Parental influences on investing?

[TheCamel]

my parents are in influence in that i don't ever want to be like them, in terms of money, or in terms of their relationship with each other.
In many ways, I also don't want to be like their relationship with us kids.

In some ways, I do though.

It was however, a desire for more money myself, that made me get a job at 14. I just wish i'd been wiser with what i've done with my money over the past 10 years.

 

[wish-ga]

Parental influence more something to overcome than to emulate.

I mean no disrespect, there is nothing financially disastrous my mum did. I admire that she prioritised really well to provide for me but I am far more informed and knowledgeable (I think those go hand in hand)

I am proud I make decisions on what I have researched instead of doing what someone else tells me.

Case in point; mum & I both had an opportunity to buy $500 in shares. I bought 'em and accepted they weren't going to be life changing but what the hey. Mum wouldn't do anything unless she asked a male accountant friend what she should do. Hummed and hahed and regretted missing out. So interesting. culture/generation/personality play a part in our differences I guess (sorry to bore you)

 

[Dazz]

Case in point; mum & I both had an opportunity to buy $500 in shares. I bought 'em and accepted they weren't going to be life changing but what the hey. Mum wouldn't do anything unless she asked a male accountant friend what she should do.

How much do reckon is a fair thing to charge for "advising" on this transaction ??

Of course, she would have rightly been advised to seek professional independent legal and financial planning advice before proceeding with any action.

I reckon to cover all the bases as is always recommended by the professional bodies, I reckon she could have easily burned 3 or 4K on professional fees before being properly advised of all the risks and other attributes.

800% fees - now I'm liking it.....kaching kaching.

This highlights the lunancy of the blanket advice "advice" we all commonly receive as good prudent advice. Of course, if you read the fine print in 1 font down the bottom of the 'advisers' disclaimer clauses, you'll notice they don't take responsibility for it anyway....you're paddling your own canoe in all cases.

At some point in your life - you need to shoulder all of the responsibility and step up to the plate.

Sorry - in rant mode.

 

[Pushka]

My parents were of little influence to me. My brother has turned out just like them (ie put the money in the bank and have no debt even if it is good debt), whereas my partner and I have multiple properties and trade in shares, and also multiple, but good debt. If I ever dare talk about shares (but I do know better than to do that!) my brother looks at me like I am crazy gambling away the money!

My parents could see the value of investing, they just could not seem to work out how to get there. Anyways, I think my Dad would have been proud of what we have done because we broke the mold. Now, as for my kids; one wants to be an Investment Banker and the other is just itching to get into his own share portfolio!

 

[firstmillion]

How about the other way round ? It seems my parents have had more faith in properties after i had been doing it for 3 years.

 

[Pushka]

How about the other way round ? It seems my parents have had more faith in properties after i had been doing it for 3 years.

Yes, I can see that happening too!

 

[wish-ga]

Daz I am not sure what you are saying? That I am wrong to think $500 is not such a big risk and my mum was right to be so cautious and should have paid fees for advice? My mum's accountant friend and share investor of course would not have charged her for his take on the deal.

I found it interesting the diff between my mum and I is all. I acted on my best understanding but my mum was less willing to act without a nod from peer but I am not sure what you are saying?

 

[JFisher]

My father was an avid investor...Tabcorp and the local pub were his specialty. Fortunately for us our mother was a teetotaller and while she is a very intelligent woman (nursing admin, natural therapist, massuese etc etc) she had the drive to invest but not the time or resources to research her options. She bought a trotter or pacer which died in a freak accident in it's stables. She bought shares in Pine Trees, macadamia nuts and these were bought out by an olive grove group and I don't know how well they performed but these schemes were common 25 years ago when I was younger; people actually came to your door selling the idea. The only time she was offered a house (double block in the street next to our childhood home) dad scoffed and told her that it was a waste of money Oh the irony.

I must say that my dad doesn't drink or smoke anymore (having a stroke and a heart attack at the same time can do that!) but he still likes to spend money on the horses. It's nice having a Dad around now but I am certainly glad I didn't pursue his interests!

 

[Dazz]

Daz I am not sure what you are saying?

No I wasn't having a go at you or your Mum, sorry if it came across that way.

