Barefoot’s advice for cash smart parenting

THE BAREFOOD Investor has called on parents to play a bigger role in helping their kids develop financial streetsmarts.

With the average 18 to 24-year old owing about $4200 on their credit card, Scott Pape, believes parents should take more responsibilty for helping their children develop financial nous.

In his new book The Barefoot Investor for Families: The only kids’ guide you’ll ever need, Pape tells parents to invest time in ensuring their kids are not “normal”.

“Normal is accepting the bank’s offer for an increased credit card limit ... Oh, okay, sure, and a loan for a new car,” he writes.

Pape, arguably Australia’s most influential money expert, said parents needed to act quickly before their kids pick up bad financial habits.

“Will your kids have the financial confidence and the street-smarts to seize the opportunities the world has to offer them?” he writes.

“Well, the reality is that young people aged between 18 and 24 have the lowest levels of financial literacy of any age group, according to ASIC research.”

Pape’s bestseller The Barefoot Investor has sold more than 1 million copies.

His new book has already resulted in huge interest from readers rushing to preorder.

So far, there has been more than 54,000 pre-orders of the book which is due out soon.

It includes helping children set up fee-free bank accounts, learning how to sell second-hand items around the home and saving parents $100 on their household bills.