Bonds explained: a seven year old asks the questions we are too embarrassed to ask
Very few children get any meaningful financial education. Yet it is so important for everyday life. From budgeting to saving, to simply avoiding getting into debt, there are many basic lessons that can help people build a better financial future.
But talking to young children about money isn’t easy, especially if they are ‘pre-pocket money age’. In my experience they have very little understanding about it, other than mummy and daddy pay for things they want if they behave themselves and the tooth fairy gives them coins in exchange for baby teeth.
Yes, you can grab their attention with a few startling facts: did you know, for example, that if you had borrowed £100 four years ago from a pay day loan company charging 5,853% interest and not paid it back, your debt would be £1.25 billion today?*! But I expect most eyes would glaze over relatively quickly – opening Easter Eggs on YouTube having so much more appeal…..
So I decided have a bit of fun. Enlisting the help of my seven year old son, a very creative marketing lady called Lynette and Jim Leaviss, head of retail fixed interest at M&G, we made our own YouTube film, in support of Kick Start Money – an asset management industry-led initiative to invest £1 million in financial education for primary schools.
Watch Alex interview Jim about being a fund manager and investing in bonds.
*Caps were put in place to stop this kind of debt escalation… but you get our point.
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