Pape Point plan

My boys had cornered me. “Dad, we’d like to talk to you about a business idea we’ve come up with”, they said in unison. “We’re calling it … Pape Point Campground”, my eight-year-old announced.

“We could rent out the top paddock to caravanners for, say, $40 a night!” the six-year-old added.

“Oh,” I said, trying my best to remain noncommittal.

They stood there eyeballing me expectantly.

I must have twitched, because they were off like a flash.

They spent the next couple of hours huddled in their room coming up with a detailed plan for their caravan park: job titles, hours of operation, even a logo design (which they outsourced to their three-yearold sister – very sparkly).

Then they reappeared for round two of the pitch – this time with upsells:

“We could provide a rustic breakfast for $10.” (“Oh, that’s a great idea, mate!”)

“And sell them campfire wood and marshmallows, for $15.” (“Nice!”)

“And you can also give them some financial advice, Dad, for, say, $20.” (“Oh, now hang on a minute!”)

Pape Point Campground may be confined to family and friends – but still, I was impressed. Not only was their creativity in full flight, but they were full of excitement.

As a parent, I’m under no illusions: these are the good old days.

And it’s something that’s been on my mind, because I’m currently writing my next book, and it’s all about kids.

When I pitched my publisher the idea, they loved it, especially when I told them the main idea: “It’s kids teaching kids.”

And that’s where I need your help – or, specifically, your kids’ help.

I’m looking for kids to feature in my book and inspire the kids of Australia.

So, if you’ve got a Barefoot Kid who:

Has their own little business …

Has set up a stall …

Has created a product …

Or has enthusiastically done their Jam Jars at home …

Then I want to hear from you!

For the kids I choose, I’ll interview them, set them challenges, even help them learn about the sharemarket.

(And, of course, also feature them in my new book.)

I’m on a tight deadline, so – parents, guardians, friends and grandparents – please go here to apply by this Tuesday, March 22, 5pm: barefootinvestor.com/kids

Tread Your Own Path!

MY PARENTS HAVE NO IDEA

Dear Scott,

All my life I was under the impression my parents were wealthy. My father was a partner in a law firm, and there were always extravagant annual overseas trips, fancy cars, beautiful houses, antique furniture, etc. They are now 70, retired, have no super left, are on the pension, and have $120,000 of debt ($80,000 credit card, $40,000 car loan).

They used up almost every last bit of their savings, and all of their super, to buy their current home outright once my dad retired.

Yet they keep spending! They don’t seem to realise the severity of their situation. Mum still goes to the beauty salon to have all sorts of expensive procedures done. They still have two cars (one of them a Lexus SUV) despite only needing one, and now they’re going to get a reverse mortgage to release some equity from their home, just so that they can afford to live! I’m so shocked and frustrated, but I don’t know how to help them, because my dad is too proud to listen to me, and my mum is too embarrassed.

As I said, they’re only 70, and I’m afraid they’re going to end up homeless with nothing but debt that they have no way of paying off.

I’m also concerned they will be coming to me for money if they have big medical bills down the track.

While I love them and want them to be OK, I would resent throwing money at people who have always lived beyond their means while my husband and I are super-careful with our money. What should I do?

Worried Daughter

Hello Worried Daughter,

What should you do?

I think you should follow my lead. I see people doing stupid things with money all the time – it’s like I have a sixth sense for financial stupidity. Yet I have learned to resist the reflex action of going all Judge Judy on them.

Why?

Because they’re not asking for my advice, and it’s none of my goddamn business.

If people do ask for advice, I mostly tell them how great it feels to be in control, and how surprisingly easy it is to build momentum after you have a few dedicated Date Nights.

Just know this: deep-seated behavioural change is hard, especially since your parents have been doing dumb financial stuff their entire lives.

Yet for some reason my approach has worked with hundreds of thousands of people, even people like your parents.

So that’s where I’d start. Encourage them to read my book, or listen to it on a long car trip.

Will it work?

I don’t know.

Yet the one thing I know for sure is that finger-waving and shaming won’t work. Don’t let money jeopardise the most important relationships you have.

Want weekly step-by-step challenges to improve your finances? Sign up to news.com.au’s Cashed Up money challenge today

MY KID HAS NO IDEA

In 2008 I purchased a photo shop, and my parents redrew their mortgage so I could do this. It was initially $65,000, but then over a few years it built up to $120,000. I ran it successfully for a few years but, as digital media grew and prints became less popular, the business slowly went down the gurgler, and closed in 2016.

Since then I have been chipping away at the debt and it is down to $61,000, but the strain on my relationship with my dad is not great.

He gets so upset if he sees me or my partner spending money on pleasure because he thinks we should just focus on the debt. I do want the debt gone but I also don’t want to miss out on precious time to make memories with my kids. How do I get it paid quickly but still enjoy life?

Kelly to start off with, and now it’s a festering sore. If I were in your shoes I’d want to get rid of the loan from your dad as soon as humanly possible.

Can you refinance it with a traditional lender? In your situation I’d be willing to pay a higher interest rate if it meant I could save the relationship with my father.

Take this as a lesson (one your dad has probably learned by now): if you can afford it, give money away to your family with no strings attached, but don’t ever lend to (or go guarantor for) people you love.

MAKING HAY

Hi Scott,

I just want to say I’m glad you’re writing a book for kids. I have this amazing young man called Jarrah (13 years old) who works for me.

He comes once a week to help around my property, cleaning paddocks, cleaning water troughs and filling hay nets. He has worked for me a year now and it’s just an hour a week, but when I advertised the job he told me about his savings accounts.

One account is for his car, one for his house and one for spending.

Plus, if he invests money in the investment account his mum set up for him, she matches what he’s put in. I’m blown away by the solid head on young Jarrah’s shoulders! His mum is a Barefoot follower (like me) and she has educated him well. When your book is published, I’ll buy him a copy.

Hi Jan,

What an amazing young bloke! He’s exactly the kind of Barefoot kid that I want to feature in my new book.

So please go to www.barefootinvestor.com/kids

Information and opinions provided in this column are general in nature and have been prepared for educational purposes only. Always seek personal financial advice tailored to your specific needs before making financial and investment decisions

Oh God. So this was a terrible idea

We can sell wood them campfire , marshmallows and for $ 15