17yo starting out

geoffw

geoffw

My 17yo daughter has been listening to me for a while about IPs, and I didn't ever think she got the message.

But now (having only just turned 17), she's asking about how it might be possible for her.

She is in year 11, and wants to do well in year 12- in a school which has very high demands. Working during holidays is a definite possibility (Perhaps even Subway :D ); working during school times might not be. Pay would be basic.

Starting price for a 1BR unit in Queanbeyan would be around $100K.

She is wondering if a savings plan and FHOG could help her.

She would not be able to show servicibility without our support in some way; she could not get FHOG and have it let out (at least initially).

Kristine's children were able to buy something @18, but (from memory) they were at least working?

It's a big ask with a small possibility (without a lot of help from us- and that help may not be helpful in the longer run).
 
Savings habit, yes.

But I don't know how that can happen (or even IF that can happenn).

Yadreamin- I'm not quite sure about the proud yet. She's looking at the end results, not the difficult path first. She wants to imitate Dad when he's been successful. But obviously wants to avoid all the things he's done wrong :D
 
Hi Geoff

My children were only working at Bi-Lo part-time, a couple of shifts each week and saving from those earnings.

No: 2 Son was working full time, but as a Retail Trainee, on age rates and on only 80% of the age rates as he was a Trainee and attended school one day each week and he didn't get paid for that day.

So, at 17, if she has a regular job and saves eg $100 each week, with no missed weeks, she will be able to show a steady savings pattern and the ability to sustain a committment. Of course, she will also have to show she can service the debt when she does borrow, but the most important factor is the Funds to Complete. If she has $5,000 saved up that will help but there are other circumstances which are a bit complicated to go into here, however by planning now she - and you - can prepare ahead of time for a successful outcome.

It really is very straightforward, but most people are suspicious of success and want it to be complicated.

Believe me, it isn't. She can achieve her first property with relative ease but she must, first and foremost, develop and demonstrate a savings pattern.

Alternatively, and this is second best, she can concentrate on getting a full time job six months prior to her birthday. Or both, but if she intends to continue at school the savings pattern will be the strongest tool.

Cheers

Kristine
 
have you considered starting her in shares or lpt for a year.

would get her interested in researching the economy and company reports
she could dollar cost average into investments too. good savings strategy.
once she gets a few divs that might motivate.

at least it will occupy head space with something else apart from fashion and cool.

of course, shares could jump around a bit in the next 12 months too...and scare the hell out of her....maybe a listed property trust is more prudent.
 
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How wonderful Geoff. The world is her oyster, and she obviously has a sensible head on her shoulders. Just wish I'd had that at 17.

I agree with those who suggest a savings plan. Can't go wrong with that as a beginning. Shares might also be worth considering. The market is low at present, and being conservative with the blue chips, might help her nudge the savings plan along.

Can we give her some kudos...just for thinking in the right direction to start with.:D
 
I also agree with the importance of a saving plan.

We started saving in February this year- I used to be a spender not a saver, so moving from saving nothing to saving 250 a fortnight was a big step for me/(us).

As time went on we started saving more and more until now we saving at least 50% of our income.. we had to LEARN to save with a bigger goal in mind.

Saving really teaches you discipline with your money- you learn to say no to those consumer temptations and I think its a perfect starting point if you want to buy a house.. especially if the IP will be taking out $50 a week from her pocket for the rest of her life as well..

Good luck :)
 
i just felt a flush or warmth for her ... she'll do it dad.

i know you want her to learn by herself but, once she has shown a good savings plan (perhaps 12 months) could you lend her a little boast to get her over the line - like cover the stamp duty and legals?
 
How about a small savings plan plus a dollar for dollar match by Papa?

I think that's a good way for you to help, but not simply give them something for nothing.
 
make her read SS over and over and over... :p

give her some subway shifts.. just make sure she doesn't get the "my daddy owns it, so im special" attitude..
if i recall, the 17yos where i worked were getting 9-odd bucks an hour ?
 
geoffw said:
She is in year 11, and wants to do well in year 12- in a school which has very high demands. Working during holidays is a definite possibility (Perhaps even Subway ); working during school times might not be. Pay would be basic.
Click to expand...

Working while you are at school i think is good as you can learn a lot about the following; self discipline, working under a boss/manager and with other employees, understanding that money doesn't grow on trees, liaising with customers (if applicable), hygiene (if applicable i.e. subway), dealing with money, etc. Some of these items you can learn at school or from your parents, but you will always learn some skills from the job you perform. I know i did.

That said, i think year 12 is quite important and i wouldn't encourage my children (none at present) to work more than 1 day during this busy year based on my own experience with year 12 workload. School holidays should definitely be an opportunity to get those hours up, but again not everyday as they have many more years of working 5 days a week, until they reach financial independence of course!

I think having to pay for some of the things you want, earning your own money and setting financial goals early on would teach enough about budgeting/saving to be adequate. Attempting to save for an IP at this early age, while a good idea seems a little silly to me, especially if your going to help so much with serviceability , no lesson learnt there.

Encourage her to save for a holiday as a reward for when she finishes year 12. When she hits uni, then she can work more and set her sights on her first IP i would say and start reading somersoft.

TheCamel said:
make her read SS over and over and over...
Click to expand...
Wait until she is at uni, im sure she already has plenty of reading for school.
 
Geoff, it is certainly acheivable. My eldest daughter is the same age. She has been working part-time since she was 13 & she has banked half her wage each week since. This was the requirement by me, to allow her to get a job. She has around $10k now. At first she didn't like putting her money away, but now she wants an update every week on how much is in her account.

Like your daughter, her aim is to buy a property when she turns 18. Her biggest problem with this is that she works at Go-Lo & she gets minimal shifts (4-10 hrs pw). She will turn 18 in September next year & is hoping to be working full time before Christmas next year. If she is successful with this, then I don't see why she can't buy something 6mths after that.:D

Go the young guns!!:D
 
skater said:
Like your daughter, her aim is to buy a property when she turns 18. Her biggest problem with this is that she works at Go-Lo & she gets minimal shifts (4-10 hrs pw). She will turn 18 in September next year & is hoping to be working full time before Christmas next year.
Click to expand...

No plans for further study?
 
Hi
Well done Geoff, and apprentice :)
A couple of thoughts, re-stating some already mentioned.
I was just involved in interviews in the last 2 months for 3 new retail stores (now opened)
It was amazing to see the difference in applications/resumes etc, but I can say without hesitation that the young ones with a proven track record of doing the extra work, school plus casual work, stood out in many ways, most without need to mention, but I will anyway.
Proven track record, teamwork, confidence, ability to handle money, presentation, ability to work to time frame/rosters/workload, what the heck, the list goes on.
Some casuals need the time to study, fine. Some don't, fine.
But the great thing to see in most cases is the way they change and realize what savings can start to achieve/buy, at an early age.
By the way, did any body see the interview with a teacher of Harry Kewell, who apparently had a polite go at Harry about his study/ exam results, (Harry now earns between over $2oM per year. :D )

jahn
 
jahn said:
By the way, did any body see the interview with a teacher of Harry Kewell, who apparently had a polite go at Harry about his study/ exam results, (Harry now earns between over $2oM per year. :D )

jahn
Click to expand...

and for every Harry, there are 1,000,000 neverbe Harry's making 1000 times less :)
 
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