Effie Zahos from Money Magazine says she is trying teach her kids the value of money and the power of compound interest.

Property identity and CEO of McGrath Real Estate, John McGrath, adds to the topic of how to educate kids about investing in property and the power of money by sharing his experiences growing up in a family where it wasn’t that important. He sought the advice of mentors outside his family circle.

Executive Chairman and Founder of Aussie Home Loans, John Symond, says kids need to appreciate that money doesn’t grow on trees. He talks about the advice he received from his father that no doubt shaped his thoughts.

Michael Yardney talks about the lessons he was taught by his father and how he has educated his children about investing. Michael says that his father’s plan was, like many people, to get rich by winning the lottery.

As well as talking to us about the topic of educating our children about investing and finance, our feature guest Ken Raiss says he understands the importance of discussing wealth at home as part of educating them that it is not an evil word. Ken also thinks we should share our adult finance journey with the kids as part of their education.

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Transcripts:
Don't gamble on a Lotto win - Michael Yardney
Kevin:  Let’s set the scene for this week’s show because we’re going to canvas the thoughts of a number of people – as many as we can get through in the show, anyway – about the sorts of advice you should be giving your kids now about money and about property and investing generally and probably in fairness, about life. This is a subject that I’ve discussed many times with my first guest Michael Yardney from Metropole Property Strategists.

Good day, Michael.

Michael:  Hello, Kevin.

Kevin:  I know you and I have talked about the importance of the conversations around the table as we’re growing up and getting kids into the understanding about what they should be doing with money and investment generally. Michael, what were you taught?

Michael:  I remember my father’s financial plan. Every Saturday morning, he would sit in the kitchen having his cigarettes and a black coffee, and he’d write out this list of things. I asked him, ‘What is it?” and he said, “That’s what I’m going to spend my money on when I win the lottery.” Because every Saturday night, he took a lottery ticket. He always won enough to buy a few more tickets but never the big prize.

So his financial plan was winning the lottery, Kevin, and I guess I learned that that’s not the right way to do it.

Kevin:  Certainly. Many people in fact do that, Michael. Many people are guilty of that. What sort of language should we be using with our children?

Michael:  First of all, I think you should be talking about money because a lot of people don’t, and then the things that they do say are often the wrong things, and that’s what sets the scene because you’re not born knowing how to do money and your early mentors are your parents. To be honest, most of our parents weren’t wealthy and they’ve learned their bad money habits from their parents.

So I think one should be talking openly about money, about budgeting, about saving, about not taking on too much credit card debt, but also the positive things about rich people aren’t dirty, greedy robbers, but they should be proud of other peoples’ successes and if somebody else can achieve it, so can you, Kevin.

Kevin:  Michael, I know that you’ve studied this in particular and written books about it, and I know you’ve done many