you know, some sort of a job, part time
(22:54):
job or whatever after school or whatever it is they're doing,
and so they can work out. They will start to
realize that going down the road and buying two large
ice cream ms for fifteen dollars could be half an
hour's work as opposed to just being given money from
mom and dad. So I sort of think that when
(23:15):
they've earned their money and then work out what to
do with it, that's a better way than just being
given money.
Speaker 5 (23:20):
Well, I think it's both, because I guess, unless we're
going to break in ey child labor laws that you know,
your kids have got to be a reasonable age before
they maybe go out and actually get a paid job.
I guess his pocket money, So I guess it's you know,
I think it applies to both, whether you're receiving.
Speaker 4 (23:37):
Money or earning it.
Speaker 5 (23:38):
But it's really around understanding the value of the money
and being conscious about the choices that you are making
with the money.
Speaker 4 (23:44):
That you receive.
Speaker 8 (23:46):
Does money nowadays have any value at all? Really? People
talk about, you know, they bought a house or sold
a house or whatever it is, and the price they get,
but they made money on it or whatever, But they
don't really make money because to buy exactly the same thing,
you've got to go and spend that same money again.
Speaker 2 (24:03):
So that's the money estions of investment properties. When it's
an investment property. Maybe that sea kicks out, isn't it.
Speaker 8 (24:10):
It relates back to money itself doesn't really have any value,
does it.
Speaker 5 (24:14):
Well, I don't know whether it's say I think the
value changes because of inflation. I think is what you're
getting at, because I guess when I was kid, I
probably went and got an ice cream for fifty cents.
Speaker 4 (24:21):
I don't know, I can't remember that far back.
Speaker 5 (24:23):
But and now I'm making them ice cream might cost
you five dollars, So I guess that's that's inflation, isn't
at the end of the day, So that money still
has value, it just has a different.
Speaker 4 (24:31):
Value than what it had done.
Speaker 5 (24:33):
And well, it ad buys you, you've got to have
a lot more of it to buy the same thing
because of the effect of inflation.
Speaker 8 (24:41):
But they're reckon to fall and their money are quickly parted.
Speaker 7 (24:44):
That's very truded, yes, yes, yeah, And of.
Speaker 8 (24:48):
Course you know in the last few weeks when you
think of money going up and smoke as it were,
up towards the heavens with Guy Fawkes and then oh yeah,
what is the next one? No idea Halloween, and then
they are the Black Friday, and it just goes on
(25:09):
and on, doesn't it.
Speaker 5 (25:09):
Yeah, well that is literally money going up and above
the smoke. Can't I get with that?
Speaker 2 (25:14):
I mean some people would put a price on fun
though as well, that you can actually spend money on it.
I mean, in the end, you have money to live
on and survive, and we all like a bit of
money to have fun with, because that's a big philosophy
philosophical question.
Speaker 5 (25:28):
Actually, well, that's right, and I think it's just putting
some containment around it. And you know, like for me
travels where I spend a lot of my money. For
some people they might be doing a lot of the
guy Falks type things. I mean, everyone you know has
different things about where they spend their money. But we
all have to contain that to a certain level, otherwise
we run out of it too quickly.
Speaker 2 (25:44):
We want your cause on eight hundred and eighty, ten
and eighty. My guest is Lisa Dudson, and in particular,
what lessons should you teach your kids? We'll take a
quick moment and come back and just to ticket. It's
twenty three and a half minutes to six news Talk.
Said b.
Speaker 7 (26:03):
That's my name.
Speaker 2 (26:18):
As welcome back to the show. I'm Tim Beverage. My
guest is Lisa Dudson. She's a per personal wealth educator
at Acumen. It's Acumen dot cod Danzi I think, isn't
it Lisa? It's correct? Correct, There you go. She's also
written a few books, and we've just been discussing our
brilliant idea for the next one. A word about mind you.
If there's another financial author out there, maybe Martin Horses
are saying his game. I've started it already, don't you
(26:39):
do it? He's got another one coming out here.
Speaker 4 (26:41):
Oh I love Martin. He's asking his great books.
Speaker 2 (26:43):
He's written about seventeen us.
Speaker 4 (26:45):
Yeah, yeah, he's a bit older than me. He's got
a few, but he's awesome though.
Speaker 2 (26:52):
He is a good bloke. Right, let's take some calls
lessons that kids should learn about money, Jeff Hi in.
Speaker 3 (27:01):
High I'm just talking about money generally. I knew the
value of money now. I started work when I was
eight years of age, and I worked probably farm in
the ruin. I came from the phone. I then ventured
(27:21):
into working in a big market gardens and at the
age of fifteen, I was able to buy a motorbike
to get to work because I served in an apprenticeship.
So I really didn't know my dad, my mother, my
mother and dad realized that I knew the value and
(27:46):
I used to put it in the post office box
bank and saved up and I bought a motorbike. So
that was the value of money in my days. What
I would like to say is I saw a program
on TV one time. We talk about kids in the
how to spend money. How many people in lotto who
(28:10):
won quite a few millions today are broke.
Speaker 2 (28:15):
Well, we don't have that number, but I think it
happens more regularly.
Speaker 6 (28:18):
Than we know.
Speaker 4 (28:19):
Yeah, it's a lot. Yeah, I read a book. I
read a book maybe about ten years ago.
Speaker 7 (28:24):
It was.
Speaker 5 (28:24):
It was actually about from the States, but it was
all about them people that won lotto and lots of
case studies about how they lost all their money.
Speaker 4 (28:32):
It was actually really interesting. It's a very high percentage.
Speaker 2 (28:35):
Gosh, actually it's funny when I was reading that.
Speaker 3 (28:39):
Yeah, the New zeren as well. One not.
Speaker 4 (28:43):
A high percentage. I think.
Speaker 5 (28:45):
I think you're right because of the challenges. If you're
not used to having money and suddenly you have a
heap of money, then sometimes you just don't understand the.
Speaker 2 (28:52):
Value of it.
Speaker 5 (28:53):
So but it brings back with memory actually of when
I was young, because I did start working pretty young.
And I remember again those little books used I think
it was the post office, a little paper like little
books used to have and then you take your money
and your cash. You used to get paid in a
envelope with cash, and then you'd walk down the street
to the post office and I thought it was the
post office of the post bank.
Speaker 4 (29:12):
Can't remember.
Speaker 5 (29:13):
And then you had post books, yeah, and then you'd
like fill it in and then you'd see your number,
you know, increasing value, and then they'd stamp it and
then you just had this like a little passport passbook
that you used to have with.
Speaker 2 (29:23):
There's a whole lot of money left over that people
sort of lost track of their savings book in the
post office.
Speaker 4 (29:28):
And I don't know why should I.
Speaker 5 (29:29):
Got bonus bonds. I thought did bonus bons such out
a couple of years ago. My mother had bought me
bonus bonds when I was born, So nineteen sixty eight
and I had six dollars of bonus bonds, But unfortunately
I wasn't one of the lucky ones who you know,
because you had it was a bit.
Speaker 4 (29:43):
Like a lottery, like you could win some money.
Speaker 2 (29:45):
It's a big prize.
Speaker 9 (29:46):
Yeah.
Speaker 5 (29:46):
Yeah, So my six dollars in nineteen sixty eight was
still six dollars and nineteen twenty two.
