Ed Warner, chairman of Panmure Gordon, on ''What we fail to teach our kids about money?''

Written by Ed Warner Wednesday, 19 October 2011 13:20
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If you look after the pennies the pounds won't simply look after themselves.

In fact pounds are pesky critters who demand constant and rather careful attention, much like a rare orchid, exotic pet or mewling child. Starve them of attention and in time you'll discover that a disease called inflation has ravaged them so that where once your stock of pounds might have secured you a place on the bottom rung of the housing ladder it now won't stretch to a heavy duty night out with your mates. Conversely, a surfeit of attention will like as not suck you into a vortex of despair as transaction costs and trading losses eat into your stash like a ravenous beast who's particularly partial to crisp folding stuff (wise up kiddo, nobody but nobody beats the market).

So remember your Goldilocks - not too cold, not too hot.

Show a little deference, but don't be too eager.

Think of your relationship with money just as you would a long term romance - one that you wouldn't mind lasting a lifetime. As in any affair of the heart, you'll make mistakes that crush your spirit. But stick with it and you've as much chance as anyone of making it pay off over the long haul.

''What we fail to teach our kids about money'' by Andy Golding and Annie Shaw will be published by Searching Finance in December 2011.

Last modified on Thursday, 20 October 2011 07:17

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