Teaching your children about money - what one lesson would you want them to learn?

[OliviaMumsnet]

Just that, really.
We've been asked about this (for the press, not a company btw) and we know that you're all very wise and avid about all of this and we want to hear your views.
TIA
MN Towers

That saving for something is soooooooooooo much better than buying it on credit.

Budgeting their cash to reach their fiancial aspirations (getting that bike earlier in life, getting mortage and paying it off later in life). Obviously saving is an essential part of that!

That they print more every day...

I want them not to be afraid of being in control. It sounds ridiculous, but what I hope my son will learn is a healthy attitude towards checking finances, working out what he can and can't afford, and knowing how to reach his goal through saving and planning.

(As opposed to my almost-lifelong habit of being too afraid to check, spending anyway, then having reason to be afraid when I finally do check!)

To use this country as an example of poor value for money and emigrate as soon as they can.

Same as feetheart credit is evil. If you want something save for it, or accept that you can't afford it. Never use credit.

Save first, spend later - and then a little later in life to have the business plan to know the difference between borrowing for debt and borrowing as an investment.

That you have to work for your money and anything you want in life and also make your money work hard for you.

By that I mean that they appreciate the value in earning money rather than expecting handouts and being in control of budgets, savings etc.

Never spend what you haven't got or haven't a hope of repaying easily. I use a credit card but pay it off every month. It's useful, but I don't use it as a longterm credit facility.

And save what you can for the days you'll need it.

There's no such thing as a DFS sale.

Understand interest rates, don't put all your money in one basket. Save a little for the long term future 20-30 years, Save a bit more for near future 2 - 5 years. & enjoy the here and now. That when you do borrow make sure the item last longer than the the time you are paying it back (Commerce teacher taught me that one)
Don't waste money on unnecessary insurance or warranties. Look for the add on benefits of a job, not just the wages. Don't beleive the hype that you need everything on offer., just because everyone else has it. Buy your own home as soon as possible. Not for profit but your sanity.

The minute you start getting a regular wage, sort out a standing order to siphon off part of it to a savings account. You'll never miss what you don't have, and will be pleasantly surprised to see how much you can accumulate over a year or so.

If you are going to take out credit don't be bamboozled by APR, or whatever this month's regulated item is, because they just hide the cost in something else like admin charges.
Simply ask them: what is the toal repayment. How much will it cost per month, over how many months, and what initial/terminal charges are there.

And then have a rainy-day fund to cover three months' payments.

I would want my dds to understand that earning and having your own money is so, soooo much better than borrowing/credit etc. As well as the obvious financial benefits of earning, it is important for self esteem, equality and independence. I started working at the age of around 13 (little summer jobs for people) and have always worked hard to have my own money.

Never ever borrow money unless on a mortgage.

If you want something you can't afford, you'd better work & earn the money, even if it's just a little babysitting job.

"when you do borrow make sure the item last longer than the the time you are paying it back"

Nice one Nutty. I was trying to write the same sentiment but didn't because it was too long-winded. Yours is very pithy and media-friendly (and very true). For example, if you are getting a new-build, don't be talked into getting your White Goods (lifetime 5, 10 years?) bundled into your 25 year mortgage.

Always save and buy something rather than having credit. Never get a credit card. Start saving as soon as you earn (as someone above said).

Either/ Or. One McDonalds ice cream or a packet of 10 ice creams/ doughnuts from Netto next door. How any individual spends their money is a personal choice but each coin can only be spent once so prioritise, make your choice and be happy with the choice you've taken.

They're only little so this is about as much as we can stretch to at present.

1. That saving is very important but so is having a life. I would want them to save but not to the extent of my parents who were obsessed with pensions and savings and put almost everything away to the point of living very frugally and then both dying before retirement therefore never enjoying any of it.

2. That earning your own money is a wonderful feeling.

3. That whilst they may be financially ok, not everyone is so lucky. And that this is not necessarily that person's fault.

4. Finally, that money isn't the b-all and end-all. That giving is better than receiving. That it should never be worshipped but rather used as a tool to makes themselves and others happy. And that kindness is the greatest commodity.

Setting (and sticking to) a monthly budget and saving a regular monthly sum. Also, to learn the true value of stuff, and not to waste too much money on it. i.e iPods, games machines, fancy houses, fancy cars, fancy clothes etc. IMHO it's all a complete waste of money. Stuff just clutters your life and stops you from seeing what is truly important.

It's very satisfying and good for your self-esteem if you can earn your own way and live within your means. That would include saving when you can, being able to budget, understand APR/interest rates and how to use credit sensibly.

Also that money isn't everything - yes, you need a certain amount so you don't stress about bills, but there are plenty of other good things in life so don't chase money at the expense of them.

That credit cards, loans etc are all DEBT not a licence to spend money

Always live within your means, including tucking away savings for a rainy day.

That you can only spend each pound once.

Threfore, If you buy things on credit, then you're spending money you haven't yet earned...you're not borrow from the bank, you're borrowing from your future self. And your future self is unlikely to thank you for it if all you bought was shoes.

Live within your means, appreciate the value of things and save.

If I hadn't had some savings I would have been completely screwed both when I had dd and again when I split from exH.