Teaching kids the secrets of financial success

February 8, 2018

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In an increasingly digital world, the value of money can be a difficult concept for children to grasp. Here are some tips for helping your kids and grandkids become wealthy & wise.  

When you were young, do you remember standing next to mum or dad at the corner shop and watching them count out notes and coins to pay for the bread and milk? This was a valuable lesson about the purpose and value of money. Fast forward to today – few corner shops exist and the days of counting change are almost over. When our children see us pay for something at the shopping centre, it’s likely to be with a piece of plastic – or even by mobile phone. That’s why it’s now more crucial than ever to consciously teach your children and grandchildren about money: how to spend it and how to save it. Here are five ways to do it.

 

1. HELP THEM BUDGET & SAVE

Many children believe parents have an endless supply of money - which is why it's so important to talk to kids about money from an early age. You can start by discussing your own household budget and explaining how you manage costs like weekly grocery shopping and phone bills. If there's something your child wants, like a new soccer ball or item of clothing, work out on a budget so they can save up and buy it. Them reward them by taking them shopping. 

 

2. give pocket money 

Pocket money is one of the simplest and most powerful ways to teach children the value of cash - which is why it should be earned rather then given freely. Whether it's payment for completing chores or a reward for behaving well, children will understand very quickly that money has value. You can also separate their pocket money into portions for spending and saving, so they'll learn how to out money aside for the future. 

 

3. set up a bank account

   

By setting up a bank account for your child, you can teach them the basics of everyday banking. It’s worth discussing the statements with them when they arrive – not only so you can explain what each part means, but also so you can check their progress towards their savings goals and praise them as they reach each milestone. You might even open a separate savings account to help making saving fun and easy.


  

4. make money fun 

 

Learning about money doesn’t have to be another chore: there are plenty of games you can use to teach kids financial literacy. From a young age, you can play-act spending situations with your kids, like pretending to ‘shop’ with their toys or using food items in the kitchen. As your children get older, these games can become more advanced. In fact, one of the best ways may be through playing Monopoly – which you can use to teach more complex concepts like rent and taxes.

 

 

5. surf the net  

 

The internet is a treasure trove of information on all things financial.

Here are some of our favourites:

 

MoneySmart – packed with online resources and activities for children of different ages

CommBank Youth App – teaches real-life money skills to under 14s

Kidspot – a popular online parenting magazine with games and ideas for finance education

Bankaroo – a fun virtual bank for kids to learn about saving, spending and budgeting.

 

 

Important information
 

This document contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision. This document has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. ‘Count’ and Count Wealth Accountants® are trading names of Count. Count advisers are authorised representatives of Count. Information in this document is based on current regulatory requirements and laws, as at 23 October 2015, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document.

 

 

 

 

 

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FSG Wealth Management Pty Ltd trading as Feel So Good Wealth Management, 92 163 250 441 is an Authorised Representative of Count Financial Limited © 2016 Feel So Good Wealth Management   Unsubscribe Privacy Policy | General Advice Disclaimer | 

 

‘Count’ and Count Wealth Accountants® are trading names of Count Financial Limited, ABN 19 001 974 625 Australian Financial Services Licence Holder Number 227232 (“Count”). Count is 85% owned by CountPlus Limited ABN 111 26 990 832 (CountPlus) of Level 17, 1 Margaret Street, Sydney 2000 NSW and 15% owned by Count Member Firm Pty Ltd ACN 633 983 490 of Level 17, 1 Margaret Street, Sydney 2000 NSW. CountPlus is listed on the Australian Stock Exchange. Count Member Firm Pty Ltd is owned by Count Member Firm DT Pty Ltd ACN 633 956 073 which holds the assets under a discretionary trust for certain beneficiaries including potentially some corporate authorised representatives of Count Financial Ltd.