Raising your kids to be smart with money gives them a vital life skill that’s not often taught in schools. Start early, lead by example and show them how to budget, spend wisely and set goals.
Here are some Practical Examples
When paying bills: Show your child an electricity bill or a phone bill. Explain how many hours or days you had to work to pay that bill.
At the ATM: Explain that the cash from ATMs isn’t ‘free money’ and show them how withdrawing reduces your bank balance.
Grocery shopping: Show them different prices for similar items, and how weekly specials work. Explain how much it costs to create their favourite meal.
Creating a budget: This is a great opportunity to discuss needs vs wants. You can also show how a weekly goal should be to have money ‘left over’.
Pocket money: Money should be reliant on chores/tasks at home. This is also a good chance to setup a piggy bank or something similar so they can save for a future purchase.
The Australian Government has created a comprehensive learning portal including a range of online activities for your children, as well as guides for parents. You can find it at www.moneysmart.gov.au
Topics explored include:
• Banking and budgeting
• Loans, credit and debt
• Investing and planning
• Super and retirement
There are also a variety of paid and free apps available such as Learning Money Australia (www.autismapps.org.au/mathsnumeracy/learning-money-australia/)
As a parent you have the power to shape your children’s relationship with money. By starting early, and focusing on practical day to day activities, you could set them up with a vital life skill and a brighter future.
Source: Astute Finance