We can learn a lot from other cultures about teaching our kids to value money and savings. Ben Kingsley and Bryce Holdaway join us to talk about their new book and what they believe is the secret (or secrets) to making money simple again.
Kevin: Good friends of ours Bryce Holdaway and Ben Kingsley have launched another book. Hey guys, how are you doing?
Ben: Good day Kevin.
Bryce: Hi Kevin, how's it going?
Kevin: Yeah good. Good to be talking to you again and of course Bryce and Ben, are well known for their first book "The Armchair Guide to Property Investing" which fits really nicely with their podcast "The Property Couch". So guys congratulations, nice to have you on the show. I want to talk about your new book which is called "Make Money Simple Again". I guess the best way to launch into this Ben, is cause I think there's a good message in here for families and particularly kids; how we should be educating our kids?
Ben: Yeah Kevin, I think the actual money management system that we're promoting is a top down system. It's really easy money management solution for households to implement. So it works at all levels, whether you're mature age or right down to adolescent. This whole money management system is great, so we refer to children and the way we are teaching them the value of money. What it does is it helps them to plan the years spending that they're going to do and then tries to ensure that they trap the surplus. But the other important thing that we're noticing in some feedback we're getting is, and this is what we're sort of teaching parents and kids to do is, don't have a separate money management solution for the children, why not put that money into an offset account.
Ben: So ultimately the family is benefiting because for kids to get into the property market into the future and to save up. Yes, it's important for them to understand the value of needs and wants, and to realise the value of money. But we can set up a separate spreadsheet really easily, to track the money that they put into the parents offset. And then all of a sudden the parents will then feel committed to making sure that they may be go security guarantee or help the kids get into the property market. We're seeing the Europeans and the Chinese have been doing this for hundreds, if not thousands of years, and I think we need to catch up to that approach. Where we're sort of looking at family money, rather than just individual money.
Kevin: Yeah, you make a great point there Ben, and I think you're very right we've looked at this as individuals. Almost generation to generation, whereas one generation can help the next. It always gives them a leg up, doesn't it?
Ben: Yeah it does, and I think that the message here in terms of money has been a bit of taboo topic in many households in many generations. And I think with the advent of digital money and immediacy in terms of how we can track it and look after it. That conversation needs to be discussed, it's the biggest form of argument in any household. If we can get in control of our money, then ultimately help each other, we do see that generational family wealth through some of the high nett worth families. These kids are basically trained and prepped in terms of how to look after the family estate and I can't see why that couldn't be the case for everyday mum and dad Australians to be able to get into that situation.
Kevin: Yeah Bryce I'd love to hear your take on this too, cause young man, young family and what you're talking to your kids about. But before we do, of course I've introduced to our audience on many occasions and that great series that you did Foxtels Lifestyle Channel "Location, Location Australia" is still running, I still see it from time. You're looking remarkably young still though Bryce?
Bryce: Yeah, I've seemed to have stumbled across the cure for ageing. Or Ben reckons I'm starting to get a bit older since I've been hanging out with him.
Kevin: Yeah. It rubs off you reckon? Hey can we talk about your new series? Or is that not for publication?
Bryce: I've just finished filming a series called "Escape from the City". If any ones familiar with the UK version called "Escape to the Country". No one in Australia escapes to the Country so we just Escape from the City. So it's been fun being all around the country, been up and down the East Coast and for anyone who likes to sit back with a glass of red on their couch after a busy day at work and they wanna watch other peoples property journeys. It's really gonna fill a nice space for them.
Kevin: Yeah. Well that's what we do all the time mate. Hey Bryce, can I just get your take before we have to leave, we're just about out of time. Just quickly, is it harder do you think for kids nowadays to succeed, to get property and become successful financially?
Bryce: I think to a certain extent it is, because the prices have gone pretty high. But I think there's a couple of mitigating factors that are working against younger people. One is, when I grew up Kevin, you and Ben, the idea of getting into debt was a real taboo; it was pay cash for everything, don't get into debt whereas now I think it's become the norm for people to have credit card debt and to Tap and Go, and to really be disconnected from the decision that they're making to purchase from the monthly credit card statement at the end of the month. So I think that is working against young people, young people who don't get into credit card debt are weird. And I say weird in a good way, but for most people they'd be thinking weird in a bad way.
Bryce: And secondly I think because of that sort of "Must have things now approach" that you and I and Ben weren't exposed to when we were young, means that people aren't prepared to get on the property ladder at the very first run, they really wanna take a big run up and get on the fourth and fifth run on the ladder before they can. I think couple of those things are working against them, but the bottom line is you talk to anyone in any generation, it was always hard to get their first home.
Kevin: Yeah. Okay guys I'm just gonna leave it there but thank you very much for your time. All the best for the book it's called "Make Money Simple Again", my guests have been Bryce Holdaway and Ben Kingsley also from Empower Wealth. Gentlemen thank you, all the best for the book and look forward to seeing you on telly real soon, Bryce?
Bryce: Thanks for the chat Kevin.
Ben: Thanks Kevin.