It’s Friday again, arguably the best day of the week (in our opinion!)… the phone stops ringing and the emails seem to come to a pleasant halt. It being Friday also means it’s that time of the week… Finance Friday; a time to catch up on the recent stories surrounding children and finance, have a read and let us know what you think.
Dragons' Den star Theo Paphitis: My kids won't cope if I don't leave them my fortune
Dragons’ Den star Theo Paphitis has started to talk about the merits of leaving your children an inheritance (and in his case, a very large inheritance). Unlike many others in his position (including Simon Cowell, who we wrote about a few weeks back here) he will leave his full inheritance to his children. His argument stems purely from the fact that he feels he raised his children right and that he loves them. His Dragons’ Den co-star Duncan Bannatyne says the money would ruin his kids. The two differing opinions of how to handle your inheritance highlights the value of teaching your children about money, and raising them to be responsible enough to handle an inheritance, no matter how large or small. We applaude Paphitis for demonstrating trust in his children.
Pocket money soars as young generation give a lesson in money management
A story that caught our eye this week was the rising amount of pocket money given to children in 2013. Statistics showed that it increased by 8.6% this year, growing from £5.98 to £6.50 a week per child. This mirrors the buoyant economy, which is perhaps encouraging parents to be a bit more generous with their money. The importance of the relationship between the economy and pocket money can be a great starting point to discuss money management with your children.
12 Ways To Prevent Kids From Becoming Perpetual Students
Last but certainly not least, Forbes has published an article which gives parents twelve points on how to prevent their children from becoming perpetual students. Tips include supporting them but not spoiling them. Forbes also suggests discussing your financial situation with your children. As daunting as this may seem, it could be a valuable way to make them aware of the amount of financial support coming their way and also giving them an incentive to graduate in due time and find their own jobs. Helpful advice, we’re sure you’ll agree.
This week’s underlying lesson is the importance of trust, and more specifically trusting your children with their finances. At goHenry we believe trust is vital to help young people learn about money and grow in independence; it's really empowering for young people and helps them grow in confidence too.