Children and Money
I was recently at a conference for students – and was addressing about ‘ABC of Money’. ABC of Money is a program which is meant to introduce you to Goal setting, Quantifying Goals, Mathematics of Investing, Compounding, Annuity, Risk Profiling, Mutual Funds, Life Insurance, Retirement Planning and Record Keeping. It is a comprehensive program and lasts more than a full day. If it does start at 9 a.m it lasts till 6.30 pm. However, since corporates can afford only one day on such a program we do it as a One day program. Ideally it should be a 2-day program.
This conference was at Shimla and 450 students had gathered from all over the country (and a few outside the country too)- and during the day they were to have parallel sessions – on environment, education, financial literacy, …etc..
What I saw was disturbing. The program which was supposed to start at 9.30 am started at 11.30 am – because the previous night was a ‘scullying’ party – the biggest drinker wins! The program was organised in the canteen – so the lunch break was from 1.30pm to 3.15pm. Obviously on the fly, most topics were dropped!
So here were 450 students (tomorrows businessmen and political leaders) who could not stick to a time-table. It is just that simple lack of discipline.
Many students were smoking – I have nothing against it – (as a shareholder of ITC, I actually benefit commercially) but was shocked that there were parents who were throwing so much money at kids that a 20 year old could afford to spend Rs. 200 a day (repeat Rs. 200 a day) on cigarettes – for self and friends. I hate extrapolation, but surely you can add. The smoking and drinking was there to see – and the lack of discipline was visible in how the hotel was abused. The common toilets were not usable. And these were rich kids – it takes money to reach and stay in Shimla especially if you are coming from Bangalore and Chennai!
Though most students wanted to do their higher studies with borrowed funds, most would be funded by an ATM called ‘DAD’ or “MUM”. It is time parents told their kids “You will get admission in a college for which you have the marks and not a college which MY money can buy”. Somwhere parents tell children “I will buy you admission”. I guess either it is too much money which the parents have or the children’s ability to squeeze every bit from their parents that allows children have so much money. Children from less affluent households seem to behave much better.
Obviously because I have not said anything nice about the event (some other things were unprintable) I will not reveal the umbrella under which they had gathered. If my daughter mentions that name to me, I will faint. Parents who want to know the name of the organisation will have to send me their cell phone numbers, surely will whisper in their ears.
By the way did they ‘hear’ me out? Yes. 1 kid was working for Max New York Life Insurance and one was pursuing CFP. 2-3 girls paid attention to what I said and about 12 boys took notes understood, asked questions, asked for my blog, email id, cell number, etc. and promised to keep in touch. They may or may not. However there were 50 people in the class. 30% attention after a scullying night is not bad. Only if I had known it in Mumbai that this was the crowd I would have pretended that I was busy and would have avoided the arduous Chandigarh – Shimla drive for a 1- night trip. That is all!
Ravinder Makhaik
Subra,
No matter what experience you took back, I considered that it was yeoman’s job to educate such a rowdy bunch about basics of money.
The shock of one boy affording Rs 200 worth of cigarettes a day did hit me too.
In fact, I thought he was bragging before a nice set of girls sitting on his table.
What struck me was that there may be lack of discipline but the while I was around there was pin-drop silence and the youngsters heard you out in rapt attention.
It may be understand that even the young understand
“Honey its all about Money” — it told as a Pied piper tale, like you did.
No cell phone going off, except mine, interrupted the session.
Nitish Bansal
this is a slightly edited version – removed some unprintables….but the gist is captured in full
Sir,
When the session started at 11:30 AM, in the first floor section of the Dining Hall, u started teaching about PPF, and at the end of the session i asked u what about EPF and the case that 1 can not do anything as the laws in india make it obligatory to have EPF, (and ESI). Your response to my question was disheartening and i realised that of all the public speakers whom i have interacted with over the last 4-5 years you are the only one with i was disappointed with. You told us that saving and investing Rs. 10000 now will give me lakhs after 35 years.
Sir i am pursuing Chartered Accountancy from chennai and have a fair bit of knowledge about interest and tax. With all due respect it is virtually impossible for a person to find an investing scheme of 35 years with a compounding interest of 35 years.
