Giving our kids ‘the best’ goes beyond buying the latest hi-tech toys or funding weekly dance, music, or sports lessons.
One of the most valuable lessons parents can teach children is how to manage money sensibly. And it’s never too early to get started – a UK study found children’s attitude to money is formed by age 71.
Along with demonstrating positive money habits themselves, parents can adopt four simple steps to help children develop healthy fiscal habits that can last a lifetime.
- Encourage regular savings - Many schools offer a school banking program but if yours doesn’t, open a junior savings account for your youngster. It’s a great way to help children develop strong savings habits.
- Aim for a high interest account - Kids quickly grasp the concept of interest - after all, it’s like money for jam. Looking for a high interest account can also teach your kids to compare between financial products.
- Encourage goal setting - Help children set money goals to work towards - like saving for a new bike. Explain how much needs to be saved each week to reach their target.
- Money must be earned - ATMs, plastic cards and EFTPOS are making it harder for children to appreciate the value of money. Asking kids to complete age-specific chores in return for pocket money reinforces that money must be earned.
Talk to us for more ideas on helping your children develop sensible money skills.