12 Nov How important is it to teach our kids the value of money?
We’ve all heard of the BoM&D (Bank of Mum & Dad) some of us are the bank and some of us are customers of it. The concept isn’t a new thing but with property prices in Australia climbing to all-time highs, it means larger minimum deposits for the purchase of their first home. So when should start talking about the value of money and saving with our kids? Experts say that by “age three, your kids can grasp basic money concepts. By age seven, many of the habits are set.”
Watch what some kids think about money below:
The truth is, children first learn about money and how to manage it — earn, spend, save, invest, give some away — from watching and listening to adults at home; although teachers, extended family and peers have an influence as well. When we share positive behaviour and are frank about money, we create realistic expectations for children and empower them to become financially capable adults. In fact, most parents agree that today’s kids are far more confident, curious and capable than they themselves were as children. So why not weave smart money lessons into everyday moments?
For handy money tips for kids of all ages, you can click here to download an e-Book from the Financial Planning Association of Australia (FPA).
The key takeaway from this all is, save young, start small and harness the power of compound interest.
How can we help?
As part of our collaboration with MyProsperity, our clients are now able to download the app: kwids from the app store. It allows kids and parents to view their ongoing spending, encourage kids to save for a goal, set chores (and automated reminders) to earn pocket money and celebrate their success when they hit a goal.
It’s not only kids that need help with money, but parents also need help with funding their kid’s education. See our previous post on saving for your child’s education here.
On the more strategic side of inter-generational wealth, we can help you understand the benefits of family trusts and look at more tax-effective ways of passing on wealth to the next generation.
If you would like to know more, talk to Michael Sik at FinPeak Advisers on 0404 446 766 or 02 8003 6865.
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