At what age dis you become financially aware?
Discussion
I've really been enjoying reading this sub forum over the last few days. I've stumbled in here in the past but words like isa and buy to let have scared me off thinking that they wouldn't apply to me for years, but since turning the grand old age of 22 and realizing that I have nothing to show for my 5 years of full time working has made me look at things in s different light and I am now inspired to sort my fiances out and hopefully get on the track of making even more, which is a damn sight different to how I was just a few years ago, somehow spending 2500 a year on insurance in order to run old high maintenance 15mpg cars while earning 11000 a year...
Anyway, I'm keen to find out at what age did you realize money doesn't grow on trees and that financial planning is a skill that needs to be learned? Did you notice a distinct difference to the way you lived your life?
Anyway, I'm keen to find out at what age did you realize money doesn't grow on trees and that financial planning is a skill that needs to be learned? Did you notice a distinct difference to the way you lived your life?
279 said:
Anyway, I'm keen to find out at what age did you realize money doesn't grow on trees and that financial planning is a skill that needs to be learned?
Skill isn't quite how I'd describe it, but about 8 or 9 at a guess when I started to save pocket money instead of spending it all on sweets. By about 13 I was able to buy shares. Compound interest was pre-11+ I'm pretty sure.When I was small and just starting to read I had great difficulty with those pages that had rows and rows of stock quotes. All the company names were abbreviations with very few vowels, I couldn't pronounce any of them
Once my parents stopped laughing at my efforts, they explained those pages were for people with lots of money.
So about 5.
Once my parents stopped laughing at my efforts, they explained those pages were for people with lots of money.
So about 5.
I made a mistake quite early on that has served me well.
When i was 19 i had a desire to get a laptop on finance and a mobile phone ( this was when mobiles were just becoming more popular but there was no pay as u go and the contracts and calls were comparatively pricey)
The laptop finance went on well beyond the useful lifetime of the thing and the two finance agreements became a worrysome burden.
Since then i have never financed anything.
When i was 19 i had a desire to get a laptop on finance and a mobile phone ( this was when mobiles were just becoming more popular but there was no pay as u go and the contracts and calls were comparatively pricey)
The laptop finance went on well beyond the useful lifetime of the thing and the two finance agreements became a worrysome burden.
Since then i have never financed anything.
When I started full time work, aged 18.
I'm 19 now and have a nice nice bit of savings (ISA and Premium bonds), pay for my own car, fuel and insurance.
Never purchased anything on finance but do have monthly out goings (phone and lottery DD).
I'd like to be able to get a mortgage by the time i'm 25 (at the absolute latest!). Preferably before, the sooner you start paying it the sooner you finish paying it.
One of my friends lost his job and literally has no money now, no savings at all. I couldn't live pay cheque to pay cheque. Not for me.
I'm 19 now and have a nice nice bit of savings (ISA and Premium bonds), pay for my own car, fuel and insurance.
Never purchased anything on finance but do have monthly out goings (phone and lottery DD).
I'd like to be able to get a mortgage by the time i'm 25 (at the absolute latest!). Preferably before, the sooner you start paying it the sooner you finish paying it.
One of my friends lost his job and literally has no money now, no savings at all. I couldn't live pay cheque to pay cheque. Not for me.
28, previously had a no f
ks given attitude to money. "Its only a number in some database somewhere", had lots of credit and spent 90% of my income on cars and doing awesome stuff. Don't regret it one bit, but I am now focussing on saving money, paid off all my debt and am saving up for a house deposit. Got to the point where I've become aware of how much money I've spent on frivolous purchases for short-term satisfaction and have decided to focus on longer-term goals instead.
ks given attitude to money. "Its only a number in some database somewhere", had lots of credit and spent 90% of my income on cars and doing awesome stuff. Don't regret it one bit, but I am now focussing on saving money, paid off all my debt and am saving up for a house deposit. Got to the point where I've become aware of how much money I've spent on frivolous purchases for short-term satisfaction and have decided to focus on longer-term goals instead. It's probably starting to hit home now at 31 if i'm brutally honest. I've always had savings in my 20's but before kids I was quite a bit of a spender on things, mostly gadgets i.e. things I didn't really need, and if I had a fair sized credit card balance I'd shift it to 0% and keep the money in the building society, knowing that I could pay it off if I needed to.
