Educating the family

Over the last few years the only thing I have done in terms of money and my family is moan about the fact that our money is running out. Up until recently, I haven’t really let anyone know about the process of educating myself on money and how I am going to work towards financial independence (not having to work).

In the past, I have tried to explain our money situation with a poorly put together spreadsheet and this didn’t work. My wife would say “I like to leave it to you, as I don’t have a clue about our money.” That made two of us! If I can convince her to start learning about money, I feel it would accelerate how fast we get the money to get our financial independence. After all, two minds are better than one.

I would like to stress that I am no expert when it comes to money (far from it), but I am learning fast simply due to the volume of information I have absorbed over the last few months. I have identified a lot of my previous mistakes and am actively incorporating new habits that are hopefully moving us in the right direction.

I don’t have to get Mrs Duffy to reduce her spending. In many ways, she is tighter than me and is certainly not frivolous. If anything, I am the one who wastes the money without even realizing it. What I need to do is get her to look at the bigger picture and encourage her to understand money.

We then need to make joint decisions on what to do with it to make it grow (this is the type of language used in the books I now read so bare with me). If I can convince her that buying some more rentals will benefit us more than money spent in our existing house, I feel we can push on. We can get our heads together and get our FI (its not that I don’t want to work I want the choice and don’t want to spend my working life in shit hole b+b’s up and down the country).

I have recommended a book for her to read earlier in the summer (Rich Dad Poor Dad) and she has fucked me clean off. The spare time she got to herself was spent watching ‘Love Island’ so she ignored my recommendation. Mrs Duffy is going to be hard to educate so I might have to be patient with that one.

What Mrs Duffy has done has given me the green light to invest any spare money we get into assets. Although the subject of money doesn’t interest her she is willing to have a bit of faith.

Mrs Duffy’s reluctance to think too much about money is probably because of all my moaning so I cant really blame her. But I am persistent and hopefully I can eventually get her to understand my obsession with learning about money.

With my recently acquired money know how (well very limited knowledge but a lot more than before) I have also tried getting it into my daughter’s heads. If they grow up having a good understanding of money from an early age, it will have a massive impact on their financial future. It is frightening to think what I would have if I had invested 10% of my earnings from 18 onwards. But I am not one to dwell: “Like the Murphy’s I am not bitter.”

Stealing one of the ideas from Rich Dad (Robert Kiyosaki) I have started to play Monopoly with my kids. As we have started playing more and more Monopoly with the kids, I am constantly telling them to buy and invest. They still think they are winning by having cash and don’t understand that getting more assets will lead to more cash.

Another way of getting it into my daughter’s heads has been to educate them on compound interest. To illustrate I wrote the following example down for them:

A 10-year old girl starts her very own ISA with £100 a month. She knows about how compound interest can make you very rich when you invest for a long period. With this in mind, she decides to invest for 35 years. Over time her average interest rate she receives is 7% (stocks and shares ISA). When she gets to 45 years old she checks her ISA and is very happy to find she now has £182,306.69 (£140,206.69 from interest earned). She can’t believe that the majority of the money she has made has come from the interest she received. Dad was right all those years ago when he tortured me about compound interest.

In reality both my girls were barely listening as I tried to tell them about compound interest but again I am persistent and am hoping I can improve my teaching skills in the future…

Although they were not overly keen on the lesson they like the figures. I am going to get them a kid’s stocks and shares ISA set up and show them what it will be worth when they are 21. Hopefully this will spark a bit of interest but at this stage I am not holding my breath.

Shit with money and definitely shit at teaching my family about money. I am nothing if not a work in progress!!

P.s. Rich Dad Poor Dad (Robert Kiyosaki) is on tour in the UK and I am going to a seminar of his in Middlesbrough on Wednesday the 25th of Septmeber – I asked Mrs Duffy to come but she still has no interest in learning what to do with her money. His books are well worth a read and it will be interesting to see what he has to say in the seminar…

Leave a Reply