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Emily from Sorted

Would you have your 5 year old pay rent?

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How many of you have read this article? The basic premise of it is that a mother has her 5-year-old pay her money for rent, water and food. The mother is storing away the pay in a savings account to give to her daughter when she turns 18. 

http://www.nzherald.co.nz/lifestyle/news/article.cfm?c_id=6&objectid=11976577

Some say it's a great way to teach a child about money and it's not like the mother is using the money herself. Others are arguing that it's unfair on a child so young and it's cruel. 

What do you all think? Is it wise or just mean?

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I'd say it's a good idea, as long as it doesn't cause her daughter stress (spending $5 elsewhere before paying "rent"). It sounds more like creative financial education. 60/40 voters on the article said they don't agree/agree, so readers divided. The daughter probably won't grow up to be a financial noob like the rest of us suckers :) 

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When my niece was little, I took her to the dairy to buy bread one morning. she had $5 and she rushed around picking up things to buy. I stopped her and explain the prices on the candy to her and how much she had. I told her she can spend a $1 on lollies every day to eat or $5 on two chocolate bars for today and go without for next few days. She chose the $1 lollies and pocketed the $4 at 3 years of age.

I think the mother is doing a great job to educate her child in the above story. Nowadays parents enroll their children in sports or arts at an early age and tell them they are going to be superstars one day. they teach them how to talk, dress, eat, etc all from an early age so why not about the commodity which gets you all those things from an early age. Learning to walk is dangerous and stressful for a child, hot milk can burn a child or choke and it all is stressful for a child in the beginning. everything new is. But slowly they start to enjoy the freedom of walking, of deciding what their favorite foods are,etc. So why not they joys of managing money from a young age.

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I have never defaulted in my rent or utilities, but today I am bankrupted.

I think most people eventually learn to pay rent and utilities because they are deemed basic living costs and will generally take priority over other expenses.  But paying $1 for cable for a regular subscription for a liability? seriously?

Why not teach the kid about how to create cashflows and how to provide a valuable service to others. Put the cable $1 towards a real financial education, or donate it to a charity, even a small donation and she would receive information about how she is helping to make the world a better place.

Honestly, are those things less exciting than cable TV!!! And the cable and food and electricity of $1 each have the same value?

And that is deemed a good strategy?

I'd like to know if the mother is actually in debt.

 

 

 

 

 

 

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On ‎22‎/‎01‎/‎2018 at 9:13 AM, Emily from Sorted said:

@Tina I like what you say about "the joys of managing money from a young age". It would be great for children to find joy in money and not stress from a young age!

I take inspiration from my grandfather who started my schooling from the age of 3 and got me to count the change left over from the day to day costs of running a rural household. My biological brother was brought up in household where he was given everything and spent his free time and money as most children do.

When he grew and had to strike out on his own, he made mistakes but instead of learning from those he gave and today is living off someone.

As for me, I was on my own by 19 and yes I made mistakes and thought about giving up but the lessons I learnt at a young age helped me go on and today I am financially stable.

Learn to walk before running and learning to count before to budget is a good way to begin for young minds to give them the courage and confidence to keep on striving.

 

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