Teaching your kids about money
It is never too early to start your kids on the right track to financial security, whether it’s just teaching them to save for a short term purchase or instilling them with a beneficial lifelong attitude towards money. We have prepared some tips which we think will help you get your kids in the right mindset.
While it’s common for us to give our kids a bit of pocket money every week, it can often be used in the wrong way. Pocket money given too freely risks imparting a sense of entitlement amongst our children. Instead, it could be helpful to show that money is earned, and the easiest way to achieve this is to reward them for doing chores around the house. For example taking out the garbage could be $5/per week whereas clearing the table could be $2/per week. Weekly payments can help kids understand what a real life pay-cycle will be like instead of receiving instant money for work.
Make a calendar or a chart for tracking goals and embellish it with pictures and simple graphs. If your son/daughter wants a new bike then set a realistic savings goal based on what their regular income may be. Whether it be a week, a month, or more, kids will be more willing to save if they can see a tangible goal with visually trackable results. This system will open them up to the conversation about longer term savings as they reach their goals and realise the rewards that saving can bring.
Last but not least make sure to teach your kids about banking. Take them with you to your bank when you have an errand or sit down at home and run them through some financial concepts. Look up or print off their transaction listing and teach them what the different terms mean. After introducing them to some of these ideas your kids should be invested enough to take interest in what banking can do for them!
We can set your children up an account to get them started and on the road to financial security. Visit a branch or apply online today!