Why Financial Education is so important to our family
“We live in a world where our kids are hammered with online marketing to “get it now – pay later”. PayMyParents is designed to help educate our children to live in today’s world and tomorrow’s world but to do so with a solid, educated knowledge base around managing their money.”
– Richard Van Der Velde, Founder
They say most of the world’s best inventions are born from necessity BUT someone has to firstly recognise the need AND secondly, develop whatever is needed to overcome that particular issue. PayMyParents is exactly that.
PayMyParents was born from our personal experience based on loaning money to our children. Like most parents, we want to help our kids. After discussions and promises of when and how this money would be repaid, we happily handed over the cash.
We quickly came to recognise their lack of knowledge about the value of money as well as their total lack of understanding about how Loans work along with the responsibilities associated with borrowing money.
The reality was that it took significantly longer than agreed to get repaid and whenever we brought up the issue about being repaid, there was a family dispute.
Because we are so close to our children, they are comfortable to argue with us and avoid making payments. Other areas of their life seem more important and that is not fair to us as parents nor does it teach good monetary skills.
Richard & Tonya Van Der Velde
The result – my wife (Tonya) designed a system where the kids can borrow money but do so using virtual, real life conditions. There is an affordability budget they need to do, there is a Loan Agreement and there are default costs. Like a real loan, they will receive reminders to ensure payments are made on time and chased up if payments are missed. They will need to set up regular payments AND those are managed through a third party, so as parents we do not have to confront the kids each time a payment is due. This saves so much personal conflict and because a third party manages the payments, the kids are more likely to pay on time and in full.
It is your choice whether or not you charge interest. Better yet, the system is completely free to use! Joining gives you lifetime access to all our financial resources and services. The ONLY time a cost is incurred is if, or when, a loan is active, with the borrower paying normal transaction fees.
Using PayMyParents, your children get the loan they need, they learn lifelong money management skills which will be worth gold to them later in life, no more family disputes AND as parents, you get paid!
Our Education/Schooling system does not teach good money management skills nor does it educate our children about loan contracts, default issues and more. PayMyParents is never designed to damage your children’s credit file BUT it is designed to teach lifelong, positive monetary habits.
We live in a world where our children are hammered with online marketing to “get it now – pay later”. PayMyParents is designed to help educate our children to live in today’s world and tomorrow’s world with a solid, educated knowledge base around managing their money.
End result – We get paid and the kids get educated!
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