Editorial: Never too young to learn money management

Hawke's Bay Today news editor James Ford. Photo / File

What is the saying, love makes the world go round, or is it money makes the world go round?

It's certainly debatable.

Unless you are one of the very few who have more money than they know what to do with, it can certainly feel like the latter.

A story in yesterday's Hawke's Bay Today revealed that last year our region had one of the nation's highest number of bankruptcies; a total of 144 people had to resort to bankruptcy to wipe out debts.

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Figures from credit check company CreditSimple.co.nz show while New Zealand bankruptcies dropped to a five-year low last year, Napier and Hastings were both high up the list.

Hastings had 53 bankruptcies last year, while Napier had the fourth highest number of cases nationwide, with 91 people made bankrupt.
Only Hamilton, Christchurch and Auckland had a higher number of cases than Napier.

While we don't know the details of those cases, they are still alarming statistics.

Money management does not come naturally to me, luckily my fiancee is good enough with money for the both of us.

I am guilty of spoiling my 1-year-old son, something that I feel most first-time parents are. Although that will have to stop when number two arrives in July.

But money management is something that should be focused on more, in my opinion.
I want my children to have a healthy respect for money.

It's something that can't be taught too young.
An understanding that money is a finite resource, that must be earned.

So from now on I'm making a stand.
When he innocently plucks a toy fire engine off the shelf at Kmart he'll be told he has three already.

I'm sure he'll understand…