Reply to: Are people inherently stupid when it comes to money?

[vetran]

I thought the the ExMrsBP's had already worked that plan faultlessly!

naughty!

not as well as this one

Mother awarded family's entire £550k estate in 'extraordinary' 100pc divorce ruling - Telegraph

though to be fair he does seem a very bad boy.

[SimonMac]

She sounds stupid.

Can you post her contact details? Plan B is to fleece the stupid...

I thought the the ExMrsBP's had already worked that plan faultlessly!

[SueEllen]

Basic money management like how to create a budget, how borrowing and saving work, what a mortgage is, should be mandatory. You could say the parents should teach the children how to read and write and do simple arithmetic; more parents know those things!

All these financial things can very easily be covered as part of the existing curriculum as it's basic arithmetic, you just apply the context. Relying on parents who may not know themselves just perpetuates the issue.

I'm not saying we should have GCSE questions "Tarquin's fathers earn £34k collectively, if they get 99% mortgages how many BTLs can they buy" just basic, useful skills. Hell if you think education should focus on the more pure academic stuff then teach it along with woodwork and IT as a namby pamby life skill module!

Oddly it was actually taught in my schools but not in one subject area.

So it was taught in Maths, History and Personal Development as we had a bank come into our school.

However if you asked anyone apart from those in the top set with me they would claim they weren't taught anything about money management in school.

So I expect other schools do cover it.

[d000hg]

What do people have parents for?

You can't make schools teach everything otherwise they get accused of teaching leftish or rightish views.

Basic money management like how to create a budget, how borrowing and saving work, what a mortgage is, should be mandatory. You could say the parents should teach the children how to read and write and do simple arithmetic; more parents know those things!

All these financial things can very easily be covered as part of the existing curriculum as it's basic arithmetic, you just apply the context. Relying on parents who may not know themselves just perpetuates the issue.

I'm not saying we should have GCSE questions "Tarquin's fathers earn £34k collectively, if they get 99% mortgages how many BTLs can they buy" just basic, useful skills. Hell if you think education should focus on the more pure academic stuff then teach it along with woodwork and IT as a namby pamby life skill module!

[SueEllen]

I was going to say what some here dismiss as "stupidity" is exactly how things may work in other countries.

It's not primarily a question of stupidity, it's a question of poor education. This stuff isn't (or at least wasn't) taught at school as part of basic money education which would be more useful than learning P=IV and the capital of Australia.

What do people have parents for?

You can't make schools teach everything otherwise they get accused of teaching leftish or rightish views.

[d000hg]

She's not totally in la la land. There are mortgage products that do exactly that. You just pay interest and they take the house when you snuff it.

In Switzerland, mortgages are inherited. It's repayment that's unusual (because interest payments are tax deductible against the wealth tax).

I was going to say what some here dismiss as "stupidity" is exactly how things may work in other countries.

It's not primarily a question of stupidity, it's a question of poor education. This stuff isn't (or at least wasn't) taught at school as part of basic money education which would be more useful than learning P=IV and the capital of Australia.

[LondonManc]

How did that contractor loan scheme work out for you?

He accidentally loaned himself a tenner and went bust on the interest.

[Old Greg]

She sounds stupid.

Can you post her contact details? Plan B is to fleece the stupid...

How did that contractor loan scheme work out for you?

[BrilloPad]

She sounds stupid.

Can you post her contact details? Plan B is to fleece the stupid...

[eek]

it will cost her more?

Because her daughter owns some of it....

[vetran]

I didn't listen to the program, but possibly her hubbie organized the mortgage originally. So speculating on her intelligence or otherwise may be irrelevant.

As someone has already pointed out, in so many words, what is to stop her getting equity release and repaying the mortgage out of that?

it will cost her more?

[OwlHoot]

partially but such a contract does require a certain investment of intelligence.

If she is mentally sub standard then possibly.

I didn't listen to the program, but possibly her hubbie organized the mortgage originally. So speculating on her intelligence or otherwise may be irrelevant.

As someone has already pointed out, in so many words, what is to stop her getting equity release and repaying the mortgage out of that?

[ASB]

What were her repayment conditions on her actual loan?

The first io mortgage i had 30 ish years ago had no term and was, in fact, silent on capital repayments. In those circumstances it is reasonable to be aggrieved on a repayment demand.

Of course my current io, which is offset, is explicit.

[northernladuk]

I heard this on R4 moneybox repeat tonight. She was very well spoken and confident. I thought it was an actor at first. Some of the stuff she said just didn't make sense though. She expected them to give her a repayment mortgage on a lower rate so she could pay the capital off. Just give her it. No lending criteria or affordability checks. That alone shows she's just not got it.

[SueEllen]

I feel the same about extended warranties and PPI. Surely people understand that insurance companies are there to make money? a little bit of savings to cover unexpected costs will save you a fortune in the long run.

PPI was sold to people who said "No". They got the paper work and found it had automatically been ticked for them.

Other people were told they couldn't get the loan or credit card if they didn't agree to PPI.

Complaining against financial institutions can be a lot of hassle as I learnt last year with Nationwide.

They try all sorts of tricks to not to deal with your complaint from lying to pretending they don't receive your complaint letters to accusing you of being abusive. Most people don't record phone calls so can't prove they behaved themselves and don't send complaint letters by recorded delivery.

In regards to extended warranties I have said to companies for the past few years something along the lines off "So you are admitting the product you have made/sold has a fault with it?" Oddly they they stop trying to sell the warranty to me...