Speaker 2 (29:51):
Or the numbers. Yeah yeah. I don't think we ever
got anything out of bonus bonds, but I think I
had three dollars worth of bonus bonds.
Speaker 5 (29:59):
But I think one of the reasons I raise that
is that it's something I think that the tangible nature
of having that little pass book that you could see
your money growing, I think was actually quite good. Whereas
when today everything's electronic, I think we lose some of
that touch and feel of money.
Speaker 2 (30:15):
There was some app that I had and I can't
remember what it was when I must have lost track
of it. But it used to tell you what you
used to analyze your spending. I think it was something
that A and Z had and it would say, you've
spent this much on this sort of shopping and I'm
Petron and it was I've just forgotten. I've completely forgotten
what it was. And here I am the host of
smart Money.
Speaker 5 (30:34):
Well, there's quite a few different ones that's been over
the years. The challenge with them is often it's they
tell your informational your input information into them, but often
people don't do much with that information, right, so they
just go, oh, well I spent that, but how does
that actually change your behavior?
Speaker 2 (30:49):
Yeah, okay, let's take some let's take some other calls. Andrew, Hello, Yeah,
I just wanted to.
Speaker 9 (31:00):
Talk about, you know, not just the cost of keeping
eye on the costs, because I actually don't believe keeping
I'm the costs is actually the right thing we should
be teaching.
Speaker 2 (31:16):
Where would your emphasis be, I'd.
Speaker 9 (31:20):
Be focused on making money because at the end of
the day, you can only like, if you've got your
head on your shoulders, how it's made, you'll learn about
the costs and the process. But the key thing is
that you can only ever spend so much money.
Speaker 2 (31:42):
I think I know what you mean. It's almost as
what you is. What you're saying about being more aspirational
about find out how to really make money, and along
the way you're as opposed to thinking about how much
you should I do everything down.
Speaker 9 (31:58):
Yeah, don't screw everything down. Just go for making more money,
and suddenly it keeps on moving, moving, moving forward, and
suddenly you're making shad tons of money.
Speaker 2 (32:12):
Yeah.
Speaker 9 (32:13):
I think the value the value of you know, where
we teach kids about costs is you know, I think
that's important and they'll learn that and making money anyway,
they're the rural value. And this is what I've done
to my children is actually about making money. I've got,
(32:34):
you know, two young children, and they've got dude bank
accounts already. One fourteen, the other one's eighteen.
Speaker 2 (32:43):
That's actually that isn't you know? It's a it's a
different it's about the mindset about I think I know
what it means, as opposed to think about how don't
spend it on this, don't spend on this, focusing on
how you're going to make money so you can buy
what you want to be.
Speaker 5 (32:57):
It's a different and look, and I agree, and I
do agree. However, I have lots of clients over many
year is who earn a lot of money and spend
all of it and more and haven't actually got a head.
So I think it is it's really important to to
be aspirational and thinking about how you make it, but
you still need to be mindful of costs and having
a bit of a gap between the two.
Speaker 2 (33:17):
So that is a good point, isn't it, Andrew? Because
you often meet people who they move up in their
careers and they still never seem to have any spare
money because they just keep blowing it.
Speaker 9 (33:29):
I couldn't agree more. But the key thing is to
understand at some point in time how much you he
was going to spend in your one year and have
a great life. It might be one hundred, two hundred,
three hundred, four hundred thousand dollars, whatever it is. You've
got to put a line in the sand to say, hey,
(33:52):
look this is my I don't go beyond that.
Speaker 4 (33:56):
Yeah, but that's about all I think. Yeah, that's about awareness,
isn't it.
Speaker 3 (33:59):
You know?
Speaker 5 (34:00):
And that's what we've been talking about is around. It
is teaching people how to be aware and makes mart decisions.
Speaker 3 (34:06):
See.
Speaker 2 (34:06):
I think also what you're touching on, Andrew, is that
it's one thing to get a job and get paid
by someone else and earned by the arr and all
that sort of thing, because I would throw in that
it's a useful lesson for kids to learn. Is about
being in business? What risk versus reward? How much you know,
how do you do this, what are the costs of
doing it? Who's going to buy it, who you're going
(34:27):
to sell it to? And if you've got other people
working for can you actually make them work for you?
That makes it even better for you?
Speaker 9 (34:33):
And how business works, just like basic forecasting.
Speaker 5 (34:37):
And it's the old lemonade stand right, you know that
you often see movies about the kids and they have
you know, make lemonade, lemonade and stick it out, you know,
on sit on the side.
Speaker 2 (34:46):
Of the road. Yeah, it's like these days. The modern
equivalent would probably be thanks Andrew. The modern equivalent would
probably be the kid who learns how to make coffee
and finds a good spot to set up their little
coffee store, getting a little generator somewhere to run the
coffee machine or whatever and selling it. I don't know
what the modern equivalent of the lemonade stand is. I
haven't seen a lemonade stand for a long time.
Speaker 4 (35:04):
No, it just pup into my mind.
Speaker 2 (35:06):
That's quite a nice retro thing, isn't it, the lemonade stand?
Speaker 8 (35:10):
Yeah?
Speaker 2 (35:10):
I think so. We'll take a break. We'll come back
with Lisa Dudson, and if you want to throw an
your last minute suggestions on lessons that kids should learn,
we might sort of, we might just draw a brief
list of the things that might be quite helpful for
kids to consider for you to teach your kids about
basic lessons and money. We'll come back with that in
just a moment. It's eleven minutes to six. News Talk
(35:31):
said B. News Talk said B. This is smart Money.
My guest is Lisa Dudson talking about lessons we should
teach our kids. Actually, got some calls there, so we're
going to see if we're gonna squeeze a couple more calls.
The two callers are holding, if you can be as
brief as possible because we need about four minutes. Okay, Jeff, Hello.
Speaker 10 (35:45):
Yeah, hi guys, how are you good things? Some good
points sport out just very quickly. I think a lot
of it tons down to educated the parents are in
the first place, to passing it on to the kids.
I was born in sixty three. Myarents are in their
(36:06):
own business, and that sort of financial responsibility was passed
on to us, like you work for your money, you
save for your money. In I don't know what least
it feels about that. How do you sort of put
that back on to the parents and say, well, if
you're not educated enough to be financially responsible, how do
(36:29):
you expect your children to?
Speaker 2 (36:32):
Yeah, the same way essentially, so for parents that are
not confident financially, what do they do for their kids?
Speaker 5 (36:38):
But I don't know whether it's all about education too,
because I do have some clients who are super super
smart and terrible with money, and I've got, you know,
clients are really or people I've met over the years
who really have very limited education, but they do okay
with money. And I think sometimes it's just about keeping
it sometimes simple. You don't need to necessarily know how
to invest it, but just keeping some really simple lessons,
(37:00):
which sometimes is about making sure that there's a gap
between what you earn and what you spend.
Speaker 2 (37:05):
That's a fascinating discussion. Thanks Jeff. Sorry, we've got to
keep it moving, So we're going to finish off with Fiona.
Speaker 8 (37:09):
Hello.
Speaker 11 (37:10):
Hey, I'm sixty now.
