1 00:00:07,133 --> 00:00:10,453 Speaker 1: You're listening to the Saturday Morning with Jack Teams podcast 2 00:00:10,573 --> 00:00:11,453 Speaker 1: from News Talks. 3 00:00:11,453 --> 00:00:15,493 Speaker 2: That'd be Lisa Dudson is our personal finance experts. She's 4 00:00:15,493 --> 00:00:16,213 Speaker 2: with us this morning. 5 00:00:16,293 --> 00:00:17,733 Speaker 3: Kilder Morning Jack. 6 00:00:17,813 --> 00:00:20,373 Speaker 2: Well, our we man is only less than two weeks old, 7 00:00:20,493 --> 00:00:22,773 Speaker 2: so this isn't a huge issue for him just yet. 8 00:00:22,813 --> 00:00:26,053 Speaker 2: But this morning we're talking about giving cash to kids. 9 00:00:26,373 --> 00:00:28,693 Speaker 2: Is cash a good gift for children? 10 00:00:29,413 --> 00:00:31,853 Speaker 3: Look, I think it is if you attach a bit 11 00:00:31,893 --> 00:00:35,773 Speaker 3: of a lesson with it. I mean, research shows, you know, 12 00:00:35,813 --> 00:00:38,573 Speaker 3: this is an adults that if we spend cash, we 13 00:00:38,693 --> 00:00:41,173 Speaker 3: generally spend about twenty percent lesson if we put it 14 00:00:41,253 --> 00:00:44,533 Speaker 3: on plastick. Right, yeah, you on today's World Tap. So 15 00:00:44,693 --> 00:00:47,373 Speaker 3: I think you know, cash is quite good because here's 16 00:00:47,413 --> 00:00:50,573 Speaker 3: some substance to it, right yeah. And so then I 17 00:00:50,573 --> 00:00:52,693 Speaker 3: think if you're going to do that, then use the 18 00:00:52,693 --> 00:00:56,253 Speaker 3: opportunity to attach some learnings to us from quite a 19 00:00:56,293 --> 00:00:58,773 Speaker 3: young age. Yeah, Otherwise kids grow up learning that money 20 00:00:58,773 --> 00:01:00,333 Speaker 3: comes out of a machine in the wall. 21 00:01:00,413 --> 00:01:02,133 Speaker 2: Yeah, that's that's right. Do you know. I can remember 22 00:01:02,173 --> 00:01:04,253 Speaker 2: as a kid going and seeing my granddad and he 23 00:01:04,333 --> 00:01:06,013 Speaker 2: went to an ADM. I would have been about seven 24 00:01:06,053 --> 00:01:07,733 Speaker 2: or eight year years old and he went to an ATM 25 00:01:07,773 --> 00:01:09,893 Speaker 2: to get some cash out, and I remember he got 26 00:01:09,893 --> 00:01:11,333 Speaker 2: it out and I said how much money did you 27 00:01:11,373 --> 00:01:13,093 Speaker 2: get out? And he said, I got that fifty dollars 28 00:01:13,213 --> 00:01:15,173 Speaker 2: or whatever. And I said, why didn't you just get 29 00:01:15,173 --> 00:01:17,933 Speaker 2: out ten thousand dollars and he said, well, no, I 30 00:01:18,013 --> 00:01:19,373 Speaker 2: know that's not how it works. And I said, but 31 00:01:19,613 --> 00:01:21,333 Speaker 2: I said, no, no, go on, just just get it out, 32 00:01:21,413 --> 00:01:23,533 Speaker 2: just get it out. And I literally thought that the 33 00:01:23,613 --> 00:01:27,213 Speaker 2: cash was free, you know, I couldn't. I couldn't compute 34 00:01:27,213 --> 00:01:29,453 Speaker 2: that actually that was his bank account that he was 35 00:01:29,493 --> 00:01:32,413 Speaker 2: withdrawing from. And so I suppose the benefit of cash 36 00:01:32,453 --> 00:01:35,653 Speaker 2: is that it's an as a concept. It's often easier 37 00:01:35,653 --> 00:01:37,053 Speaker 2: for children to understand. 38 00:01:36,733 --> 00:01:39,173 Speaker 3: Right, yes, I think so, yeah, yeah, And I think 39 00:01:39,173 --> 00:01:40,973 Speaker 3: it needs to be age appropriate too, you know. I 40 00:01:40,973 --> 00:01:43,453 Speaker 3: guess as they get a little bit older, you know, 41 00:01:43,533 --> 00:01:45,133 Speaker 3: and I don't really know what that age might be. 42 00:01:45,173 --> 00:01:46,733 Speaker 3: It might even be as young as five or six. 43 00:01:46,893 --> 00:01:48,813 Speaker 2: Yeah right, it's probably dependent on the kid. 44 00:01:48,973 --> 00:01:50,973 Speaker 3: Yeah, yeah, yeah, yeah, that's