Advising children about money and setting up good financial habits is not easy. That’s why ASIC have come to parents’ aid with tips, tricks and resources to help instil the value of money in a tap-and-go world.
Global Money Week (taking place 14-20 March) is an international awareness campaign led by the Australian Securities and Investments Commission (ASIC). The campaign intends to educate parents and children about everything from spending and saving to financial planning and investment. Here are some tips for teaching your kids about money.
At the ATM
Offer an explanation as to where money actually comes from – the old adage that money doesn’t grow on trees will not suffice! Take this opportunity to show your kids the value of money, because invisible transactions can make things confusing.
At the supermarket
Write a shopping list together, research the prices and demonstrate how you can save money if you shop around, shop seasonally or buy in bulk.
Working together on a family budget
Involving kids in financial planning prepares them to differentiate between wants and needs once they have their own money. Cementing the value of money early on can provide a solid foundation for successful saving habits later in life.
Pocket money or part time income of their own
Work with your children to set financial goals and saving opportunities. Giving them responsibility in this way will allow them to see the reward of saving and sticking with their money goals.
Work with the kids to discuss phone plan options, measuring data usage and not going over the plan at the risk of extra fees, or the dreaded no credit!
Research shows that many teenagers are engaged in financial matters already, with 73 per cent of 15 year-olds earning their own money and 90 per cent of children aged 14-17 owning a mobile phone. This is why it’s important to engage children in money matters early on, and to continue to have these conversations up until adulthood (and sometimes even then!).