Seems they used their card to buy stuff when they didn’t have the ready cash to do so. But they loaded so much debt onto the card, they didn’t [...]]]> I overheard the parents of my best friend talking about money last night. They were complaining about how much interest they are paying on their credit card.

Seems they used their card to buy stuff when they didn’t have the ready cash to do so. But they loaded so much debt onto the card, they didn’t have a hope in paying it off in full at the end of the month (which would have meant they weren’t charged ANY interest).

But that’s not the dumbest part. They missed a monthly repayment. That instantly increases the rate of interest they pay… they’re now being charged something like 24% on the outstanding balance!

And they’re puzzled as to why they don’t seem to making progress by paying just over the minimum monthly repayment… Doh!

I wonder if they can remember what stuff they bought in the first place?

Ashley Stasher

One of the Money Mindset Mob - empowering teens to master their money

When I started, I could have been described as a ‘hobby farmer’. I just planted whatever crop had the nicest picture, which didn’t earn me much for my [...]]]> I’m really enjoying spending a bit of time each day ‘tending the fields’ on Facebook’s Farmville. It’s giving me the chance to try out some different money strategies…

When I started, I could have been described as a ‘hobby farmer’. I just planted whatever crop had the nicest picture, which didn’t earn me much for my efforts. But it was fun.

Then I started seeing what some of my neighbours were creating - big expansive farms complete with animals and implements and homesteads. I switched to the ‘bigger is best’ strategy, planting whatever would earn me the most, whilst keeping my expenses as low as possible.

This explosive growth strategy didn’t last very long. I missed a couple of important harvesting times (mainly because I miscalculated my schedule and was asleep!) and found myself back at square one: some land and little money to do anything with it. Plus I’d been too frugal to buy some of the ‘equipment’ like tractors and seeders to make my efforts more efficient.

So now I’ve found the happy medium: calculating the best possible return for my plantings, based on my available time to play the game and with ‘long-term’ thinking. I’m not about to break any records for fastest growth or largest farm, but I can easily afford a new tractor or the cool features as they are released, plus the fuel to run them or expand my ranch if I desire.

It’s the best of both worlds - enjoying playing today whilst setting myself up to continue playing tomorrow. Even without missing any sleep!

Streetwise Mike

One of the Money Mindset Mob - empowering teens to master their money

It takes me ages to try and figure out how much each planting is going to cost me and whether [...]]]> I don’t think I was cut out for making decisions like a farmer does. I mean, whenever I’m faced with having to plant a new Farmville crop, it’s really hard picking the best seeds to sow.

It takes me ages to try and figure out how much each planting is going to cost me and whether I have enough for the seed once I’ve done the ploughing. I’m afraid of making a mistake and so I second-guess myself each time. My friends laugh at my indecision, but I just don’t want to get it wrong.

I wish I could be more decisive with my money. You’d think being online and dealing with ‘pretend’ cash I would throw caution to the wind, not caring whether my choice was a money-earner or not. But alas, it seems every kind of financial decision makes me hesitate.

Scaredy-cat Pat

One of the Money Mindset Mob - empowering teens to master their money

The frustrating thing is waiting for my crops to mature, so that I can harvest them and earn more coins. I [...]]]> I’ve discovered that even ‘pretend’ money on Farmville is easy for me to spend. There never seems to be much in my virtual bank account because I’m always planting new crops or buying additional equipment.

The frustrating thing is waiting for my crops to mature, so that I can harvest them and earn more coins. I want everything to happen right now!

So I guess Farmville is teaching me to be a bit more patient with my spending. It forces me to work out how to earn the most money - in the shortest time - with the smallest investment. Crafty, huh?

I am looking forward to buying my pink tractor though!

Splurger Spike

One of the Money Mindset Mob - empowering teens to master their money

When faced with the choice between watching my farm’s bank balance grow and forking out to plough my plot and plant another crop, I felt torn between the two choices. Would my decision be worth it in the long run?

I need [...]]]> Spending money does not come easily to me, even when it’s virtual cash on Farmville.

When faced with the choice between watching my farm’s bank balance grow and forking out to plough my plot and plant another crop, I felt torn between the two choices. Would my decision be worth it in the long run?

I need to remember that to make the most of my money, there will be times when I will have to ‘use’ it to grow it. It’s just the associated risk that makes me nervous, like, what happens if I lose it?!

The Farmville example of that is spending lots of coins to plant a crop and then missing the harvesting period and my plants wilt and die. That’s such a waste of my money and I dislike it lots.

I soooo prefer being cautious than risking too much.

Ashley Stasher

One of the Money Mindset Mob - empowering teens to master their money

The ‘farmers’ help neighbours with chores and [...]]]> The online game sensation FarmVille is teaching people valuable financial lessons, and they may not even realise.

In the Facebook game (created by software company Zynga) players plant and harvest virtual crops, tend to farmyard animals and expand their land by selling the goods.

