Its early October, the autumn leaves are just starting to fall, Pumpkin harvesting are just starting for Halloween end of the month. Black Monday shopping has not even started and yet Costco have already started their Christmas marketing and the next big Christmas toys on display. Simply to fuel kids minds that they should start their Xmas list to Santa as soon as they can. Modern day parents always give in and simply buy everything! Have you tried calculating how much in total parents, grandparents, auntie and uncles spend on presents for a single child in this modern 2017? The answer is…….At least $1000.00!
Living in Europe and North America, children gets presents every Christmas at a large scale regardless of the economic cycle. The price of gifts and presents are getting more expensive each generation. Kids under ten are getting brand new Iphones, Ipads, Digital Wallets for games, gaming consoles, latest trendy toys in 7/10 households. As an 80’s kid myself, I remembered that every child watched the same cartoons on the same channel and the same adverts. Kids in this current generation have hundreds of different cartoons from daytime TV, Netflix, Youtube, Disney, Nickelodeon and many more. Every kid follows multiple cartoons and the number of required toys and gifts increases in a single household. If you try going on FB marketplace, Craiglist and Gumtree, the amount of good condition toy for sale are shocking. Toys which cost $50-70 can be sold at $10-15 second hand value.
I must also admit that I have had a good childhood myself. My parents always given me 85% of the stuff requested for. Joggling back my memory, all I remembered for Christmas was the family gathering, dad’s jokes, laughter, running around with my cousins. I cannot remember any of the toys I was given, simply because they were just short-term satisfaction. Looking back now, I wish my parents invested and saved that money instead. Back then
Hasbro shares were under $5 and now $95.
Disney Share were $10 and now $100.
Its very easy to look back at historical results and regret not owning such quality company stocks. Back then we didn’t have Yahoo Finance News, Bloomberg or Twitter telling us up to date information too.
I would strongly recommend parents to urge relatives and grandparents to give gifts of cash into bank or investment accounts rather than buying full price gifts which would depreciate in value once left the store. Think about it….
Let me ask you parents a question. Do you think Apple, Hasbro, Microsoft, Disney and Amazon will be around when your kids turn 18?
I don’t know the answer, but I know that these four out of five of these companies were around when I was 10, and that was almost three decades ago!
As a parent we should always educate our kids and tickle their general knowledge on Science, History, Geography and the Economics of Finance. Knowing the names of species of Dinosaur and the value of money is equally important. A simple $5 in today’s value can get 2 kids magazine or a DVD in bargain section. However the magazine is worth nothing after it comes out of the pack and the DVD is also worth less than 30 cents in a second hand shop. Value of depreciation is almost 100% in less than a week.
Let’s educate our kids on the power of appreciation of the value of money. A pack of lemons and sugar which cost $5 can make 3 jugs of lemonade which could make you $10 sales and a profit of £5 on a good day of course.
Before educating our kids on financial investment, we parents need to understand the power of money savings and turning them into investment for potential growth. I personally spend an average of 5-8 hours a week reading and researching on investment. My intention is to pass the knowledge to them when my kids turn 12, I will provide 25% funds for their control. This way they can try investment at their own risk. The sooner they learn and make mistakes the more they will learn.
Final words; To pass valuable knowledge to the next generations, first we have to learn and experience it first hand.