FAMILIES ON THE COAST
How to raise money-wise kids WORDS LUKE TALBOT
You may not be building a multi-billion dollar nest egg for your kids to inherit, but you’d probably like them to be smart with money. Unfortunately, that’s one of the vital life skills that’s often not taught in schools. But parents can do a lot to raise moneysmart children. Start early, lead by example and show them how to budget, spend wisely and set goals. And who knows, you may have the next Warren Buffet or Twiggy Forrest in the family.
SOME PRACTICAL EXAMPLES When paying bills: Show your child an electricity or phone bill. Explain how long you had to work to pay it. I tell my kids that the bill is equivalent to, say, the cost of a PlayStation console. Putting it into their language helps. At the ATM: Explain that the cash from the ATMs isn’t ‘free money’ and show them how withdrawing reduces your bank balance. Creating a budget: This is a great opportunity to discuss ‘needs’ versus ‘wants’. Explain that credit cards or things like Afterpay are not a solution to a ‘want’. You can also show how a weekly goal should be to have money left over.
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Pocket money: Money should rely on chores/tasks at home. This is also a good chance to set up a piggy bank or similar so they can save for a future purchase. In my household of three kids, I’ve implemented the Spriggy system. The App provides your child with a VISA Debit Card and you control the funds applied to the card and create a recurring chore list for each child. As they complete chores, your approval releases the pocket money to their savings account or their card. It also allows me to transfer money to them instantly in case of an emergency. spriggy.com.au
LEARNING ONLINE The Australian Government has created a comprehensive financial learning portal including a range of online activities for children, as well as guides for parents. Find it at moneysmart.gov.au 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. coastfin.com.au