Your session even if it was only for 3-4 hours was a big flop show, the only people whom u could have convinced about selling such crap are a bunch of 18-21 year old KIDS.
But all of us are not brats from rich families. It is just the fact that we have parents who earn a lot. As long as our parents dont have a problem about us spending, the only problem u can have with that is jealousy of not having rich parents yourself.
You were sorry about wasting a trip to come to Shimla… Sir i am feeling sorry i wasted 3 hours of my conference time listening to your bucket loads of crap.
Umesh Devadiga
Hey Subra,
there are 2 things about what you write which irks people – compounding and real estate. You seem to have got Nitish’s goat with compounding. Obviously Nitish does not know about Indexing – it involves no interest or taxation (oops not my style, but taking a jab). Indexing and compounding @ 19% over 35 years should make 10k into 45 lakhs. Like your grandfather example this is difficult to digest. I do not know if you spoke about real estate, that created anger in Hyderabad if you remember. So if somebody got angry in your session, somebody may have woken up too!!
Uma Kannan
Hey he is screaming! Did you make your favorite statement “kids living beyond parents means” or “you mortgage your Dad’s pension to get a 3rd rate MBA”….man Nitish is boiling! you should not have edited what he said…may be u should have used #@$% …and let it go! Man this is fun!
Anonymous
Sir,
I was there at the session you gave. I won’t say I was completely satisfied with what you said, but it was a session that gave me a lot of information and learning.
I definitely respected before I read this. You might call us ‘rich brats’ but just before that you could have looked into the fact that scullying (skolling) is not all what we do. Had you come 2 days before or would you have attended any other session, you would have realized that the conference was not just for a couple of random brats but for students who make an initiative to use their time and efforts into something productive. I don’t need to defend myself or the organization, but it seriously hurts to see negative culture growing out when you have worked your ass off for all these years.
As for the cigarettes, I think that’s a personal choice. I don’t smoke, but I don’t point fingers at other people who do. If the parents do not have a problem with that, I don’t see why you should.
Anyways, it was great you attended our conference. Maybe we need to make ourselves more presentable, maybe you need to learn that by the end of it, we are students who want to create a positive impact.
Regards
subra
I seemed to have ruffled a few feathers, sorry, let me offer my apologies. First of all it is becoming like “Smoking vs. not smoking” debate. I did not mean it to be like that. What I was trying to say was Rs. 40 a day…would lead to Rs. 2 crores. IT IS YOUR CHOICE, of course. Sadistically speaking I actually benefit – we recruited 13 MBAs in our office last year – 3 of them (2guys, 1 girl) smoke 20 cigs a day. My take was he who pays the piper calls the tune. Parents buying cigarette lighters for their kids birthday are not the ones that I like – HERE I AM BEING JUDGEMENTAL, but that is by choice. Also the group behavior that I saw was perhaps minimum, but I met a couple of ex members who filled in the details – and no again that is yours by choice. Frankly I did not get a feeling that Finance – personal finance in particular was the topic that you were waiting to hear. And we also did not make a great choice to catch you – ‘the day after’. Happy to take responses and comments which are printable..!
Pooja
I was not there at Shimla, nor have I attended any of your training. However you seem to be telling 17 year olds “Cigarettes are luxuries and your parent should not pay for it”. Is that so? Where do we draw the line? What about a first class pass? Or a coffee at Barista? Or movies with friends? Who is to decide whether I can / should spend MY FATHER’s money? Should there be a Minister who will come out with guidelines? Like SEBI or IRda? Or are you saying something else that I am missing?
