How to give your children a head start in their financial lives

Parents are hands-down the most influential force in any child’s life, and studies show that this extends to money management. Unfortunately many still don’t talk to their children about money.

Here are some practical ways to teach your kids and give them a head start in their financial lives.

• Saving for the things they want – When your child wants to buy something, help them to set a goal and track their savings through a chart.
• How to get value for money – explain why different things cost different amounts. Work with your children to research online or shop around to find the best price for an item they want. Show them how much shopping around can save.
• Avoiding Scams – Make sure your kids are safe when online shopping and know how to spot an online scam.
• Needs vs wants – Discuss the difference between needs and wants and encourage them to think about this before spending.
• Mobile Phones – Mobile phones are an integral part of life, and so are phone bills. When your child receives their first mobile phone, show them how to check and minimise data usage and involve them in selecting the most appropriate plan whether pre-paid or contract.

One of the most important ways to raise money smart kids is to model good financial behaviour. In short, practice what you preach.

Sources: www.moneysmart.gov.au/life-events-and-you/families/teaching-kids-about-money