Speaker 1 (37:12):
But I remember Mum saying when I was a kid,
if you can't pay it with cash, don't pay it
at all, save it up, then spend the cash. Do
not write checks, do not do anything like that. She
never had a checkbook until I mean I had my
checkbook before she had one.
Speaker 2 (37:29):
Actually, that's interesting. I think probably one lesson I did
learn from my mum was she was deeply suspicious of
high purchase agreements. But I and she oh, yes, and
that instantly she said, well, she explained interest to me.
That's what she said. Well, you can get it now,
but you pay interest. So what's something that costs fifty
dollars might in the end cost sixty or seventy. And
I was like, oh, that sucks.
Speaker 11 (37:51):
Yeah, but that's a great less I actually think the
kids these days I haven't got it like we have
because they don't have to learn. They don't have the
simple things of like use cash.
Speaker 7 (38:05):
You you know.
Speaker 2 (38:06):
Yeah, although probably kids who are looking to buy a house,
they will be motivated to make to learn about money,
because if you want to say for a house deposit,
I mean you've got a bit of a crash course,
don't John. Just understand the value of money?
Speaker 11 (38:20):
Yea, And the same with Lisa. I used to love
that little savings books going up and up. Yeah, I
just hate it going down.
Speaker 5 (38:26):
But you're right, it's that visual and it's that touching
you know, of money and cash, which you know these
days everything's just you know, tapping on your phone exactly.
So it does make it a little bit harder because
it's a little bit more out of sight, out of
mind than maybe it was when we were growing up.
Speaker 3 (38:38):
Yeah.
Speaker 2 (38:38):
Good only thanks for you Anna. I've got a little
list here of it. I mean it's not exhaustive because
we've just been having a bit of a chat about
teaching kids lessons. But teaching them the value of money
probably is a great first starter, isn't it. Maybe getting
a job, getting them to understand what it's like to
earn it and then spend it cumulative interest budgeting and
setting up a business.
Speaker 4 (38:59):
There you got it that it's a pretty good list.
Speaker 2 (39:02):
It's quite good, and we've given you a topic and
an idea.
Speaker 4 (39:05):
Your next book, well that might be the book after that.
Speaker 2 (39:07):
It's going to be called a word, A word, A
word about money by Lisa Dudson. She hasn't even started writing,
and every chapter is going to start with a word
like impecunious, profligate.
Speaker 4 (39:18):
Oh goodness, I never know how to spell those words.
Speaker 2 (39:21):
Anyway, Hey, thanks so much for coming on later. Great chat,
and look, we'll look forward to when we have Lisa
back in the studio talk about money. You can check
out her work at acumen dot co dot nz. It's
great and thanks to my producer, Tyra Roberts. Sunday at
six is next. Enjoy the rest of your weekend. If
you do have a Sky Sports subscription or something I reckon,
(39:41):
you should check out the f one because That's what
I'll be doing when you get home, Liam Lawson go anyway,
thanks for your time, look forward to your company next weekend.
(40:05):
For more from the Weekend Collective, listen live to News
Talk ZEDB weekends from three p m.
Speaker 10 (40:10):
Or follow the podcast on iHeartRadio
You're listening to the Weekend Collective podcast from News Talks Money.
Speaker 2 (00:13):
I lived.
Speaker 3 (00:16):
With your party, they were your friends. See you've got
a nice new car and a brand new player of pants.
Speaker 2 (00:32):
Yes, welcome back. This is the Weekend Collective. I'm Tim
Beverage and this is Smart Money. By the way, I
do just have a little hangover mentioned. I need to
mention from the health up just because I was chatting
with John because we did need to, we didn't intend to,
and then we just got carried away with all the
with all the calls we had, just reiterating the importance
(00:53):
of people of John wanted me to pass some as
we'll do it now about the importance of getting your
kids getting vaccinated. Sorry for whooping cough, because it isn't
generally pretty preventable, and also just the low vaccination rates
for things like HPV, which is you know, it's a
vaccination which can prevent cancer. So please check with your
doctor whether you are up to date with your vaccines
(01:16):
or whether your children are up to date as well.
Because of course, the weapon cough epidemic is upon us
and it's completely unnecessary, but we've got to do something
about it anyway. So there we go. That was just
something I'd promised John I would mention at the start
of this hour. And if you missed any of the conversation,
check out our podcast look for the Weekend Collective on
News Talk Seed B or on iHeartRadio. But now, excuse me,
(01:38):
a bit of a fly, a fly in the throat.
Hang on. My guest is for Smart Money is she's
a personal wealth educator at Acumen, and it's Lisa Dudson.
Speaker 4 (01:51):
Lisa, how are you you?
Speaker 2 (01:53):
Excellent? Good, good good. I'll just get you a nudge
a little closer to your mic. There. We're going to
talk about kids and financial lessons that they need to learn,
because I think sometimes kids can learn the wrong lessons
by just assuming that money grows on trees, or they
don't necessarily learn the lessons that perhaps their parents should
(02:16):
have learned, or maybe that they did learn and went
passed on. Are there some simple things that we should
teach our kids when it comes to money?
Speaker 5 (02:25):
Oh, well, of course, And I think you know all
those things that you mentioned can apply. So I mean,
I'm a big believer about teaching kids early in life
about money. It certainly creates a lot less stress for you.
As a parent, if you can teach your kids some
great money habits. And I think it's just trying to
think about the really practical things that you can teach
(02:46):
them because I think sometimes parents say, oh, you know,
my kids think that money comes out of a hole
in the wall, and you go, well, hold on a minute.
If they're seeing you go to the ATM machine, maybe
we don't do that quite as much as what we
used to do. Then they probably do see that money
comes out of a hole in the wall.
Speaker 2 (03:00):
Right, Well, what they see it's even worse. I think
it's worse now because us what they see as we
just hand out the tastic and this magic thing happens, yeah,
tapping here, and in fact it's a lesson we don't
learn ourselves because we're not handing over ten, twenty, thirty, forty,
fifty sixty. We just go big yep.
Speaker 5 (03:18):
And interestingly, there is quite a bit of research that
shows that if you use cash, you spend about twenty
percent less than if you tap or use credit, so
that's quite a significant amount of money. So I think
it's all about awareness and it's teaching kids the value
of money. So it's probably you know, linking things like
there may be some doing some work around the house
(03:40):
and giving them pocket money and then going okay, well,
if you want to buy something, how much pocket money
do you need? How many hours do you need to work,
and trying to do a bit of an exercise to
work out that if you do this, then you get that,
then you can make choices about how to spend your money.
Speaker 2 (03:55):
Because probably that so the first lesson has actually the
fundamental one of teaching them what is the value of money,
because if they just think it's something they get given
by grandma and granddad at Christmas or something, or well
maybe if they don't get given very much, they maybe
appreciate the value of it. But just learning this is
(04:16):
how much ten dollars is, this is how long you
have to work for this, or one hundred dollars as
the many hours work you have to do, this is
the tax you parn it, and so this is what
it's worth.
Speaker 5 (04:27):
Yeah, And I think it's having conversations too, because I
think money is the topic that is the least favorite
for most people to talk about. So I think, you know,
if more families talked about money, then it wouldn't be
such a to be subject and if you talked about
it more with your family, you're probably talked about it
more with your friends. I think that's a really important
thing for us to have much more open, freer conversations
(04:49):
about money. And I think that starts at a young age.
