Want The Best For Your Kids? Then Give Them Great Money Advice Starting Now!
Everyone agrees the cost of living and the ability to afford even the simple things in life is becoming increasingly difficult. Consequently, now more than ever, Aussies must be confident and educated when it comes to managing money. Results from a recent research report conducted by Fair Go Finance has exposed a major finding to determine the likelihood of which Aussies will be able to do so.
Why Teaching Your Kids About Money Can Make A Huge Difference
Ironically, the answer is simple. Australians who receive good money advice from their parents whilst growing up are far more likely to have good financial habits and achieve their financial goals.
The survey found more than half of those who received good advice from their parents were far more confident with their finances, with six out of ten also setting annual budgets and goals. On the other side, those who never received any financial guidance from their parents tended to feel constantly overwhelmed when managing their finances and over 28% of these were struggling to even know where to begin.
Paul Walshe, Fair Go Finance’s Managing Director, is driven by the survey results, stipulating that we can’t underestimate the power of helping our kids to establish good financial habits as they grow up.
Here are some of Paul’s top tips to help teach kids the value of money:
- Don’t just give your kids money when they ask for it. Get a reward system in place and have them do tasks to understand the concept of earning.
- Teach them about savings and goals. Set up a savings plan for something they would like to buy and acknowledge each step from start to finish.
- On occasion, match their savings target to give additional incentive and to keep them on track.
- Open a Bank savings account and show them how to deposit and track savings.
Help and resources for money management
If you’d like even more information about teaching your kids about money and give them an advantage, the Money Smart website has some great information.