Growing up being told to save when everyone else is spending

I have grown up being very aware of the importance of money. My Dad is a banker and I have had conversations about money with him from as far back as I can remember. From a young age I had bank accounts set up in my name. By the age of 13 I had my own eftpos card. Growing up I got pocket money on and off and did chores for money as well. Something I did as a young child which now my younger sister does is create my own chores. I preferred doing this over the chores my parents told me to do because it was something I had come up with. Watching my younger sister grow up always making purchases online is very different to the experience I had with money growing up. If I wanted to buy something at her age I had to take money from my piggy bank and go into the store to purchase it.

Learning to Work

Since I was 14 I have had many part time jobs in the hospitality industry which allowed me to be more independent and have control over my money and what I was spending it on. It was also the first time I had a regular steady stream of income, although it was low. When I was 15 my parents gave me shares in a New Zealand electricity company called Mighty River Shares. At the time it wasn’t something that I wanted. Overtime I have come to appreciate it now that the values of the shares have risen. I have done a lot of babysitting over the years which has helped me to understand the value of money because I am always paid in cash. I have babysat my cousins for my Aunties and Uncles and have been paid in forms other than money such as being given a treat from the sweet store. I prefer cash.

My grandparents have always given me money for birthdays and when I have achieved excellent results in school. I recently found out my grandfather had a bank account for me in my name and I chose to use the money to pay off some of my university fees instead of spend it on something new I really wanted. I didn’t qualify for a government loan when applying to university, which means that I have to pay all my fees upfront and in full. Because I have a very low source of income my parents pay for my university fees and I am in debt to them. I see this as a good thing because when I graduate university I will have no formal debt and the money I pay to my parents isn’t accumulating interest. However, my parents have put a time limit on when I have to pay them the money by which is also why I prioritise saving money instead of spending.

Spending Thoughtfully

Where I am from in New Zealand all of my friends moved out of home as soon as they finished high school. However, in Sydney it is much more difficult and expensive to buy or rent which is why I still live at home. I am well aware that in the next couple of years my parents will start charging me rent as I have seen them do it to my older sister. Paying rent to live at home doesn’t exactly sit well with me. However, I do like the idea of contributing money to the weekly grocery shopping or the water and electricity bills as opposed to paying rent to sleep in my own bed.

In high school I did general maths as a subject where I learnt financial concepts such as simple and compound interest which I have used in my everyday life. I feel as though the financial education I have been taught in school and university has been adequate however I credit most of my financial knowledge to my parents and family. I have seen with many of my friends poor financial choices due to not being taught by their parents and having little guidance in school. We are living in a time where we are told to spend constantly in order to have the latest products and keep up with the latest trends.

This spending has seen some of my friends living pay check by check and having little to no savings. I have always had more money in my savings account even though I am living in a time where I am told to spend. I feel more accomplished watching my savings grow than watching money go out of my account when I purchase things. However it is hard telling yourself to save when you want to go out for lunch with your friends everyday or buy a new outfit. I believe it’s all about a balance and giving yourself a weekly budget and sticking to it.

How Digital Solutions Help me with Money

Only last year did I download a bank app and I was able to track my income and expenses. Doing this has helped me to build and maintain good habits and stay on top of my finances. Technology has helped me to see my money visually. In the past I knew I had bank accounts and a card to pay for things with but until I received a bank statement in the mail I was unable to make the connection with the money I had actually spent. Technology helps solve this problem. Technology can help transform how my friends — and our younger siblings — learn about money. And when kids are educated about money, I think we are all better off.

Thanks for reading. I am currently working at Pennybox, a company dedicated to teaching kids about money and making it easier for children to learn how to earn, save, and be thoughtful about money. We have a beta of our product which you can access here.