11 October 2018 FT — Articles to Read

11 October 2018 FT — Articles to Read


Question: According to MSN: Money, how should you teach your kids about personal finance?


Mnuchin warns China over currency devaluation as trade temperature rises – Pg. 1

–        The onshore renminbi has weakened 10.9% since March…

–        Investors and analysts have raised concerns that the currency is nearly Rmb7 to the dollar, which would be its weakest level since 2008

–        The Treasury is due to release its regular report on currency issues this month, which will be watched closely for its analysis of trends in the Chinese currency


WTO head urges action to counter attacks on globalization – Pg. 4

–        …the IMF issued a downward revision of its forecast for global growth on the back of escalation trade disputes between the US and China, which resulted in tit-for-tat tariffs covering $360bn of products

–        The WTO has been undermined by criticism from Donald Trump, US president, who has threatened to pull out of the Geneva-based trade boy unless it is reformed, and has resisted appointing new judges to a dispute settlement panel


Scrapping of Libor benchmark leaves $500bn of bond contracts in limbo – Pg. 11

–        More than $500bn in bonds may need to have their documentation rewritten as a result of the shift away from the Libor benchmark, …

–        Without a new solution, borrowers that have issued floating rate notes or other types of bond hinging on Libor will need to approach all their bondholders to request a switch to a new rate

–        Banks are becoming more focused on the pressing need to act in preparation for Libor’s demise, especially since the UK’s Financial Conduct Authority and the BoE turned up the heat on senior executives at banks and insurance firms in September to encourage them to prepare for a shift

–        Banks and some borrowers are already working to create a new breed of debt using the preferred Sonia benchmark but new bonds are still hitting the market with payments calculated on a rate that will not exist by the time the bonds mature


Answer: (1) Teach kids the difference between wants and needs; (2) Comparison-shop with your kids; (3) Teach them to pay themselves first; (4) Help kids create a “wish list” and a savings plan; (5) Give kids an opportunity to earn money; (6) Open a savings account; (7) Explain compound interest; (8) Explain credit cards and debt; (9) Let kids buy stock, literally or using a simulator; (10) Talk to your kids about taxes; (11) Let your children make money mistakes; (12) Be transparent about what it costs to run the household; (13) Consider enrolling your child in a financial literacy programme; (14) Teach kids to think critically about branding and advertising; (15) Encourage kids to start a small business or side hustle; (16) Meet kids halfway on larger purchases; (17) Teach kids to think critically about social comparison; (18) Talk about online shopping, banking and data protection; (19) Teach kids that giving back is just as important as spending and saving; (20) Model good financial habits