Top 6 tips to help get your kids savvy with money
We all wish for our kids to have a life free of financial stress – wouldn’t that be nice? But with the current cost-of-living stress on many minds, it’s good if your kids learn some money management skills sooner rather than later. Our advice? Don’t leave it up to their school and class teachers – many skills are learnt at home.
Key learnings covered in this topic
- Money management for kids
- The importance of budgeting as a family
- How technology can help you
Here are our top 6 tips to help get your kids savvy with money.
1. Talk to them about money
You’ve probably heard yourself saying at some point or another, “money doesn’t grow on trees”. Having dinner conversations about weekly spending will help your kids understand the value of money, and the importance of making considered purchases. That way, they’ll be better prepared to manage their money in the future.
2. Mind your own money management behaviours
Kids learn most of their behaviours and attitudes from you – so make sure you’re setting a good example. Be real about how things stand – what you can afford, what you can’t, and how things are shaping up for the future. And be consistent, don’t complain about your rent or mortgage costs, then next minute use your credit card to splurge on a new fancy gadget or endless Uber Eats. And while it’s important to try and shield them from your money anxiety, it won’t serve them well to paint an unrealistic, rosy picture either. Do your money skills need some work? We have some more great tips on how to track and change your own spending habits.
3. Budget as a family
Include the kids in family budget discussions to help them understand what it takes to give them the life they currently have. Include them in financial decisions that will affect your family’s future. Moneysmart’s budget planner is a great tool to help get you started.
4. Build their own bubble economy
Kids don’t realise the value of money unless they earn it. Give your kids opportunities to earn some pocket money – for example, taking the rubbish out, emptying the dishwasher, walking the dog – to learn how to save and budget.
5. Encourage your kids to save
When your kids have their eye on the next big thing, don’t just earmark it for a future gift. Instead, challenge them to save up for it (or part of it), so they learn to appreciate what they have.
6. Harness technology
Goodbye piggybanks and hello apps. These days, technology has made it easier than ever to help parents and kids manage pocket money, monitor spending habits, stay accountable with saving goals, and generally gain independence around money. Spriggy, Bankaroo, iAllowance are just a few apps you could try.
Keen to improve your own super and money management skills?
Your kids will learn more from you if you better understand your own finances. We offer webinars and events on a range of finance and super-related topics at no-extra cost to you, to help get you on track for a better financial future. And better still, you might learn a few things that you can pass on to your kids, to help them feel confident about their own finances – you’re welcome 😉