I made loan contracts for my boys aged nine & 12 so they could buy a PlayStation – it’ll teach them the value of money

A YOUNG mother-of-three has revealed she drew up a contract for her sons to teach them the value of money.

Nicole Adams, from New Zealand, took to Instagram to explain her choice and why she thought it was an important parenting method.

Instagram/@cwknixNicole Adams shared a picture of the contract she drew up for her two sons[/caption]

She explained the boys, Jordan, 12, and Tawera, nine, both wanted a PlayStation each and one wanted a TV.

Each PlayStation would have cost £208 and the TV was £31, but both boys only had £170 in their bank accounts.

Nicole’s boys had already been taught to save money, and had been putting their birthday, Christmas and chores money in a bank account.

The mum said it was never too early to teaching your children about money, loans and interest rates in the modern world.

She said: “As parents my partner and I were faced with two options of teaching our kids life lessons.”

Nicole explained she could have simply told the boys they didn’t have enough money yet and to keep saving.

But the mum and her partner decided against it in order to teach the boys about loans and repayments.

She said they wanted to teach them about “loans, loan repayments, credit ratings if paid on time without drama and the serious matter of added interest and even debt collection.”

The couple took their boys to Cash Converters to buy the products and then drew up a contract for each of them to sign.

Nicole added: “At this stage the boys are in debt with the understanding that for the next X amount of weeks they will be doing their chores to pay off their loan repayments.

“We explained the further details about interests with loans but decided against including the interests in their contracts.”

“Just last night Tawera sold his computer to our daughter Russia for £78 in order to pay off his loan faster and Jordan is considering selling his old PlayStation for the same reason.”

“I absolutely love this for them. I feel as though growing up I personally knew nothing about things like this and my credit rating reflected this at the age of 19.”

The mum said she understands not everyone will agree with her method, but wanted to teach her kids about the real world.

Followers loved the idea, one wrote: “So so important to teach kids early about finances, budgeting and financial responsibilities, love this!”

“love this idea and am inspired to do this when they hit that age. Thank you for sharing. It preps them for the real world.” Added another person.

A third person commented: “Now these are the types of things that are setting them up for a great future.”

Instagram/@cwknixThe mum of three was praised for teaching her children important life skills[/caption]

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