Mum draws up strict PlayStation 'loan contract' for sons
By Nikolina Koevska Kharoufeh |
Teaching your kids the value of money is an important lesson, and one which this mum from New Zealand is determined her two young boys will learn.
When Nicole Adams' sons, 12-year-old Jordan and nine-year-old Tawera, both requested a PlayStation recently, the mum took it as perfect opportunity for them to take responsibility for the cost of the purchase.
She and her husband agreed to purchase each boy a PlayStation after putting together a 'Loan Contract' for each.
"We teach them about loans, loan repayments, credit ratings if paid on time without drama and the serious matter of added interest and even debt collection," the mum explained on an Instagram where she posted photos of the contracts.
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Adams explained in the post that over the last few years she and her husband have been encouraging their kids to save their pocket money and their Birthday and Christmas money so they can purchase big ticket items when they have enough money to do so.
Both boys have been doing just that and have around $350 in their accounts at the moment working towards their dream of purchasing a PlayStation each. Their issue however is that the device costs $425 and one of the boys also wants a TV which is another $65.
So in an attempt to teach her boys about the responsibility of borrowing money, she decided to loan her boys the money it would take make the exciting purchases.
The agreement was set up with an official 'Loan Contract' which the mum put together herself, that she requested her boys sign so that they understood the seriousness of a loan.
"At this stage the boys are in debt with the understanding that for the next x amount of weeks they will be doing their chores to pay off their loan repayments. We explained the further details about interest with loans but decided against including the interest in their contracts," she explained.
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After signing the contract, the boys went with their parents to purchase the new PlayStations and are now slowly playing their loans off while enjoying the device.
"Just last night Tawera sold his computer to our daughter Russia for $160 in order of paying off his loan faster and Jordan is considering selling his old PlayStation for the same reason," the mum said in the caption.
Adams' explained to her followers that she was never very good with money when she was younger so she wanted to make sure that she taught her boys as much as she could about finances while they were young.
"Some may disagree with this style of parenting and that's OK. My partner and I are however preparing our children for the real world in whatever way we see fit," she wrote.
Fellow parents loved the idea behind the 'loan contracts' and commended the mum for taking such initiative with her boys.
"Yes yes yes!!! So so important to teach kids early about finances, budgeting and financial responsibilities," one commented on the post.
Another said, "I not only love this, I love the language you have used in the contract, words like "hereby" etc. Extending student's vocabulary."
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