Helping kids understand the finances

BY LEANNE MCDONALD, DIRECTOR AND SENIOR FINANCIAL PLANNER OF CREATE FINANCIAL SOLUTIONS

You eat together, play together and live under the same roof – so why not save together?

While many parents bear the brunt of their brood’s finances, it’s a good idea to consider making household saving a family affair by involving kids in the process.

It is never too early to teach your children about money, shape positive habits, and instil valuable life lessons. By getting the whole family on board, not only will you help your kids develop into money-savvy adults, you’ll also play a helping hand in creating a prosperous future for you and your spouse.

Plan for the future: A goal without a plan is just a wish, so it’s important to take the time to sit down as a family and discuss your financial priorities for the year ahead. Whether you plan to buy a new family car, have an overseas holiday or upgrade to a bigger home, establishing clear goals will help you to prioritise what’s important. Get your kids involved by asking them what they hope to achieve this year. Be a positive role model: Kids form many of their habits and attitudes early on by watching their parents, so it is important that you demonstrate good financial practices whenever possible. You can teach your kids to be savvy spenders by showing them how to shop around for the best price. Spread the load: Kids should be made aware of how their actions impact on household finances early in life. While younger children shouldn’t be expected to make financial contributions, they should be able to contribute around the house. Simple measures such as turning off the lights, having shorter showers and unplugging computers from the wall at night can all make a big difference to household running costs.