Speaker 2 (04:52):
Because some kids actually learn the lessons about money because
they don't want to be in the circumstances that their
parents might have been as well. Though they see that
mum and dad always struggled, and I was determined not
to a lot of this. I think that's actually probably
one of the worries for successful wealthy parents. Parents is
to make sure that the way that they developed their
(05:15):
success is something their kids learn, rather than if their
success is delivered a comfortable life for their kids, then
sometimes the kids are the last ones to learn the
lessons that their parents did.
Speaker 4 (05:24):
That's right, and it comes from all angles.
Speaker 5 (05:26):
I mean, that's probably what created my wealth over all,
my determination to build my personal financial wealth. As my
parents were from a very blue collar background, they worked
super hard. They had a couple of jobs just to
make ends meet, and I thought, gosh, you know, like
that seems pretty tough, and I felt, in some ways
had a fantastic Hilder. But it was quite limiting in
(05:47):
some ways. And I also grew up in the era where,
you know, being a female, I was expected to go
and work for the government as a secretary and have
two point four kids in the white picket fence, and
the whole idea horrified me, you know, because all the
guys got the management condect, you know, jobs when I went,
you know, when I was at school, and so for me,
it was very much around, Okay, well I need that
financial independence so then I can do what I want
(06:09):
and not get trapped about not being you know, having
my own money. So that's what drove me to build
my financial wealth was just so I've got freedom of choice.
Speaker 2 (06:19):
Actually, how early do you think you became aware of
money or started learning a few things about it?
Speaker 4 (06:27):
For me, I was quite young.
Speaker 5 (06:28):
I mean I think, you know, there's there's some positives
that my parents were quite hard working, because you learn
how to work hard, so you know, that's that's super important.
But also too, I was given I think it was
about thirty dollars a month. It might have been, or
I currently remember it was that long ago. Now, a
certain amount of pocket money when I started high school
and I had to buy everything apart from my school uniforms.
Speaker 4 (06:48):
So yeah, and so.
Speaker 5 (06:50):
If I wanted to think more, then I had to
I had to work for it. And I actually had
three jobs when I was at high.
Speaker 2 (06:55):
School, and you had to buy everything, set your school
uniform and to let your close and you know, your
school supplies.
Speaker 4 (07:00):
School was covered.
Speaker 5 (07:02):
And but if I wanted you know, back then nomads
were were the fad and everyone you remember those, No, Ma,
sure you're a summer error to me, right, And so
I wanted those, I had to. I had to have
jobs to say pocket money to buy you know, those shoes.
If I wanted to go out with my friends and
go to McDonald's on the weekend, because that was probably
you know, back then there wasn't a lot of options
(07:22):
for enterdaement it will take away places. Then you know,
I had to work for it. So you know, there
were really really good lessons and lots of ways. But
sometimes I talk to lots of parents who go they
money was really tight when they grew up, and so
they don't want their kids to feel that money was
as tight, and so they're quite generous with their with
their kids with money. So that sometimes is a good thing,
(07:43):
but it also can backfire because kids don't learn the
value of money.
Speaker 2 (07:47):
And I guess if they think that, I guess if
they were aware that their parents are quite wealthy, that
maybe they're going to have a good head start and
they don't need to be so. I can't think of
the word when you are well, they're not worried about its. Well,
what's the word when you are when you are safe,
when you are financially focused and you're not spending? Oh yeah,
(08:08):
starts with P. There's a word that somebody's going to
send me the one. Okay, there's Impecunious? Is the word
when you're the other way around, isn't it?
Speaker 4 (08:16):
Have they even heard of that word?
Speaker 2 (08:20):
I want to just get my producer to check that
I'm using that careful correctly. But impecunious is when you're
a bit of a spend thrift. It's a little impecunious.
Oh God, there we go. There's a win for the day.
But we want your cause on this. What are the
lessons that well, there's two angles to this. Well of
the lessons you wish you had learned when you were younger.
But if you were to impart anything about money to
(08:43):
your grandkids, your kids, your nieces, nephews, whatever. What are
the lessons do you think it's really important for them
to learn? And I think the first one that Lisa's
touched on is first is the basic one of just
learning what money is and the value of it. The
other one is, I wonder is impecunious is to have
little or no money? That's the one. I got that
(09:04):
one completely wrong, producers. Impecunious is not having much money?
Speaker 4 (09:08):
Do you know how to spell that?
Speaker 3 (09:09):
Yes?
Speaker 2 (09:09):
Yes, yes, yes, I completely no. That's why I confused
myself with the conversation penniless, poor and poverished. That's what
it means. How embarrassing that I didn't even know the
word I used impecunious. That's because you're okay, right, I'm
going to I'm gonna have to find the word that
I am searching for anyway. Sorry. Cumulative interest that's the
second one, I would, okay you second or third one?
(09:32):
Learning the power.
Speaker 4 (09:33):
Of compounding interests?
Speaker 2 (09:34):
Compounding interesting?
Speaker 4 (09:35):
Yeah, yeah.
Speaker 5 (09:35):
Albert Einstein talked about that as being the eighth wonder
of the world. And that's just simply about earning interest
on interest. So over time, your money grows in value,
and it grows both ways. If you've got debt and
you're paying interest, it grows, you know, from a negative perspective.
And that's why I keep you say, for instances, excuse me,
(09:56):
so powerful because it's the cumulative effect over time of
interest on interest, and it just grows over the long term,
so super important.
Speaker 2 (10:03):
I've only learned that sort of. I mean, I've always
known about a cumulative interests, but I haven't really been
particularly interested because as a musician, as an artist, just
s little of hand to mouth for far too many years.
But I did have to put money in when I
was in Australia into a retirement fund, you know, and
I think probably about fifteen hundred bucks went in. It's
quite some years ago, and it is worth at twenty
(10:26):
times that twenty to thirty t that's right.
Speaker 4 (10:28):
Yeah, it's quite somch I have the.
Speaker 2 (10:29):
Power of cumulative interest, which makes me wish i'd may
be stuck start a bit more back then. I think
we're loaded.
Speaker 4 (10:35):
Well, I think all of us would have had a
story like that.
Speaker 2 (10:38):
Well, that's one of the lessons you can teach your
kids though, because we've all got a what if story
haven't we Yeah, yeah, absolutely.
Speaker 5 (10:44):
And the other lesson that I have to have a
lot of my friends, who I guess are quite aware
of financially, that they teach their kids is that that
when they do receive any sort of pocket money or
gifts from family at Christmas or birthdays, is to break
it up into three category. So one is a percentage
that you're going to spend I spend today or on
the short term. One is an amount that you're going
to save, so maybe there's a family holiday and you
(11:06):
want to save up some money. And then the third
one is what percentage you're going to give to charity,
which I think some really interesting lessons.
Speaker 2 (11:13):
That is, so how would you impart that sense of,
you know, the benefit of given money to charity. What's
the lesson you want to teach your kids? It's just
about spreading it around. It's like manure, it doesn't do
any good, that's right, and that.