But then the kids came along. The first was OK as my wife worked part time in the evenings which mean't no childcare costs so we were in a similar (financial) situation. Then the second came along, the evening job wasn't there any more so she had to work during the day. This led to the need for a second car to share the dropping off/ picking up responsibilities as well as £700 a month in childcare costs! Then we started to think the house was too small and put it on the market to test the waters. It sold almost instantly for asking price to a cash buyer and there was no going back. We worked out our budget but there was nothing around. Then out of the blue an amazing house came on the market for £30k above budget (but realistically £30k less than it was worth for it a quick sale). We could just about scrape the money together to pay for it (deposit, stamp duty etc) but it wiped out our savings. The earlier credit card balances were still lingering and there was little option but to consolidate into a decent sized loan with nothing really to show for it. In my mind I justify it as a car loan as it equates to about the value of our car but know that it wouldn't be there if I had either not bought said gadgets or paid it back.
As soon as the kids go to school we'll not need a second car, the mortgage will become unfixed and we'll free up about £1k a month. That's unfortunately about 3 years away so we struggle on until then!
But then the kids came along. The first was OK as my wife worked part time in the evenings which mean't no childcare costs so we were in a similar (financial) situation. Then the second came along, the evening job wasn't there any more so she had to work during the day. This led to the need for a second car to share the dropping off/ picking up responsibilities as well as £700 a month in childcare costs! Then we started to think the house was too small and put it on the market to test the waters. It sold almost instantly for asking price to a cash buyer and there was no going back. We worked out our budget but there was nothing around. Then out of the blue an amazing house came on the market for £30k above budget (but realistically £30k less than it was worth for it a quick sale). We could just about scrape the money together to pay for it (deposit, stamp duty etc) but it wiped out our savings. The earlier credit card balances were still lingering and there was little option but to consolidate into a decent sized loan with nothing really to show for it. In my mind I justify it as a car loan as it equates to about the value of our car but know that it wouldn't be there if I had either not bought said gadgets or paid it back.
As soon as the kids go to school we'll not need a second car, the mortgage will become unfixed and we'll free up about £1k a month. That's unfortunately about 3 years away so we struggle on until then!
Edited by mx stu on Tuesday 3rd September 15:06
OscarIndia said:
Just after my 18th Birthday, when I found out that my grandfather had left me and my brother the farm.
Until then it had been managed by my father, who had racked up @£2m in debts.
Quite scary when the cushy life you led turned out to be a fabrication!
Wow, how does someone rack up £2m of debt?Until then it had been managed by my father, who had racked up @£2m in debts.
Quite scary when the cushy life you led turned out to be a fabrication!
If you want to become financially aware try : http://forums.moneysavingexpert.com/forumdisplay.p...
or
http://forums.moneysavingexpert.com/forumdisplay.p...
Much of the posts make interesting reading.
or
http://forums.moneysavingexpert.com/forumdisplay.p...
Much of the posts make interesting reading.
Probably at the age of 31 when I sold a flat after owning it for 5 years and being shocked at how little capital I had paid off. I felt stupid that it was a surprise.
Ever since then I have tried to make sure that I understand any financial contracts that I enter into and be able to calculate them myself, usually on Excel.
Ever since then I have tried to make sure that I understand any financial contracts that I enter into and be able to calculate them myself, usually on Excel.
At about 11!
When I started high school, I was given a rise in "Pocket Money" by my dad, along with a "Menu" for my packed school dinners, complete with prices! I had to pay for my sandwiches, crisps etc and manage my own money. Must admit, it didn't take long to learn that putting it in the slot machine on a Monday meant I was hungry for the rest of the week!!!!!!!!!!
Strange idea, I still wonder............
S
When I started high school, I was given a rise in "Pocket Money" by my dad, along with a "Menu" for my packed school dinners, complete with prices! I had to pay for my sandwiches, crisps etc and manage my own money. Must admit, it didn't take long to learn that putting it in the slot machine on a Monday meant I was hungry for the rest of the week!!!!!!!!!!
Strange idea, I still wonder............
S
Rickeh said:
Wow, how does someone rack up £2m of debt?
Quite easily by all accounts! He had been running the place for 15+ years, he was not the most financially astute person and lived a very good life. Plus the fact that Lloyds Bank Stiffed us! A policy that was taken out under a company that Lloyds took over was made to fail. We took this through the ombudsman and won.
Unfortunately with the vagueries of the SFA at the time their penalty system worked in funny ways.
They set down a two tiered penalty. Part one was a compulsory element that came to @£200k. Part two was voluntary that came to @£1.4m. It was the first time that a voluntary element had not been paid, and we could do nothing about it!
I think I was always financially aware...... seem to recall my Dad being called to my primary school as I was caught selling football stickers for 3p each (having bought them at 2p). Dad was proud.....
Never stopped me sticking cars on mortgages and financing holidays and investments on credit cards etc.
