Please Be Brutal, Barefoot

Hello Scott,

I am in my 60s and earn less than $30,000 a year. I have 1,000 Telstra shares which I am considering cashing in (I would get about $5,000) to buy my son a car. Yes, you are probably horrified, but seeing the joy on his face would give me more pleasure than the piddling dividends I receive. I also have $60,000 in a term deposit (another piddling interest rate.) Be brutal! I love your column.

Sandra

Hi Sandra,

It’s not about being brutal. It’s about being practical. You are nearing the end of your working life and your son is at the start of his. Smiles aside, who needs the five grand more -- you or him? (And Sandra, to avoid confusion, I think you do.)

I personally wouldn’t buy a car for my son -- mainly because he’s three years old and that would be ridiculous. Still, when he’s older, the best I’ll do is match whatever he saves dollar for dollar. A first car is a great tool for teaching your kids financial responsibility.

Scott