AGE APPROPRIATE TIPS FOR RAISING MONEY-WISE KIDS
When all it takes is the tap of a plastic card to buy just about anything you need, how do you teach your kids the value of money? A cashless society may have some benefits, but it can make it very difficult to teach our kids that money does not grow on trees, when there is no money changing hands!
With no perception that money comes from hard work, and only seeing the treat in their hand that didn’t require handing over cash, parents are starting to struggle to instil money-wise habits in their kids. If you are struggling with the concept of teaching your kids about money in an increasingly cashless society, here are our pick of the best age appropriate tips for Australian parents.
Tips for toddlers
Clearly any money-wise tips need to be very basic at this age, but there are two easy strategies you can use to get them in the mood. First, you can show them that pressing buttons at the ATM gives you cash and second, you can take this money into the store and show them that you use this money to buy groceries.
Tips for pre-schoolers
This is the time to start introducing a few small chores for payment, teaching them that they can receive cash for doing a job. It’s also a good time to talk about saving vs spending their money, and if they choose to spend it on sweets they will soon learn that they have nothing to show for their money when it’s gone!
Tips for 5 to 8-year kids
At this age your child starts to really learn about the concepts of immediate and future gratification, making this the ideal time to help them start a savings plan for their pocket money. Encouraging them to save for a special toy, new bike or skateboard, helps them to integrate money-wise habits into their lives, something that will stay with them forever.
Tips for 8 to 12-year kids
At this age, you can start to discuss the family finances with your child (in simplistic terms of course), helping them to understand that every dollar spent has to be earned. Giving them a job that requires managing a budget is a great strategy for teaching them money-wise skills. For example, you could put them in charge of the budget for the family’s pizza night, giving them hands-on experience of managing a monthly budget and making it last for 4 weeks!
Tips for teenagers
Teenagers always want the latest technology, fashion and gadgets and are always pestering their parents for money. A great way to make them more money-savvy is to agree to pay half for their cherished possession if they find the best price, whether online or in-store. This will definitely motivate them, but make sure that they show you their research to prove that they have found the best price. This teaches them some very valuable shopping habits, which hopefully will help them to become financially responsible young adults.
These tips will help parents to educate their children about money in an increasingly cashless society. If you want your teenagers to learn more about budgeting and taking control of their financial future, why not give them an appointment with a financial planner for their 16th birthday or when they start their first job (whichever comes first). Call Amanda McCall on 07 3356 6929.
or book an appointment via email.