Just a balance really - don't go to the edge as you might get knocked over. But you're a long time dead so enjoy yourself...
Never stopped me sticking cars on mortgages and financing holidays and investments on credit cards etc.
Just a balance really - don't go to the edge as you might get knocked over. But you're a long time dead so enjoy yourself...
Lawrence5 said:
I think I was always financially aware...... seem to recall my Dad being called to my primary school as I was caught selling football stickers for 3p each (having bought them at 2p). Dad was proud.....
.
I used to sell my packed lunch to the fat kids in school. Mum probably thought I had an eating disorder. .
About 30, despite working in Banking and Finance since the age of 20ish.
I was a real live for today / the weekend / next Holiday type of person, I was earning a small fortune for someone my age, but whilst my friends bought houses / flats when they were comparably cheap by today's standards I rented, even though I could have bought a place with a 100% or more mortgage for about what I was paying in rent.
I was constantly overdrawn and generally scrambling around for food / fuel money a week before payday even though I'd been out all weekend, and every weekend before.
I was getting annual bonuses between 7k and 20k depending on what type of year I was having, but don't have a thing to show for them, I would guess that my total bonus pot for the decade I worked in the industry would be 70k-ish, bearing in mind that most of the houses my Mates bought in their early 20's cost around the 100k mark and I didn't need any of this money for day-to-day living I could have been living in my own place with 70% equity or so by the age of 30, but when it all went to st and I got made redundant at 31 (with a tax free 15k pay-off) I was back living with my Folks 3 months later.
I kick myself now 5 years later, I'm married with a child, I've got a pretty good job, but the bonuses are a thing of the past and even though we both work full time we're struggling to save for the deposit for our own place, judging by this most recent mini-boom the goalposts are moving faster than our savings, it's not certain we'll ever get there.
I was a real live for today / the weekend / next Holiday type of person, I was earning a small fortune for someone my age, but whilst my friends bought houses / flats when they were comparably cheap by today's standards I rented, even though I could have bought a place with a 100% or more mortgage for about what I was paying in rent.
I was constantly overdrawn and generally scrambling around for food / fuel money a week before payday even though I'd been out all weekend, and every weekend before.
I was getting annual bonuses between 7k and 20k depending on what type of year I was having, but don't have a thing to show for them, I would guess that my total bonus pot for the decade I worked in the industry would be 70k-ish, bearing in mind that most of the houses my Mates bought in their early 20's cost around the 100k mark and I didn't need any of this money for day-to-day living I could have been living in my own place with 70% equity or so by the age of 30, but when it all went to s
t and I got made redundant at 31 (with a tax free 15k pay-off) I was back living with my Folks 3 months later. I kick myself now 5 years later, I'm married with a child, I've got a pretty good job, but the bonuses are a thing of the past and even though we both work full time we're struggling to save for the deposit for our own place, judging by this most recent mini-boom the goalposts are moving faster than our savings, it's not certain we'll ever get there.
My wife tells a great story about her late father, who was a greengrocer. When she was about 7, she asked him how the shop made money. He explained how he got up early, went to market, bought stuff in bulk at a lower price, sold it in smaller amounts to individual customers at a marked up price.
She she handed over her 50p savings (10 shillings back then I guess) and asked him to buy something at market and sell it at a profit for her.
So he took her money and bought her a tray of lettuce, that he would sell in the shop and when sold, she would get 15 shillings (75p).
At the end of the week he came back from work and she said "where's my money". And he gave her 5 shillings and about 150 lettuces. Said the weather hadn't been great, salad hadn't sold well that week. When she started crying her said it served her right, expecting someone else to do the work for her benefit, if she wanted to make money she had to knuckle down herself!
She got her revenge though. Next week she went blackberry picking, took them outside his shop and started selling them undercutting his price. In the end he had to buy them off her, and they'd come out of his garden!!!
No one puts one over on my wife! She's as shrewd as they come.
She she handed over her 50p savings (10 shillings back then I guess) and asked him to buy something at market and sell it at a profit for her.
So he took her money and bought her a tray of lettuce, that he would sell in the shop and when sold, she would get 15 shillings (75p).
At the end of the week he came back from work and she said "where's my money". And he gave her 5 shillings and about 150 lettuces. Said the weather hadn't been great, salad hadn't sold well that week. When she started crying her said it served her right, expecting someone else to do the work for her benefit, if she wanted to make money she had to knuckle down herself!
She got her revenge though. Next week she went blackberry picking, took them outside his shop and started selling them undercutting his price. In the end he had to buy them off her, and they'd come out of his garden!!!
No one puts one over on my wife! She's as shrewd as they come.
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