It’s Never Too Early To Begin Teaching Children About Finance
Patricia Saputo talks about her strategy for teaching her children about finance at an early age.
I do what I call the wallet system, that since they were young, they had so much each month and we divided into four wallets so they knew you didn’t just have money to spend, that it went into a wealth wallet, a plan wallet, education, they have to invest in themselves, fun, they can spend and have fun on movies, whatever, and philanthropy, you have to give back. So they already knew they had to take their money and divide it whether it was Christmas money, birthday money, and as they’re getting older, now there’s another fund called the car fund, cause obviously now having cars, you need to spend on insurance, registration, gas and whatnot and eventually if they move out there’s your house fund, exactly. So that, when they’re earning money, they know that they have to divide it, so no different than a business, yes you get an income, that income is what are your expenses, and you have to know then how those expenses get divided. So they already have an idea of, yes, you have an income, you have expenses, so that’s kind of innate in their minds, so that when their doing it for a business, they already have that, so it’s not the first thing, because I think they already have the background of it, because they’ve been kind of learning about it as they’re growing, and just the concept of, I just throw around as we’re having dinner, it’s like, somebody went into a business and thought they’d make money, I’ll use a hypothetical situation, do you think that’s a good business to get into? So they kind of have an idea of the numbers and calculations and whatever. So that if they’re going to get into the business, I don’t think that’s the first thing they would do, I think they would need to know, whatever. In our case, we don’t have other existing businesses just yet, it’s really just the Saputo Inc. but because it’s public, there’s really not a space for children to actually work there unless they apply like everybody else, and they have to be qualified for the job. So it’s not there that you’re going to go to get your summer job, basically. So in the other businesses, well right now like I said, there aren’t any other businesses, so if they want to create something, then how are we going to help them create that business and get them to know about the financials and know what’s a good investment or not a good investment.