Speaker 5 (11:26):
There's people that are less fortunate that yourselves, and you know,
what goes around comes around, And I think all of
those lessons I think, but it's also giving you. If
I think about all the years that I've worked in
financial advice, the big thing is a lot of people
just aren't aware, you know, they do things by habit
and buy remote control. And so teaching your kids that
particular exercise, for instance, is really good because it makes
(11:47):
them away. It's making them think about when they get money,
how do they divide it up, and then thinking through
the decisions about what they want to do with their
money rather than just blowing it.
Speaker 2 (11:56):
By the way, I've found the text machine is lit
up with words to describe it, to describe being careful
with money, wasn't i? And there's a few interesting and
naughty suggestions, but prudent is one in the frugal was
the other one? All right, yeah, but I'm not sure
still the one I'm looking for. I was thinking in
terms of spending too much money. The word was profligate,
A profligate spender. That's when you're prolific. Yeah, you'll profligate. Okay,
(12:20):
that's another one. But anyway, I've had to correct myself,
and I'm pecunious. What are the lessons that you think kids'
children should learn about money?
Speaker 5 (12:28):
Oh?
Speaker 2 (12:28):
Eight hundred and eighty ten eighty. Let's take some calls
on this. And firstly, if I can just get my
mouth to work. Click click click, click, there we go, Pete, Hello, Hi.
Speaker 6 (12:38):
How are you going? I just wanted to relate, And
it sounds like my age similar to yours and less
so too. You seem to have been surprised by how
Lisa was was brought up. So what happened is round
in the sort of late seventies early eighties family benefit,
the government paid six dollars a person, So my mother
from the time was concerning when ye when I hit
(13:02):
high school, I was the youngest of four, so she
had done it with my simply, we got the and
the benefit the full six dollars a week, and it
was up to us, Like yourself, Lisa, we managed to
go and buy the Levi's and buy the nomads. Yeah,
but exactly exactly the same situation that you're saying, So yeah,
(13:23):
it certainly wasn't uncommon. And then the other thing, I
was kind of lucky. When I was fifteen, I managed
to get a school holiday job from fifth form sixt
fom seventh form, where I was basically earning a man's wage.
I was married men and earning the same as them,
and Mama had to pay thirty dollars. I was getting
hundred and fifty a week, and I had to get
in the hand. I'd get paid thirty dollars a week
(13:45):
in board from the age of fifteen when I was
working in the school holidays.
Speaker 5 (13:50):
Yeah, do you think you're good with money now as
a result of some of those lessons that you learned.
Speaker 6 (13:57):
I'm told by an the Countenance, sitting in his office,
he goes, I've got eight hundred clients, and he goes,
the amount of people that manage the money like you,
I could sit in this room, well done. Yeah, they
probably gives you a good idea. So yeah, so I've
got a bit of an older day. I've got younger
kids now, but certainly I'm trying to instill that things
for the discipline in them. But as you say, it's
a lot harder because it's all credit. You know, I
(14:20):
sort of pay them cash for doing the lawns or whatever.
But yet it's not quite so easy.
Speaker 5 (14:25):
And we also live in a society where we're a
fun will focus on stuff too, you know, there's so
many things to spend your money on where I guess
when I was younger, it wasn't there wasn't quite the
distractions in that space.
Speaker 2 (14:35):
Maybe that is something. Another lesson is we should teach
our kids about money? Is that do you really need
that thing that everyone else has got it? Is that
that accumulation of just crap?
Speaker 5 (14:46):
Well that's what I teach adults, right yeah, yeah, you know,
like what because you know it takes a lot of
effort to earn money today, right, so you want to
make sure that when you spend your money you spend
it wisely because otherwise, you know, we do waste a
lot of money. So I think it's really important just
to pause and goes this is the really best use
of your hard end on?
Speaker 2 (15:05):
Is that something you've always you've you've focused on with
your financial spending?
Speaker 6 (15:09):
Pete, Well, I think the hard again. Another the hardest
thing in this ding age is I was always sort
of thought like, when you're standing in the shop looking
at something, you know, go for a walk around the
block before you made that final decisions sort of thing.
Where is now so much is online it's very easy
just to go click click click. You know, you've had
a few beers coming from the table or something and
just think, oh, bugger, I've always one vell, I'm just
(15:31):
going to go and buy it, and you do it.
Before you have time to actually think about it.
Speaker 5 (15:35):
Yeah, yeah, that's that's a really good idea to walk
around the block or wait twenty four hours before.
Speaker 2 (15:40):
You cool off. Absolutely cool if you know you're right.
Cheers Pete, Thanks for call mate.
Speaker 6 (15:44):
Yeah, apprecure problem.
Speaker 2 (15:46):
I do love the text machine, the community that's out there.
I found the word that I meant when it comes
to not spending much money, and it's parsimonious. Right, there's
another one. Are you really you going to ride all
these down? We've got profligate parsimonious? What was the other one?
Speaker 5 (16:01):
God, I've been in the money world for a long time,
but I do not ended my world. I think idea
for your next books, have you written eight.
Speaker 2 (16:11):
Eight, number nine? You should? It should be like you
just have a word that's a fancy word for something
that people always have to look up because there'll be
so many past.
Speaker 4 (16:22):
Someone's going to buy that book.
Speaker 2 (16:26):
Depends what the title of it is. It could be
you could make an exciting title, but we have to
think about that. One of the texts here is quoting
is this is actually from my producer who said there's
a Cagne West quote says you can't afford it unless
you can afford to buy it twice, okay, which is
I think when it comes to stuff. But of course
no one would ever buy a house because if you
(16:47):
can not many people can afford to buy the house twice,
can they? But it's an interesting thought.
Speaker 5 (16:52):
Well but all those things make you pause, I think, right,
And so that's the objective of it. And so anything
that does that for you works is a great idea.
Speaker 2 (17:00):
Yeah, I should read some of these texts with tim
was the word you were looking for? Parsimonious? It's the
one that comes to mind. Another one the past, money's past,
Money's past them, prudent was the only one. Thrifty. I mean,
it's almost like we're doing scrabble for some many words
that will describe a way of being a little bit
careful with your money. But anyway, we are going to
take a moment and come back. What are the lessons
(17:21):
you should teach your kids about money or someone else's kids,
or any child. What is the most valuable thing you
can teach your children when it comes to money? Because
this is smart money. We want your calls on one
hundred and eight, ten and eighty and Lisa Dudson is
my guest will be back in just a moment. Yes,
and welcome back. My guest is Lisa Dudson. And we're
talking in this first part of the program about the
(17:43):
lessons you should teach your kids. Well maybe it's habits,
habits or lessons, because I mean, we could get semantically,
so couldn't we But habits are one thing as.
Speaker 4 (17:54):
Opposed to don't lessons become lebits develop.
Speaker 2 (17:58):
Into habits lessons to it? That's right. I was getting
all tied up with words and semantics because well you
know pas the word of days, parsimonious and im pecunious,
two of them. Somebody's texted saying this might time to
what we're going to talk, and going to talk about
teaching children to calculate expenses and budget correctly is important
also to work within their means. You can save all
you like for an expense easier holiday, but if you
(18:20):
haven't saved enough and don't really know how much the
holiday will cost, then you're stuck. So budgeting out budgeting
there's another lesson.
Speaker 5 (18:28):
Yeah, Well, I was going to talk a little bit
about the twenty one dollar a week grocery challenge. So
this was developed by a lady who had a with
it called simple Savings. I don't know, maybe fifteen years ago,
and so I used to get some of my clients
to do it with their kids and once or twice
a year to save money. And people go, how on
earth do you spend twenty one dollars a week on groceries.
