Often, people’s beliefs and attitude towards money are built on what they saw and heard when they were young. Children absorb what they hear and start building their own relationship with money, so it’s important to teach the children in your life good money habits from a young age. Here are some practical tips you may be able to share with the kids in your life:
2 to 4 years old
Keep a little store of cash for playing ‘shop’ at home – including different notes and coins so they can feel and see the difference between denominations. Give them small amounts of money to spend on treats or take them shopping and pay in cash, so they can see a transaction taking place, and let them hand over the money so they feel involved.
5 to 12 years old
When you go shopping together, explain that each time you tap your card or phone to pay, it uses money in your bank account, which you’ve made by working and saving. Giving kids pocket money is a great way to learn how to earn and value money, and to understand how much the things they want actually cost. Open a bank account for them to save some of that pocket money away, will help them understand digital money and saving.
13 to 18 years old
Build confidence by guiding them through life skills like being able to read a pay slip, understanding the risks of credit cards and ‘buy now, pay later’ offers and keeping track of their mobile phone costs. Encouraging them to get a part-time job and help them create their own budget to pay for the things they want, like mobile phones and activities with friends, is a great way to learn the value of money.
Healthy attitudes to money start with the conversations we have with our families. Do you talk about your own financial choices in a positive light? How do you talk about savings and planning for the future? Teaching kids about money is an important skill; ASIC’s MoneySmart website has a wealth of information to help you teach kids to be smart with money.
Good money habits continue into adult life – it’s never too early (or too late) to get professional financial advice. Your financial adviser may focus on specific aspects of your finances, depending on your age, lifestyle and life stage. They can not only help you make the most of your money today, but perhaps even more importantly, help you work towards your future financial goals.
Did you know? Research shows that a financial adviser may add approx. 5.2% pa to your portfolio*. On a $500,000 investment, that’s $26,000 extra per year!
Remember, as a member you’re entitled to a complimentary appointment with Mine Super Financial Advice. You can request an appointment online or by contacting us.*Source: AdviserRatings, 2021 Value of an adviser report, September 2021.