Pooja Chopra
Sir your write-up has produced an outrageous amount of heated debate here 😛 It’s always fun to read your blogs. Good one, but the delivery is biting and sarcastic. I am in splits laughing!! They say “There is truth in sarcasm.” Who knows better than you? 😛
deepa
i think CAs (aspiring or otherwise) think they are smarter than the rest simply by registering for the CA course (and sadly in some cases by getting a membership number). a very recent conversation with a CA friend – he thought outlookmoney was the worst magazine because it made unrealistic statements. he read in one of their money doctor kind of columns, a CFP advised a 30 year old to put aside Rs 2 lakh every year for 30 years in an equity fund and he’d have about 6 crore at the end of it. he thought it was preposterous till i told him it was just 12% return per annum! so i am not surprised by the slander on this post. just feel bad people have so much knowledge-ego (your term for journalists;))
Piyush Suri
Subra,
Most of you what you say does make sense, but I find your writing/preaching tone quite pointlessly bias.
I understand you’re trying to teach these kids about money, like any good parent (I mean good parent in today’s age) it all boils down to communication having a handicap of a generation gap, while you were pouring in that years of knowledge I find it ridiculous that you were judging people and fitting them into streotypes, common mistakes that most insensitive teachers/preachers/parents make.
Try to give people a break and be less cynical (yeah you can do that even if you’re from finance background ;)).
Your sessions was nice, I saw the tools and the impact it made, I say a thumbs up!
Shwets
Hi!
Wow! Well dunno if you still consider a 25 yr old girl young enough…but I’d try to find a middle way out! Scullying parties are so much fun!! and spending 200 rs in a day on smokes..or coffee or movies..is again based on the resources u have (parents money or ur own!)… but yeah!! starting a session late bacause people were dead drunk last nite!! is not acceptable!
Why do I feel somewhere, in the entire discussion..people only targetted his comments on smoking!!!
Babar Zaidi
It is indeed disturbing that the youths behaved so irresponsibly. But it is also heartening to note that there was a section among them who were serious about learning the basics of money management. This small minority will become the leaders while the rest can be the herd.
Aditi Acharya
Ouch! You seem to have had a contentious session. While I am willing to agree that kids these days have a flexible view of money and all that it entails, it is also true that money means differently to this generation. Having said that, kids who spend Rs. 200 a day on cigarettes soon cut that down if they can’t balance their books when they take up their first job. Fiscal prudence comes on its own when kids come slap up against reality.
On another note, skolling or not, coming late is just not done! Even you are an i-banker earning pots of money and living the high life, you had better be on that trading floor before the markets open, or you’re dead!
Ha!
Subra,
Sounds very true, y arent u reveiling this org? And more over, students of that age will be like that, its a part of the learning experience that goes thro at everyone’s time of life. And they will… trust me, will learn alot from these mistakes. Mistakes are bound to be committed, and this seems more or less due to the thrill. And u really cant expect such young students to be going into such level of details during a thrill meet, 450 students….sounds big! feels exciting thinking bout it. U really cant expect topics like these interesting these guys. I mean retirement planning before evening doing ur under grad! sounds funny…. topics cld have been alot more basic rather than such vague ones!
Plus, the organisers shld also be put to blame for accepting on such seminars or wteva! with such depth! smoking n etc…is a part of life, its more of a matter of choice rather.
And…..there are many famous ppl up now, whom were like this during their younger times. examples r of plenty….u ll kno betta mr. Subra.
And next time…hope u hav a betta info on such seminars, for saving ur time ofcourse!
Vikram T
If children start behaving like adults, life would be boring. What actually amuses me is that in a country where voting can happen at 18, smoking can happen at 7, the legal age for public drinking is 21. Some places it is 25 years! If these children were drinking, obviously they were 21, not 17-18 as you have said. Or the rule is there for being broken. Just a thought!
Dr Mohammed Ali Khan
You should have to Chennai Subra.. You would
have found a much more well behaved and conservative crowd.
subra
I guess you mean I should have gone to Chennai. No i do not agree at all with you. Indians, the more enterprising migrate with their families. So you find all kinds of people all over the country. The worst behaved crowd in my group was perhaps from Chennai during a bank training program. Bad habits are quickly copied into serials which are telecast all over d country for everybody to learn and do!
Dr Mohammed Ali Khan
Hi Subra
I accept your argument..
I apologize to the Non- chennai people
jagoinvestor
I am late here .. but i am sure people are taking subra’s comment in wrong way .. he only meant to pin point a point that todays generation needs to learn about money in a better way ..thats all
manish