By the time your child leaves home they should have promised you to never, ever get a credit card.Scott Pape
The Barefoot Investor for families | Scott Pape
In the follow up sequel to his original best selling hit ‘The Barefoot Investor’, Pape turns his attention to the younger generation and helping parents to teach their children how to be financially literate.
Through his ‘Barefoot ten’ he establishes the ten commandments for teaching your child financial literacy; these start with opening up a simple zero-fee high interest savings account, volunteering in their local community, getting a part time job (from age 15 onward), and then progress right through to saving for a home deposit and setting up their ultra-low-cost, high growth index fund based retirement accounts.
Pape extols the virtue of giving and volunteering, and encourages parents to set up three jars for each of their children; A Give, Smile and Splurge jar. Parents can then provide each child with a physical allowance or pocket money for completing age appropriate jobs in the household. The physical payment is the key, as it allows children to reinforce the saving concept by placing their allowance in their ‘three jars’ in whichever ratio they choose.
Barefoot for families is packed full of practical parenting advice on the topic of teaching your kids smart money habits. I would recommend it not only for parents or those expecting, but for everyone as its simplicity and take on the psychology of finance is a great reflection on our modern society.