I'd been talking to a friend who is a FA that day, and my chat with him over lunch just highlighted the inconsistency of what they actually do vs what they charge. Terms like 'wounded bulls' and 'bugger all' spring to mind. Thought I'd have a rant, as I have a want to do occassionally.....good for the soul during stressful moments.

Please don't take my comments as a sleight against yourself or your Mum. That wasn't the intent.

 

[pursefattener]

My folks were not really investors but they did build a pretty solid business along their way . We did talk about money at the table but I would not say we were a liberal family...

They were essentially good savers and I think they freeholded all the business assets in the early 80's . My Mum was more interested in financial matters than my Dad . I used to discuss what I was investing in when I was in my early 20's but these days I try not to bring up investment detail too much .

Investing in shares was far far too risky for them , still is . Now they are in their mid 60's with about 2m in assets + an unknown amount of cash in the bank at interest....

I suppose to some people that is quite abit but these days with health care in old age and all that I would not expect to inherit much between my brother and I . If anything..

I think I had a pretty good start at around 1987 when "Making Money Made Simple " was first published . I was 19 then and got one of the first copys . After I read it a couple of times I gave it to my Mum to read and we would talk about it . Strategise and scheme etc...
At that time there were not really many investing books around and things like seminars and financial planners were scarce .

I think that book had a greater influence on me than my folks ever did .

Shawn

 

[kathryn d]

My parents owned their home.They had a greenhouse operation for years.Never owned IP's.
We would never to permitted to ask someone how much they paid for a car or property. That was considered rude.
Even though I know it's not, when anyone now asks how much I paid for something (in person) I think my heart skips a beat.
My oldest brother was my biggest influence.Many years ago he had a few IP's, which he self managed.Don't think he liked it.He eventually went into business developments but along the way became a millionaire.He taught me a lot in my early years about tax reduction etc.
Our kids ask how much we pay for properties and we openly tell them. They see all the long hours and hard work.Sometimes they ask if it's worth it. We smile and say it will all pay off soon.

 

[burty85]

my oldies all ways on my back to buy a house and stop pissing my money away every weekend at the pub and on my car... so after a few years i did buy my house at the age of 21... now i tell them that i want to buy more and start investing, they not really being supportive about the hole thing even tho the pressed the issue of buying for so many yrs...mum and dad payed out there house many yrs go and have never invested back into realestate, i think they are not as keen as they havent done it earlier....

 

[Debt Junkie]

Did my parents influence my investing? Yes and no.

Mum ran the show as far as money was concerned, dad never got a word in, and wisely kept his mouth shut ...

Mum influenced my savings. I don't know how but she used to be able to save money - with four kids, and with dad, a teacher, on a single wage. Has something to do with her being a depression era child, I think.

For the same reason, she has always been unable to part easily with that cash, and still has a lot of trouble investing it. Her idea of diversification is to put her cash in lots of different banks, in case one crashes.

With difficulty, I've convinced her to move dad's super from a fixed interest accumulation fund to balanced. It took 9 months, and her watching $385K go to $393K when it could have done so much more.

So I've learned that no risk can bring no returns ....

She did buy an investment property about fifteen years ago and paid it off - principal and interest loan. She should have bought more, and does the rounds of the open houses at least once a month - but everything's too expensive.

From her I learned that things will always seem more expensive. I also learned that shopping for property does nothing for you if you don't buy!

Since I accompanied her on every trip, I also know every property in the surrounding six suburbs and how often it has been sold, if it was ever a display home, where it was in the 'great flood', and how well kept it appeared on prior viewings, etc

So, yes and no to the parental influence question ...

DJ

 

[warrioress]

My parents (immigrants) are investors in both properties and shares, and whilst I would have loved that they spoke more about their successes and failures with us kids, I couldn't have had better teachers.

My parents instilled a good work ethic in myself which enabled me to invest at a young age. Also, being the youngest in my family and having siblings who are very academic and good careers, I knew that I was never going to earn the kind of money they were/are. I knew there was a way to be rich without a 'proper' job.

Thanks Mum & Dad

 

[BayView]

My parents heavily influenced my path in life today;
They were hopeless with money, retired broke.
I never wanted to be like them (even though I love them).
Self education and fear of ending up like them.

