Complexity Killed the Cat

Hi Scott,

I just wanted to say that I completed your survey about school banking. I found the questions really long-winded and complex! It almost felt like my Year 12 English exam (back in ’79). It’s strange, as your book is so lovely and easy to read.

Mary

Hi Mary,

Thanks for the backhander!

The questions were actually set by the corporate cops, ASIC.

Look, they’re bureaucrats, not Ernest Hemingway. However, they do have an important aim with their questions:

To work out what the community thinks about banks buying their way into classrooms.

And that’s why my submission was about giving people like you a voice.

In fact, 14,195 people contributed to my submission.

And, not surprisingly, 91% of them want to see ASIC get banks out of schools.Over to you, ASIC.

Scott

Changing Our Kids’ Lives

Hi Scott,

My parents were terrible with their finances (and still are, sadly), so I learnt from them that ‘credit is OK’ and got myself into all kinds of trouble. Then, two years ago, I read The Barefoot Investor, and my partner and I are now very close to paying off all our debts. A few weeks ago I read The Barefoot Investor for Families. We have two children, aged 3 and 5, so we started the jam jars with them. Today we all went to Target, and when we were in the toy section, instead of saying “Mummy, can I have ...” they were saying “I’m going to save up for this”. How powerful is that? We are determined for our kids to be financially savvy, and now we feel we can do it.

Layla

Hi Layla,

Thanks for writing and telling me of your win. You see, I got a letter from another parent this week who told me that I was corrupting the youth of Australia. Her basic argument was that making kids work for money is too full on: “Why not just let them be kids ‒ they’ve got the rest of their lives to worry about money?”

That’s certainly one approach, yet for me it’s code for “Don’t worry, shnookums, here’s twenty bucks”.

What you’re doing, on the other hand, is teaching your kids self-reliance. More importantly, you’re giving your kids self-confidence, and there’s no age restriction on that. I’ve always said that an amazing thing happens when kids save up and buy something on their own steam. It’s not only a proud parenting moment for you, but it’s a life-changing experience for them. You got this!

Scott

Netflix For Cars?

Hi Scott,

I homeschool my 11- and 13-year-old girls. This week, after reading your letter to Sally (the teacher with car loan issues), I decided to ditch my maths lesson for the day and teach your ‘car finance’ lesson. It was such an eye-opener for my girls and a truly great life lesson. They were gobsmacked by the repayment amounts! The lesson has inspired them to teach everyone else in our extended family about the consequences of buying a car with credit. Thank you for the work you do.

Sarah

Hi Sarah,

As the question above shows, cars are very seductive!

And that’s why I love the fact that you’re taking your daughters through this lesson.It is kind of frightening to add up all the costs of owning a car that is parked 95% of the time!

That’s why cars are going the way of Netflix ‒ being offered for a monthly subscription:

In the US last week Hertz launched a car subscription service: for ,000 a month you get a new car, full maintenance, roadside assistance and insurance (and there’s no ongoing commitment, so you can take it up in December, ditch it in January, and not have any of the ongoing costs).

And it’s not just car rental companies: Volvo launched a subscription service at $600 a month that went berserk, and Mercedes-Benz, BMW, Audi, Porsche are all planning something similar.

Will this be a good deal for drivers? Time will tell. Then again, if Uber has its way, no one will drive at all!

Scott

You Made Me Cry

You made me cry today. My 90-year-old mum had her purse stolen at the local shopping centre. When I told my seven-year-old, he immediately made her a card, put in all the money from his three jars, and gave it to his grandma. I am so proud of him. Thank you.

Melanie

Melanie,

What a great kid you have!

My biggest fear is that my kids will grow up to become entitled brats.

That’s why the ‘Money Movement’ program I’ve created for primary school kids is all about Jam Jars. The Jam Jars give the kids (and their parents) the behavioural building blocks that will shape the rest of their lives: to be hard workers, smart spenders, savvy savers, and generous givers.

The final lesson of the program has the kids brainstorming ideas of who they can help in their local community, and then donating the money in their class ‘Give’ jar.

A Cambridge University study found that adult money habits start to become fixed by age seven!

It makes sense when you think about it: as the Jesuits say, “Show me the boy at seven, and I’ll show you the man”.

Well done.

Scott

The School Chaplain

Hi Scott,

I know you have already had lots of positive support, but I couldn’t agree more with the priest who sent you encouraging words last week. I am a School Chaplain. The other day, a few 16-year-old students were asking me about jobs they could make a lot of money from. I told them it was probably more important they learnt what to do with the money they did earn, and then recommended your book. I was amazed when one of them turned up the next day with the book. Coincidentally the department’s network went down that day and this boy was sitting in his IT class with a teacher who couldn’t really teach IT without a network connection. Out comes the Barefoot Investor book, and the young teacher (who loves your work too) starts taking the class through some of the principles. It got me thinking ‒ how do you think it best to bring your Barefoot principles into a classroom?

Glen

Thanks Glen,

I donated a copy of my book to every school library in the country, so I’m glad they’re being read!

As for getting these money principles into schools, I’d really encourage you, and anyone else reading this, to head over to barefootmoneymovement.org.au and apply for our pilot program!

Scott