right. But I think it's 45 00:01:51,013 --> 00:01:54,013 Speaker 3: a wonderful thing to teach kids money from an early age, 46 00:01:54,053 --> 00:01:56,573 Speaker 3: because I tell you, as an a parent who goes, 47 00:01:57,053 --> 00:01:58,613 Speaker 3: I just want to make my life easy by giving 48 00:01:58,653 --> 00:02:00,773 Speaker 3: them what they want. Be hereful what you wish for, 49 00:02:00,853 --> 00:02:03,213 Speaker 3: because down the track you'll probably say the other side 50 00:02:03,213 --> 00:02:05,133 Speaker 3: of that. Right. Yeah, I had a lot of benefits 51 00:02:05,133 --> 00:02:07,653 Speaker 3: from putting a little bit of pain into a little 52 00:02:07,693 --> 00:02:09,613 Speaker 3: bit of effort into teaching them at a young age. 53 00:02:09,653 --> 00:02:11,533 Speaker 2: So what do you think are the lessons that we 54 00:02:11,573 --> 00:02:14,133 Speaker 2: can try and impart in those early stages. 55 00:02:14,493 --> 00:02:16,893 Speaker 3: Yes, I think that some budgeting basics is quite a 56 00:02:16,893 --> 00:02:19,773 Speaker 3: good one. I really like the idea of the spend 57 00:02:19,933 --> 00:02:23,093 Speaker 3: saved give system that a lot of people talk about. 58 00:02:23,173 --> 00:02:25,853 Speaker 3: You know, it might be you know forty thirty, you 59 00:02:25,933 --> 00:02:29,413 Speaker 3: know thirty or you know, whatever decided is. So therefore, 60 00:02:29,413 --> 00:02:31,413 Speaker 3: you know, when they get some money, then they've got 61 00:02:31,453 --> 00:02:32,813 Speaker 3: a certain amount that they can go and do what 62 00:02:32,813 --> 00:02:34,733 Speaker 3: they want with a certain amount that they've got to 63 00:02:34,773 --> 00:02:38,013 Speaker 3: save for something you know, a bit bigger and something 64 00:02:38,013 --> 00:02:40,413 Speaker 3: that they put aside to help, you know, others in society. 65 00:02:40,533 --> 00:02:44,773 Speaker 3: So you know, it teaches budgeting, saving, delay, get gratification, generosity, 66 00:02:45,093 --> 00:02:46,013 Speaker 3: wonderful lessons. 67 00:02:46,533 --> 00:02:49,013 Speaker 2: That's what my sister does with her kids, the spend save, 68 00:02:49,093 --> 00:02:50,893 Speaker 2: give and keeps them in different jars. So I think, 69 00:02:50,893 --> 00:02:54,613 Speaker 2: you know, say they get a dollar of reach or something. Then, Yeah, 70 00:02:54,613 --> 00:02:57,933 Speaker 2: it kind of teaches them some values around thinking about 71 00:02:57,933 --> 00:02:59,853 Speaker 2: their community and that kind of thing, as well as 72 00:02:59,893 --> 00:03:02,333 Speaker 2: the benefits of saving for a while. And it also 73 00:03:02,373 --> 00:03:05,093 Speaker 2: gives them an opportunity to go and recount every jar 74 00:03:05,253 --> 00:03:07,133 Speaker 2: from time to time, as they tend to do. 75 00:03:07,453 --> 00:03:11,373 Speaker 3: Yeah, because that's that that visual experience is I think wonderful. 76 00:03:11,493 --> 00:03:14,613 Speaker 3: Right when you get that visualness, I think you it's 77 00:03:14,733 --> 00:03:17,213 Speaker 3: it's more tangible and I think you learn better from it. 78 00:03:17,413 --> 00:03:17,573 Speaker 1: Yeah. 79 00:03:17,613 --> 00:03:20,813 Speaker 3: Other thing is that characters and gold setting, so sort 80 00:03:20,853 --> 00:03:22,773 Speaker 3: of actually sitting down and going okay, well what do 81 00:03:22,813 --> 00:03:25,453 Speaker 3: you want to spend your money on and going okay, 82 00:03:25,493 --> 00:03:27,773 Speaker 3: well you know what is it that you want? How 83 00:03:27,853 --> 00:03:30,013 Speaker 3: much you've got how many weeks do you need to 84 00:03:30,053 --> 00:03:33,093 Speaker 3: be you know, saving money for before you you know, 85 00:03:33,173 --> 00:03:35,013 Speaker 3: can actually buy that thing that you want to buy. 86 00:03:35,093 --> 00:03:37,533 Speaker 3: I think that's an awesome thing to do. 87 00:03:37,773 --> 00:03:39,893 Speaker 2: Yeah, that makes a lot of sense. 