We'd have to inflate just a little bit from inflation today,
but basically what it was was it was based on
(18:51):
two adults, two children spending twenty one dollars on groceries
in a week, and it was about the fresh fruit
and vegetables, and then clearing out the cupboards and the
freezer and the fridge and getting creative. And as you're
sitting down with your kids and they would need to
be probably maybe ten and a bar and sit down
and say, okay, we've only got this amount of money
to buy for groceries for the week. Let's see how
creative we can get. And it's quite a good exercise
(19:14):
because it makes you again think about what you're spending.
And the other side of it is is that then
you're saving a couple of hundred dollars that you would
have normally spend on your groceries. And that's quite a
good exercise to do it this time of the year
because you could put that towards your you know, your
Christmas lunch.
Speaker 2 (19:28):
Maybe Actually, when was this challenge first come up with?
Because I'm thinking twenty one bucks is going to be
a pretty tough one.
Speaker 5 (19:36):
Probably, I'm just trying to think back maybe fifteen years ago.
Speaker 4 (19:39):
Okay, yeah, maybe.
Speaker 2 (19:41):
Maybe fifte make it forty bucks come.
Speaker 5 (19:43):
Yeah, But I mean, you know, the principle is still
the same, right, it's just sitting down and go because
you know how we accumulate eight tons of tomatoes and
you know, lots of bags peas, and the freezer and
that have been there for a while and that sort
of stuff. Right, it's just having a good or clean
out and then taking the money from it and using
it for something else, but great conversations to be having
with kids, because again it comes back to that awareness.
Speaker 2 (20:05):
Well it's like that. It reminds me of genes eat
well for less, and it's just taking that moment to
think about, Okay, we want this, but is there you know,
do we really need to spend all this money? Is
this particular thing in season? Are you better off getting
canned this and it is amazing. I would I think
probably for most families. One of the reasons they would
(20:26):
avoid doing is that you almost don't want to know
how much you're wasting.
Speaker 5 (20:28):
Sometimes, oh absolutely, I mean most people waste it, or
a large percentage people waste a lot of money on
all sorts of different things and different things for different people.
But you know, but that comes back to lessons and
habits around planning and awareness, right, which start when kids
are young.
Speaker 2 (20:46):
By the way, just before you go to our next caller,
and you know, I mentioned you should do another book,
and what would the title be? And I said, you
could do a chapter on different with just one word,
things like parsimonious and things. Anyway, what would we call it?
This person suggested something. I'm going to amend it slightly,
but what their title was? You call the book have
a word with me? That's quite cool, but I would
(21:06):
change it to this, a word about money. A last
chapter would be a different word. God, that's brilliant. That
is brilliant. I learn think you can okay till ten
percent of the proceeds.
Speaker 4 (21:18):
Don't get too excited. You don't make a lot of
money writing books. I can tell you that it's.
Speaker 2 (21:22):
Like, here's your twenty one dollars. Anyway, right, let's carry
on with the calls and what we are talking about
if you have just joined us is with Lisa Dudson
about the lessons. And I don't want we don't want
to get too cleverl with it, but what are the
really basic lessons that kids should learn about money? And
let's face it, if they learn the right lesson, it
(21:43):
can be worth huge amounts of money saved or made
in investing or savings. Is in it because we're not
talking about, oh, look they might save a couple of
dollars a week on something. But if you do learn
those lessons, if you look back to what people could
waste on money without a decent understanding of it, it
literally could be hundreds of thousands of over a lifetime.
Speaker 5 (22:05):
Easily hundreds of thousands of dollars worth that you come
back to that compounding interest effect, you know, it's it's
quite phenomenal and.
Speaker 2 (22:12):
Off I wish I could have been myself back of
about thirty years would change that one. Right, let's take
some more calls.
Speaker 7 (22:18):
Calvin high and ten men, Lisa, Yes, okay, k E
l V E R end.
Speaker 8 (22:32):
What I wanted to say. You mentioned earlier on about
money which your kids receive and and what dividing it
out what to do with it, but a far better
approaches what to do with the money after they've actually
earned it. And I don't mean, you know, just the
money being handed out by mum or dad. I'm talking
about you know, some sort of a job, part time
(22:54):
job or whatever after school or whatever it is they're doing,
and so they can work out. They will start to
realize that going down the road and buying two large
ice cream ms for fifteen dollars could be half an
hour's work as opposed to just being given money from
mom and dad. So I sort of think that when
(23:15):
they've earned their money and then work out what to
do with it, that's a better way than just being
given money.
Speaker 5 (23:20):
Well, I think it's both, because I guess, unless we're
going to break in ey child labor laws that you know,
your kids have got to be a reasonable age before
they maybe go out and actually get a paid job.
I guess his pocket money, So I guess it's you know,
I think it applies to both, whether you're receiving.
Speaker 4 (23:37):
Money or earning it.
Speaker 5 (23:38):
But it's really around understanding the value of the money
and being conscious about the choices that you are making
with the money.
Speaker 4 (23:44):
That you receive.
Speaker 8 (23:46):
Does money nowadays have any value at all? Really? People
talk about, you know, they bought a house or sold
a house or whatever it is, and the price they get,
but they made money on it or whatever, But they
don't really make money because to buy exactly the same thing,
you've got to go and spend that same money again.
Speaker 2 (24:03):
So that's the money estions of investment properties. When it's
an investment property. Maybe that sea kicks out, isn't it.
Speaker 8 (24:10):
It relates back to money itself doesn't really have any value,
does it.
Speaker 5 (24:14):
Well, I don't know whether it's say I think the
value changes because of inflation. I think is what you're
getting at, because I guess when I was kid, I
probably went and got an ice cream for fifty cents.
Speaker 4 (24:21):
I don't know, I can't remember that far back.
Speaker 5 (24:23):
But and now I'm making them ice cream might cost
you five dollars, So I guess that's that's inflation, isn't
at the end of the day, So that money still
has value, it just has a different.
Speaker 4 (24:31):
Value than what it had done.
Speaker 5 (24:33):
And well, it ad buys you, you've got to have
a lot more of it to buy the same thing
because of the effect of inflation.
Speaker 8 (24:41):
But they're reckon to fall and their money are quickly parted.
Speaker 7 (24:44):
That's very truded, yes, yes, yeah, And of.
Speaker 8 (24:48):
Course you know in the last few weeks when you
think of money going up and smoke as it were,
up towards the heavens with Guy Fawkes and then oh yeah,
what is the next one? No idea Halloween, and then
they are the Black Friday, and it just goes on
(25:09):
and on, doesn't it.
Speaker 5 (25:09):
Yeah, well that is literally money going up and above
the smoke. Can't I get with that?
Speaker 2 (25:14):
I mean some people would put a price on fun
though as well, that you can actually spend money on it.
I mean, in the end, you have money to live
on and survive, and we all like a bit of
money to have fun with, because that's a big philosophy
philosophical question.
Speaker 5 (25:28):
Actually, well, that's right, and I think it's just putting
some containment around it. And you know, like for me
travels where I spend a lot of my money. For
some people they might be doing a lot of the
guy Falks type things. I mean, everyone you know has
different things about where they spend their money. But we
all have to contain that to a certain level, otherwise
we run out of it too quickly.