I have also started brainwashing my 6 year old son.

Every week he gets $5 pocket money. I give him five $1 bills (we are in the USA). He has to give me back one of them, he can spend the other $4 on whatever he likes.

I ask him; "what is the $1 dollar for?"

He says; "It's savings for my my house!"

The $1 goes into a separate high interest account for him for now, he'll get it as a deposit cheque when he's 18.

Job done.

 

[Debt Junkie]

I give him five $1 bills (we are in the USA). He has to give me back one of them, he can spend the other $4 on whatever he likes.

I think that's bloody fantastic. Starting the habit of deferred gratification at that age - by the time he gets to 18 he'll understand and see the value of it!

I can think of quite a few people I know who would benefit from learning it now ...

Someone should write a book on sneaky ways to teach your kids about money. Unless that's already been done. I don't have kids so I don't really hang out in that section of bookstores

DJ

 

[BayView]

I think that's bloody fantastic. Starting the habit of deferred gratification at that age - by the time he gets to 18 he'll understand and see the value of it!

I can think of quite a few people I know who would benefit from learning it now ...

Someone should write a book on sneaky ways to teach your kids about money. Unless that's already been done. I don't have kids so I don't really hang out in that section of bookstores

DJ

I actually pinched the idea (or a slightly different version of) from an interview with John D. Rockefeller jnr. He was saying that he and his brothers were taught this stuff by their Dad; John snr, when they were 6 or 7. And this is a family where the kids will never need to work in their lives at all. Good money habits.

Sadly DJ,

there is not a lot of stuff for kids on this. Thinking from a publisher's mindset, which is to make money from selling books, they probably don't see a commercial viability for this type of book.

I mean; most of the parents' eyes glaze over at the thought of a savings plan or the word "budget", so what hope have the kids got of their parents reading it to them.

Maybe there's a chance when the kids reach about 10 or so; they can read on their own and have stopped listening to their parents!

Anything on the subject of money for kids is focused on saving money to buy crap and become a good comsumer, not an investor. They still hand out those plastic money boxes at school to encourage kids to save. This is a start, but they are being trained to save for doodads, not assets. Big difference, and we all know what the result is of sticking your cash in a savings account.

Our boy's cash is in an ING account for now, but as soon as there is a bit of a decent balance it will be redirected to a managed fund or something like that; haven't decided yet.

But, you've given me the idea (the book) and now I've got something else to do besides sitting here wearing out my index fingers (two-finger typist) talking to you lot (and arguing with YM and HG). I needed a new project.

 

[s_t]

So you've taught him he is free to spend 80% of his income on whatever he feels like buying?

I never got any pocket/spending money, and will probably go that way with my kids too.

My parents heavily influenced my path in life today;
They were hopeless with money, retired broke.
I never wanted to be like them (even though I love them).
Self education and fear of ending up like them.

I have also started brainwashing my 6 year old son.

Every week he gets $5 pocket money. I give him five $1 bills (we are in the USA). He has to give me back one of them, he can spend the other $4 on whatever he likes.

I ask him; "what is the $1 dollar for?"

He says; "It's savings for my my house!"

The $1 goes into a separate high interest account for him for now, he'll get it as a deposit cheque when he's 18.

Job done.

 

[BayView]

I'm teaching him to pay himself first (savings put aside for investment only). I'm hoping that the 20% figure will stick in his mind forever.

Has anyone read "The Richest Man in Babylon"? In that book, the moral of the story was to put aside only 10% for investment and you will become wealthy.

He can spend the 80% on whatever he needs, but the 20% must be kept aside first.

When he's a bit older and able to get a job and the real world of bills starts, then I'll work on the budgeting a bit more so the bills get paid out of the 80%, and the rest is his to burn.

And, he will be getting a part-time job when he's in school to put more of it into practice, that's for sure. No handouts. I think all kids need a work ethic, but they also need a good money habit (a bit of investing knowledge won't go astray either!)

Once the habit is formed; the rest is easy.

 

[skater]

I do a similar thing with my girls. The eldest has now turned 18, but from when she first started her first part-time job, she had to put half aside in a high interest account. She has a nice little nest egg sitting there now.