88 00:03:40,453 --> 00:03:43,213 Speaker 3: Yeah, and then alongside of that also encouraging them to 89 00:03:43,253 --> 00:03:45,373 Speaker 3: do jobs or projects that they can earn a little 90 00:03:45,373 --> 00:03:47,693 Speaker 3: bit of extra money from, you know, which is the 91 00:03:47,733 --> 00:03:50,893 Speaker 3: pocket money concept. Right, So then they learn that there's 92 00:03:51,373 --> 00:03:54,453 Speaker 3: you know, there's value in the money and they have 93 00:03:54,533 --> 00:03:56,613 Speaker 3: to do something together other than the magic machine in 94 00:03:56,613 --> 00:03:56,893 Speaker 3: the wall. 95 00:03:57,133 --> 00:04:00,653 Speaker 2: Yeah, So I've got mixed thoughts on pocket money as 96 00:04:00,693 --> 00:04:02,693 Speaker 2: a whole. So I've got some friends who I think 97 00:04:02,733 --> 00:04:04,533 Speaker 2: have gone a good way about it, so that their 98 00:04:04,533 --> 00:04:08,853 Speaker 2: thing is that by being a contributing member to the family, 99 00:04:10,013 --> 00:04:12,293 Speaker 2: you are expected to do some jobs around the house 100 00:04:12,453 --> 00:04:15,173 Speaker 2: just by being part of the family, and that you 101 00:04:15,293 --> 00:04:17,333 Speaker 2: will expect to get some a small amount of pocket 102 00:04:17,333 --> 00:04:20,053 Speaker 2: money as a result, because you know, the family income 103 00:04:20,173 --> 00:04:23,093 Speaker 2: is shared and the family jobs are shared. But that 104 00:04:23,213 --> 00:04:26,213 Speaker 2: if you do additional stuff, then there might be an 105 00:04:26,253 --> 00:04:28,813 Speaker 2: opportunity for some things. Or if you you know, go 106 00:04:28,853 --> 00:04:30,653 Speaker 2: and help out the neighbors or something like that, then 107 00:04:30,653 --> 00:04:33,213 Speaker 2: there might be an opportunity to do some additional things. 108 00:04:33,213 --> 00:04:34,413 Speaker 2: And I think that's a really good way to go 109 00:04:34,453 --> 00:04:34,813 Speaker 2: about it. 110 00:04:34,813 --> 00:04:36,973 Speaker 3: And I think that's that would probably might preferred thing 111 00:04:37,013 --> 00:04:39,133 Speaker 3: as well, because then you've got a balance and then 112 00:04:39,173 --> 00:04:40,653 Speaker 3: it's not like, well, I'm not going to make my 113 00:04:40,693 --> 00:04:42,133 Speaker 3: bed unless you give me some money. You know, you 114 00:04:42,173 --> 00:04:44,333 Speaker 3: don't want to get into that sort of situation. The 115 00:04:44,373 --> 00:04:46,093 Speaker 3: other thing that I really quite like that I've seen 116 00:04:46,213 --> 00:04:47,533 Speaker 3: number of friends to do is they say, did there 117 00:04:47,773 --> 00:04:49,373 Speaker 3: you know to be kids and you know, they need 118 00:04:49,373 --> 00:04:50,693 Speaker 3: to be a little bit older and say, Okay, we've 119 00:04:50,693 --> 00:04:52,613 Speaker 3: got fifty dollars to spend this weekend or a hundred 120 00:04:52,613 --> 00:04:54,213 Speaker 3: dollars to spend this weekend, whatever it is, and go 121 00:04:54,413 --> 00:04:56,973 Speaker 3: or even over the month and go right, you know, 122 00:04:57,053 --> 00:04:59,533 Speaker 3: you're in charge of it. Yeah, to sit down and 123 00:04:59,573 --> 00:05:01,693 Speaker 3: decide what we're going to do. So that might mean 124 00:05:01,733 --> 00:05:04,573 Speaker 3: that we go to the movies one weekend, but because 125 00:05:04,573 --> 00:05:06,533 Speaker 3: we spent most of the money that the need, we 126 00:05:06,653 --> 00:05:08,133 Speaker 3: ken we have to go to the take a picnic 127 00:05:08,173 --> 00:05:10,053 Speaker 3: and go to the park because we've run out of cash. 128 00:05:10,453 --> 00:05:13,093 Speaker 2: Yeah, that's that's that's amazing. I mean you've got to 129 00:05:13,093 --> 00:05:16,173 Speaker 2: have some confidence or you've got to be out. 130 00:05:16,253 --> 00:05:16,453 Speaker 1: Yeah. 131 00:05:16,533 --> 00:05:18,933 Speaker 3: Yeah, but if they blow it, they blow it right. 