Speaker 2 (25:44):
We want your cause on eight hundred and eighty, ten
and eighty. My guest is Lisa Dudson, and in particular,
what lessons should you teach your kids? We'll take a
quick moment and come back and just to ticket. It's
twenty three and a half minutes to six news Talk.
Said b.
Speaker 7 (26:03):
That's my name.
Speaker 2 (26:18):
As welcome back to the show. I'm Tim Beverage. My
guest is Lisa Dudson. She's a per personal wealth educator
at Acumen. It's Acumen dot cod Danzi I think, isn't
it Lisa? It's correct? Correct, There you go. She's also
written a few books, and we've just been discussing our
brilliant idea for the next one. A word about mind you.
If there's another financial author out there, maybe Martin Horses
are saying his game. I've started it already, don't you
(26:39):
do it? He's got another one coming out here.
Speaker 4 (26:41):
Oh I love Martin. He's asking his great books.
Speaker 2 (26:43):
He's written about seventeen us.
Speaker 4 (26:45):
Yeah, yeah, he's a bit older than me. He's got
a few, but he's awesome though.
Speaker 2 (26:52):
He is a good bloke. Right, let's take some calls
lessons that kids should learn about money, Jeff Hi in.
Speaker 3 (27:01):
High I'm just talking about money generally. I knew the
value of money now. I started work when I was
eight years of age, and I worked probably farm in
the ruin. I came from the phone. I then ventured
(27:21):
into working in a big market gardens and at the
age of fifteen, I was able to buy a motorbike
to get to work because I served in an apprenticeship.
So I really didn't know my dad, my mother, my
mother and dad realized that I knew the value and
(27:46):
I used to put it in the post office box
bank and saved up and I bought a motorbike. So
that was the value of money in my days. What
I would like to say is I saw a program
on TV one time. We talk about kids in the
how to spend money. How many people in lotto who
(28:10):
won quite a few millions today are broke.
Speaker 2 (28:15):
Well, we don't have that number, but I think it
happens more regularly.
Speaker 6 (28:18):
Than we know.
Speaker 4 (28:19):
Yeah, it's a lot. Yeah, I read a book. I
read a book maybe about ten years ago.
Speaker 7 (28:24):
It was.
Speaker 5 (28:24):
It was actually about from the States, but it was
all about them people that won lotto and lots of
case studies about how they lost all their money.
Speaker 4 (28:32):
It was actually really interesting. It's a very high percentage.
Speaker 2 (28:35):
Gosh, actually it's funny when I was reading that.
Speaker 3 (28:39):
Yeah, the New zeren as well. One not.
Speaker 4 (28:43):
A high percentage. I think.
Speaker 5 (28:45):
I think you're right because of the challenges. If you're
not used to having money and suddenly you have a
heap of money, then sometimes you just don't understand the.
Speaker 2 (28:52):
Value of it.
Speaker 5 (28:53):
So but it brings back with memory actually of when
I was young, because I did start working pretty young.
And I remember again those little books used I think
it was the post office, a little paper like little
books used to have and then you take your money
and your cash. You used to get paid in a
envelope with cash, and then you'd walk down the street
to the post office and I thought it was the
post office of the post bank.
Speaker 4 (29:12):
Can't remember.
Speaker 5 (29:13):
And then you had post books, yeah, and then you'd
like fill it in and then you'd see your number,
you know, increasing value, and then they'd stamp it and
then you just had this like a little passport passbook
that you used to have with.
Speaker 2 (29:23):
There's a whole lot of money left over that people
sort of lost track of their savings book in the
post office.
Speaker 4 (29:28):
And I don't know why should I.
Speaker 5 (29:29):
Got bonus bonds. I thought did bonus bons such out
a couple of years ago. My mother had bought me
bonus bonds when I was born, So nineteen sixty eight
and I had six dollars of bonus bonds, But unfortunately
I wasn't one of the lucky ones who you know,
because you had it was a bit.
Speaker 4 (29:43):
Like a lottery, like you could win some money.
Speaker 2 (29:45):
It's a big prize.
Speaker 9 (29:46):
Yeah.
Speaker 5 (29:46):
Yeah, So my six dollars in nineteen sixty eight was
still six dollars and nineteen twenty two.
Speaker 2 (29:51):
Or the numbers. Yeah yeah. I don't think we ever
got anything out of bonus bonds, but I think I
had three dollars worth of bonus bonds.
Speaker 5 (29:59):
But I think one of the reasons I raise that
is that it's something I think that the tangible nature
of having that little pass book that you could see
your money growing, I think was actually quite good. Whereas
when today everything's electronic, I think we lose some of
that touch and feel of money.
Speaker 2 (30:15):
There was some app that I had and I can't
remember what it was when I must have lost track
of it. But it used to tell you what you
used to analyze your spending. I think it was something
that A and Z had and it would say, you've
spent this much on this sort of shopping and I'm
Petron and it was I've just forgotten. I've completely forgotten
what it was. And here I am the host of
smart Money.
Speaker 5 (30:34):
Well, there's quite a few different ones that's been over
the years. The challenge with them is often it's they
tell your informational your input information into them, but often
people don't do much with that information, right, so they
just go, oh, well I spent that, but how does
that actually change your behavior?
Speaker 2 (30:49):
Yeah, okay, let's take some let's take some other calls. Andrew, Hello, Yeah,
I just wanted to.
Speaker 9 (31:00):
Talk about, you know, not just the cost of keeping
eye on the costs, because I actually don't believe keeping
I'm the costs is actually the right thing we should
be teaching.
Speaker 2 (31:16):
Where would your emphasis be, I'd.
Speaker 9 (31:20):
Be focused on making money because at the end of
the day, you can only like, if you've got your
head on your shoulders, how it's made, you'll learn about
the costs and the process. But the key thing is
that you can only ever spend so much money.
Speaker 2 (31:42):
I think I know what you mean. It's almost as
what you is. What you're saying about being more aspirational
about find out how to really make money, and along
the way you're as opposed to thinking about how much
you should I do everything down.
Speaker 9 (31:58):
Yeah, don't screw everything down. Just go for making more money,
and suddenly it keeps on moving, moving, moving forward, and
suddenly you're making shad tons of money.
Speaker 2 (32:12):
Yeah.
Speaker 9 (32:13):
I think the value the value of you know, where
we teach kids about costs is you know, I think
that's important and they'll learn that and making money anyway,
they're the rural value. And this is what I've done
to my children is actually about making money. I've got,
(32:34):
you know, two young children, and they've got dude bank
accounts already. One fourteen, the other one's eighteen.
Speaker 2 (32:43):
That's actually that isn't you know? It's a it's a
different it's about the mindset about I think I know
what it means, as opposed to think about how don't
spend it on this, don't spend on this, focusing on
how you're going to make money so you can buy
what you want to be.
Speaker 5 (32:57):
It's a different and look, and I agree, and I
do agree. However, I have lots of clients over many
year is who earn a lot of money and spend
all of it and more and haven't actually got a head.
So I think it is it's really important to to
be aspirational and thinking about how you make it, but
you still need to be mindful of costs and having
a bit of a gap between the two.
