The Barefoot Investor: The easy ways to make your kids money smart in three minutes

BAREFOOT Investor Scott Pape wants to create a generation of kids who aren’t stupid with money. This is his dead-simple plan.

SCOTT Pape’s grand plan is to create a generation of kids who are confident with cash and avoid becoming financial train wrecks.

“There’s a lot of people out there who are highly-educated but they are still stupid with money,” says Pape, who has become a finance phenomenon with thousands following his advice.

And for Pape, changing that starts young and in the home — with basic rules and a lot of fun.

In his new book, The Barefoot Investor for Families: The only kids’ money guide you’ll ever need, the laid-back farmer and former stockbroker spells out a simple approach for every Australian family to follow.

Instead of the “three buckets” and “Barefoot date nights” he espouses for adults — where couples discuss their finances once a month over a parma and a pot — Pape has adopted a new game plan.

Three jam jars, three jobs and three minutes.

He’s said that’s all it takes for kids to become successful money managers.

This includes a splurge jar, a smile jar and a give jar.

And he hopes it will help every Australian kid before they leave the family home.

“Three jam jars, three jobs that can be done on a Sunday afternoon and three minutes for the parents to check it all off,” Pape said.

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Scott Pape, The Barefoot Investor is pictured at Haileybury School in Melbourne with Ruby and Abdul and their money jars. Picture: Ian Currie

Pape has spent the past year busily writing his new book from his farm near Romsey, about 65km north of Melbourne.

He also spells out the Barefoot 10 — 10 money milestones kids need to achieve before leaving the family home.

Born and bred in the Victorian regional town of Ouyen, 440km northwest of Melbourne, Pape learned from his parents Joan and Donald at a young age how to be frugal with cash.

He started his regular money columns in Melbourne’s Herald Sun about 15 years ago and from here he became a household name.

But it hasn’t been all roses — in 2014 a devastating bushfire raged through his property destroying virtually everything to his name.

The only thing left was a brass bell his gave his wife Liz on their wedding day, nothing else.

Four years on his family has recovered, they have three small children and the Barefoot phenomenon continues to boom.

And there’s no doubt when Pape talks Australians listen.

The Barefoot Investor has become a bestseller with more than 1.2 million sold across all editions including print, ebooks and audio books.

But Pape said the biggest challenge in making people tune in when managing money is by “making it simple.”

“If it’s hard you are not going to do it long term,” Mr Pape said.

“We want them to splurge some money, which they may make some mistakes on and that’s how we learn.

“We want to smile and save up for something that is going to make them smile and we also want them to give.”

His new book, published by HarperCollins Australia, has already had 54,000 preorders and is certain to prove another Pape bestseller.

It’s aimed at parents and grandparents and Pape hopes it will help put more people in good financial stead.

“I don’t want have to another Royal Commission in 25 years time,” Pape said.

“There are no fancy apps to download, it is jam jars so even a single mum on Centrelink can do it.”

Pape’s new book hits bookstores on Monday.

Teira and Peter Jansen with their kids Lachlan 8, Alana, 6, and Chloe, 3, at home in Forestville today. Picture: Tim Hunter.

HOW MONEY JARS REALLY WORK

MOTHER-of-three Teira Jansen says she taught her children from a young age that “money doesn’t grow on trees.”

The 37-year-old’s children each have a spend, save and give jar and they must do weekly jobs to earn themselves pocket money.

“We are fortunate in our situation that we have a reasonable amount of money and I don’t want my children to take advantage of that,” Mrs Jansen, of Forestville in NSW, said.

“If they want to earn money they need to do jobs and work for it.”

This includes emptying the dishwasher and taking out the rubbish.

Each time Chloe, 3, Alana, 6 or Lachlan, 8, completes a job they earn one marble — this is converted into 10 cents at the end of the week.

“We also give them interest on their save jar so they get rewarded for that,” Mrs Jansen.

“It’s simple and it does take a bit of discipline but it’s important to talk about money.”

Niamh Gantley with her children Drew, 7, and Sean, 4, with jars of money they use learn about saving. Picture: Adam Head

Her comments come as mother-of-two Niamh Gantley says her sons have learned they must work to earn money.

Drew, 7, and Sean, 4 have three jam jars each — a spend, save and give jar — and each time they complete a job they earn coins they can tip into their relevant jars.

“They do jobs like emptying the dishwasher, feeding the dogs and simple things,” she said.

“They might only get 15 cents — five cents for each job — and they drop it into each of the jars.”

Mrs Gantley said she believes it’s important her children understand the importance of money from a young age.

“They have comprehension that they have to do something to earn money,” she said.

“They know they have to work even at age four to earn money.”

Mrs Gantley and her husband Andrew Inglis, have both read the Barefoot Investor book which has helped them become better money managers.

@sophieelsworth