IN EXCEL LEARNING
It is never too early to learn important lessons about finances
PERSONAL finance is seldom a topic taught in schools, but it’s an important one. Things like what to look out for in a superannuation fund, basic investing, how to file your taxes, and how to shop around for a home loan are often topics for young adults in their 20s, but Scott Pape, the Barefoot Investor, says teaching teens these sets them up best for the long run.
“They will make mistakes and that’s good,” he said. “You want them to make mistakes when they are 15, not 35.
“It’s a really wonderful way for young people, still in the safe confines of the family home, to get a dose of the real world.”
As part of children’s financial literacy, Pape also recommends high schoolers get a part-time job.
“My view is at age 15 a teenager should be forced by their parents to get a part-time job,” he said.
“You get to teach the about bank accounts, superannuation, and they get to learn about cash.
“No matter what school they’re at, you are not getting a great education if your teenager isn’t flipping burgers somewhere for the minimum wage.”
While ferrying kids to part-time work and teaching them to juggle their shifts among school and extra-curriculars, Pape said the benefits were well worth it and that one or two shifts a week could set them up for success.
Pape’s The Barefoot Investor series is a national best-seller, and in his edition The Barefoot Investor for Families, he promises young families can get more financially savvy in as little as three minutes of reading and learning a week.