Speaker 2 (33:17):
So that is a good point, isn't it, Andrew? Because
you often meet people who they move up in their
careers and they still never seem to have any spare
money because they just keep blowing it.
Speaker 9 (33:29):
I couldn't agree more. But the key thing is to
understand at some point in time how much you he
was going to spend in your one year and have
a great life. It might be one hundred, two hundred,
three hundred, four hundred thousand dollars, whatever it is. You've
got to put a line in the sand to say, hey,
(33:52):
look this is my I don't go beyond that.
Speaker 4 (33:56):
Yeah, but that's about all I think. Yeah, that's about awareness,
isn't it.
Speaker 3 (33:59):
You know?
Speaker 5 (34:00):
And that's what we've been talking about is around. It
is teaching people how to be aware and makes mart decisions.
Speaker 3 (34:06):
See.
Speaker 2 (34:06):
I think also what you're touching on, Andrew, is that
it's one thing to get a job and get paid
by someone else and earned by the arr and all
that sort of thing, because I would throw in that
it's a useful lesson for kids to learn. Is about
being in business? What risk versus reward? How much you know,
how do you do this, what are the costs of
doing it? Who's going to buy it, who you're going
(34:27):
to sell it to? And if you've got other people
working for can you actually make them work for you?
That makes it even better for you?
Speaker 9 (34:33):
And how business works, just like basic forecasting.
Speaker 5 (34:37):
And it's the old lemonade stand right, you know that
you often see movies about the kids and they have
you know, make lemonade, lemonade and stick it out, you know,
on sit on the side.
Speaker 2 (34:46):
Of the road. Yeah, it's like these days. The modern
equivalent would probably be thanks Andrew. The modern equivalent would
probably be the kid who learns how to make coffee
and finds a good spot to set up their little
coffee store, getting a little generator somewhere to run the
coffee machine or whatever and selling it. I don't know
what the modern equivalent of the lemonade stand is. I
haven't seen a lemonade stand for a long time.
Speaker 4 (35:04):
No, it just pup into my mind.
Speaker 2 (35:06):
That's quite a nice retro thing, isn't it, the lemonade stand?
Speaker 8 (35:10):
Yeah?
Speaker 2 (35:10):
I think so. We'll take a break. We'll come back
with Lisa Dudson, and if you want to throw an
your last minute suggestions on lessons that kids should learn,
we might sort of, we might just draw a brief
list of the things that might be quite helpful for
kids to consider for you to teach your kids about
basic lessons and money. We'll come back with that in
just a moment. It's eleven minutes to six. News Talk
(35:31):
said B. News Talk said B. This is smart Money.
My guest is Lisa Dudson talking about lessons we should
teach our kids. Actually, got some calls there, so we're
going to see if we're gonna squeeze a couple more calls.
The two callers are holding, if you can be as
brief as possible because we need about four minutes. Okay, Jeff, Hello.
Speaker 10 (35:45):
Yeah, hi guys, how are you good things? Some good
points sport out just very quickly. I think a lot
of it tons down to educated the parents are in
the first place, to passing it on to the kids.
I was born in sixty three. Myarents are in their
(36:06):
own business, and that sort of financial responsibility was passed
on to us, like you work for your money, you
save for your money. In I don't know what least
it feels about that. How do you sort of put
that back on to the parents and say, well, if
you're not educated enough to be financially responsible, how do
(36:29):
you expect your children to?
Speaker 2 (36:32):
Yeah, the same way essentially, so for parents that are
not confident financially, what do they do for their kids?
Speaker 5 (36:38):
But I don't know whether it's all about education too,
because I do have some clients who are super super
smart and terrible with money, and I've got, you know,
clients are really or people I've met over the years
who really have very limited education, but they do okay
with money. And I think sometimes it's just about keeping
it sometimes simple. You don't need to necessarily know how
to invest it, but just keeping some really simple lessons,
(37:00):
which sometimes is about making sure that there's a gap
between what you earn and what you spend.
Speaker 2 (37:05):
That's a fascinating discussion. Thanks Jeff. Sorry, we've got to
keep it moving, So we're going to finish off with Fiona.
Speaker 8 (37:09):
Hello.
Speaker 11 (37:10):
Hey, I'm sixty now.
Speaker 1 (37:12):
But I remember Mum saying when I was a kid,
if you can't pay it with cash, don't pay it
at all, save it up, then spend the cash. Do
not write checks, do not do anything like that. She
never had a checkbook until I mean I had my
checkbook before she had one.
Speaker 2 (37:29):
Actually, that's interesting. I think probably one lesson I did
learn from my mum was she was deeply suspicious of
high purchase agreements. But I and she oh, yes, and
that instantly she said, well, she explained interest to me.
That's what she said. Well, you can get it now,
but you pay interest. So what's something that costs fifty
dollars might in the end cost sixty or seventy. And
I was like, oh, that sucks.
Speaker 11 (37:51):
Yeah, but that's a great less I actually think the
kids these days I haven't got it like we have
because they don't have to learn. They don't have the
simple things of like use cash.
Speaker 7 (38:05):
You you know.
Speaker 2 (38:06):
Yeah, although probably kids who are looking to buy a house,
they will be motivated to make to learn about money,
because if you want to say for a house deposit,
I mean you've got a bit of a crash course,
don't John. Just understand the value of money?
Speaker 11 (38:20):
Yea, And the same with Lisa. I used to love
that little savings books going up and up. Yeah, I
just hate it going down.
Speaker 5 (38:26):
But you're right, it's that visual and it's that touching
you know, of money and cash, which you know these
days everything's just you know, tapping on your phone exactly.
So it does make it a little bit harder because
it's a little bit more out of sight, out of
mind than maybe it was when we were growing up.
Speaker 3 (38:38):
Yeah.
Speaker 2 (38:38):
Good only thanks for you Anna. I've got a little
list here of it. I mean it's not exhaustive because
we've just been having a bit of a chat about
teaching kids lessons. But teaching them the value of money
probably is a great first starter, isn't it. Maybe getting
a job, getting them to understand what it's like to
earn it and then spend it cumulative interest budgeting and
setting up a business.
Speaker 4 (38:59):
There you got it that it's a pretty good list.
Speaker 2 (39:02):
It's quite good, and we've given you a topic and
an idea.
Speaker 4 (39:05):
Your next book, well that might be the book after that.
Speaker 2 (39:07):
It's going to be called a word, A word, A
word about money by Lisa Dudson. She hasn't even started writing,
and every chapter is going to start with a word
like impecunious, profligate.
Speaker 4 (39:18):
Oh goodness, I never know how to spell those words.
Speaker 2 (39:21):
Anyway, Hey, thanks so much for coming on later. Great chat,
and look, we'll look forward to when we have Lisa
back in the studio talk about money. You can check
out her work at acumen dot co dot nz. It's
great and thanks to my producer, Tyra Roberts. Sunday at
six is next. Enjoy the rest of your weekend. If
you do have a Sky Sports subscription or something I reckon,
(39:41):
you should check out the f one because That's what
I'll be doing when you get home, Liam Lawson go anyway,
thanks for your time, look forward to your company next weekend.
(40:05):
For more from the Weekend Collective, listen live to News
Talk ZEDB weekends from three p m.
Speaker 10 (40:10):
Or follow the podcast on iHeartRadio
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