Teaching your teenaged kids about financial independence should be done sooner, rather than later, according to best-selling finance author Scott Pape – also known as The Barefoot Investor.
“No teenager in their right mind – no matter how studious they are – wants to become financially literate,” Pape told Mamamia. But this doesn’t mean parents shouldn’t try to teach them.
In fact, the author insists that once they reach the age of 15, parents should force teens into a job.
Pape is is adamant that working is the only way teenagers can grow to truly appreciate money – even if part-time jobs generally come at the cost of parents’ time and energy, as working odd hours in places such as fast food restaurants, generally means transport becomes their responsibility. But the pay off is significant, as kids can learn first-hand about financial fundamentals such as budgeting and superannuation.
“No matter what school they’re at, you are not getting a great education if your teenager isn’t flipping burgers somewhere for the minimum wage,” said Pape.
Which is why Pape believes in ‘The school of hard knocks’ as an integral part of a child’s education. He explained that financial entitlement breeds financial laziness, which doesn’t bode well for the inevitable time when the ‘bank of mum and dad’ closes its doors.
Pape naturally isn’t advocating full-time work, but just enough hours so that the basic principles of money can be instilled.
“It’s not about the money, it’s about learning the value of a buck,” he said.