The ‘farmers’ help neighbours with chores and exchange gifts with them. As they gain experience points, players move up levels to unlock additional seeds, trees, implements and buildings for purchase.

Behind all the plowing and milking though, are lessons in money management that help strengthen a player’s financial literacy.

The three key elements to our money that FarmVille helps us practice are value, patience and risk. With a range of options to choose from when it comes to planting the crops, players must decide how much to spend in order to receive the greatest return.

The fixed cost of preparing the soil must also be considered, along with timing; if the player is not online to complete the harvest (plants take four hours to four days to mature) the crop withers and dies, thus losing the investment.

This is a sophisticated game. Unlike financial literacy lessons at school which can be purely theoretical, FarmVille allows students to experience the consequences of their money choices in a way they readily relate to: miscalculate and you lose coins.

Launched on 19 June 2009, FarmVille has rocketed to the top of Facebook’s application charts with over 26 million users tending their farm daily. More than 73 million people ‘go rural’ each month.

FarmVille is also encouraging people to talk about money. Blogs, wikis and tip sheets have sprouted across the web, discussing which crops are the most valuable, whether gold coins or experience points are better and whether buying a tractor does actually save the farmer money and time.

It would be difficult for a classroom teacher to generate such an extensive discussion with their constraints of time and resources.

The online learning never sleeps, with reports of teenagers setting their alarm-clock for the middle of the night to complete a profitable virtual harvest. That behaviour contrasts greatly with these recent Tweets:

“In financial Decision mAKING…bORING aS HELL”
[@MrHarris86 from USA]

“class boring financial mgmnt oh well”
[@AliMacRacing from Canada]

“i dislike having to deal with financial matters because i find it profoundly boring and have no natural aptitude for it.”
[@misterJVB from Philippines]

With parents concerned their children don’t value a dollar, too-readily embrace consumer debt and aren’t learning about money at school, FarmVille might be sneaking under the fence and sharing the money-mindsets students need: everything has a value, investing takes time and be comfortable with the risk.

I’ve been setting money aside for the extra spending during November and December. I won’t have to stress over maxed-out credit cards in the new year and I’ll even have some money spare to take advantage of the [...]]]> I really like this time of year. Christmas comes as no surprise, so it’s easy to plan for.

I’ve been setting money aside for the extra spending during November and December. I won’t have to stress over maxed-out credit cards in the new year and I’ll even have some money spare to take advantage of the Boxing Day sales. I’m looking forward to catching up with friends and family, and giving them gifts I know they’ll enjoy.

My hot tip for this festive season: a little planning goes a long way, and let’s you relax and truly enjoy Christmas day.

Streetwise Mike

One of the Money Mindset Mob - helping teens get their head around money

I’m always torn between buying the things my friends and family will really like and actually spending what I can afford. But then if I spend less than everyone else, what will they think of me?

My hot tip for this [...]]]> Ah yes… Christmas. The time of trying your best to please everyone and not really succeeding.

I’m always torn between buying the things my friends and family will really like and actually spending what I can afford. But then if I spend less than everyone else, what will they think of me?

My hot tip for this festive season: make your best decision and stick with it. There’s no pleasing everybody, so you may as well aim to please yourself.

Scaredy-cat Pat

One of the Money Mindset Mob - helping teens get their head around money

It’s true I do tend to spend a bit much overall, but seeing the smile when I give the gift makes it all worthwhile. I’ll worry about the bank balance in the new year…

My hot tip [...]]]> Christmas rocks! I just love spending time in the mall, browsing the displays, trying to decide what to buy everyone.

It’s true I do tend to spend a bit much overall, but seeing the smile when I give the gift makes it all worthwhile. I’ll worry about the bank balance in the new year…

My hot tip for this festive season: if you’re buying lots of things from one store, ask for a discount! Then you can buy even more!

Splurger Spike

One of the Money Mindset Mob - helping teens get their head around money

This time of year can be frustrating. I’ve worked hard since last December to build up my bank account and now I’m expected to spend great chunks of it on other people!

Don’t get me wrong, I enjoy giving gifts. It’s just the whole ‘expectation’ of who should receive presents and [...]]]> Wow! Just six weeks to Christmas…

This time of year can be frustrating. I’ve worked hard since last December to build up my bank account and now I’m expected to spend great chunks of it on other people!

Don’t get me wrong, I enjoy giving gifts. It’s just the whole ‘expectation’ of who should receive presents and how much I should spend. Especially when not everyone in my family cares as much about their bank balance as I do.

My hot tip for this festive season: decide before hitting the shops how much you are going to spend on each person. Even better is having a list of items to get instead of wandering the stores aimlessly, hoping inspiration will strike. That’s just tempting a budget-blowout!

Ashley Stasher

One of the Money Mindset Mob - helping teens get their head around money