132 00:05:19,453 --> 00:05:20,853 Speaker 2: Sure, But then you've got to put your. 133 00:05:20,773 --> 00:05:23,333 Speaker 3: Foot down and say, well, you made the decision. 134 00:05:23,613 --> 00:05:24,573 Speaker 2: For dinner family. 135 00:05:25,173 --> 00:05:25,373 Speaker 1: Yeah. 136 00:05:25,413 --> 00:05:27,653 Speaker 3: Yeah, but it's that choice consequence, and that's what I 137 00:05:28,013 --> 00:05:31,173 Speaker 3: a lot of dolts. Yeah, it's that critical thinking about 138 00:05:31,493 --> 00:05:34,813 Speaker 3: if you do this, then this then happens, right, and 139 00:05:34,853 --> 00:05:36,613 Speaker 3: that's what you want to have happened. So I think 140 00:05:36,653 --> 00:05:37,773 Speaker 3: that's a great thing to be doing. 141 00:05:37,813 --> 00:05:39,853 Speaker 2: And that's a really good way to learn the lesson 142 00:05:39,933 --> 00:05:42,453 Speaker 2: quickly as well, I think, which is which is a 143 00:05:42,493 --> 00:05:44,653 Speaker 2: real upside. Yeah, and then. 144 00:05:44,573 --> 00:05:47,533 Speaker 3: They start learning too that they start looking for discounts 145 00:05:47,573 --> 00:05:51,493 Speaker 3: online or comparing activities costs. Again, a great thing for 146 00:05:51,533 --> 00:05:54,093 Speaker 3: down the track when you start, you know, doing a 147 00:05:54,173 --> 00:05:57,293 Speaker 3: smart shopping right. Yeah. The other thing I quite like 148 00:05:57,373 --> 00:05:59,973 Speaker 3: from a saving perspective or an investing perspective, and it's 149 00:05:59,973 --> 00:06:02,933 Speaker 3: probably because maybe a bit older, is to start introducing 150 00:06:02,973 --> 00:06:06,133 Speaker 3: matching contributions, so then they get to a certain goal 151 00:06:06,213 --> 00:06:08,333 Speaker 3: of saving, then you might chop it up. 152 00:06:08,813 --> 00:06:11,813 Speaker 2: Oh that's a good idea as well, to really incentivize that. Yeah, 153 00:06:11,893 --> 00:06:14,973 Speaker 2: and maybe even I mean it's almost like key we say, 154 00:06:15,013 --> 00:06:17,213 Speaker 2: but it's more than you get from compound interest necessarily, 155 00:06:17,253 --> 00:06:19,813 Speaker 2: but to try and really hammer home the benefit of saving, 156 00:06:19,853 --> 00:06:21,133 Speaker 2: that's a yeah, that's a great. 157 00:06:21,453 --> 00:06:28,333 Speaker 3: And I love that for university fees and also home deposits, 158 00:06:28,453 --> 00:06:30,813 Speaker 3: Like parents are contributing a lot these dates to the kids' 159 00:06:30,813 --> 00:06:32,573 Speaker 3: home deposits, but I'm like, don't give it to them. 160 00:06:32,933 --> 00:06:33,333 Speaker 3: Match it. 161 00:06:33,893 --> 00:06:36,893 Speaker 2: Yeah, that's a very very good piece of advice. Okay, Hey, 162 00:06:36,893 --> 00:06:39,733 Speaker 2: thank you so much, Lisa. Those are really good practical tips. 163 00:06:39,813 --> 00:06:40,453 Speaker 2: Appreciate it. 164 00:06:40,573 --> 00:06:43,973 Speaker 3: Something to be prepared for Jacks gulp. 165 00:06:44,973 --> 00:06:46,973 Speaker 2: I think he's a little young to be deciding what 166 00:06:46,973 --> 00:06:49,253 Speaker 2: we'll be doing for fun next week. But yeah, we'll 167 00:06:49,293 --> 00:06:53,133 Speaker 2: see all right. Thanks Jack, That is Lisa does in 168 00:06:53,133 --> 00:06:55,333 Speaker 2: our personal finance expert tell you this much, we certainly 169 00:06:55,373 --> 00:06:56,133 Speaker 2: won't be sleeping 170 00:06:57,493 --> 00:07:00,613 Speaker 1: For more From Saturday Morning with Jack Tame, Listen live 171 00:07:00,693 --> 00:07:03,533 Speaker 1: to news talks that'd be from nine am Saturday, or 172 00:07:03,573 --> 00:07:05,493 Speaker 1: follow the podcast on iHeartRadio.