By Amanda Morrall (email)
1) Teach them well
Research suggests that children's money values and behaviours are learnt from an early age, primarily through modelling. I'm not so sure about this as I know friends whose parents are horrible with money, which triggered the opposite effect in their offspring. Conversely, I know friends whose parents are model money managers and yet their kids are financial write offs.
We talk about money a fair bit in my household. I have one child who shows early indications of becoming a shameless materialist, who picks out rack of lamb at the grocery store and talks about buying a Lamborghini when he's older. The other informs me that he plans to become a monk on the one condition he keeps his hair, which seems to hold more value for him than money. Goodness knows where they'll end up. I tell them if they start saving now, they'll be free to do as a please when they're older. As they seem to have selective hearing, it's hard to know if they're listening or not. We'll see.
The following blog outlines five lessons every child should know about money. I would agree with them all.
2) Bond laddering
There is conflicting opinion about where interest rates are headed. New Zealand economists (at least those working at the banks here) suggest they'll be on the rise again soon, hence all their carrying on about fixing your mortgage. Those with a less optimistic view about the world economy and how it'll impact on NZ, believe the low interest rate environment is here to stay, for a while. How do you square all this as an investor?
This article from yahoo finance explains how bond laddering is one way to deal with the interest rate uncertainty on the fixed-interest portion on your portfolio.
3) Blame it on the banks
It is very trendy these day to blame the bloated banking sector for the world's woes. But is this anger justified? Could it be the banks are merely scapegoats for our own personal disappointments or other societal ills that really are our own collective doing? The Guardian does some head shrinking on the issue with the help of a psychoanalyst.
4) Financial yogi
Mini-me No.1 came out with a cracker a few years back when he was 7 years old. He said "Money man smart, yogi wise" to which I replied, "Very true grasshopper.''
I think it's what the two can teach each other where we'll find value. In that spirit, here's a blog from financial planner/yogi Brent Kessel talking about how to apply the principle of Satya (truth) to personal finance and spending.
5) TSB goes mobile
Slowly but surely, New Zealand banks are joining the modern age creating apps that will make mobile banking easier or more user friendly. TSB puts itself at the front lines this week after launching a new app that features a range of "widgets" including a foreign currency calculator, personalised security setting features and social media functions. So far, it only works on I-phones. More details here on stuff.co.nz.
See also interest.co.nz's currency section here, where you'll find travel currency calculator on the right hand side. We'll go mobile one day too, don't you worry.