10 WAYS TO TEACH

YOUR KIDS FINANCIAL

LITERACY

How to make your children money-savvy

#1 START EARLY

It’s never too early to teach a child some money skills.

Talk to them about what things cost.

Teach them how to save a portion of their pocket money.

Help them understand the value of money.

#2 TAKE THEM TO THE BANK

Show children how a bank account works.

Open a juvenile/ child savings account for each of your children.

Start early so they learn that this is the key to successful money management.

#3 GIVE THEM AN ALLOWANCE

Decide a monthly allowance - and then let them manage it.

Don’t top it up if they run out!

Let them see money is finite, and they must control spending urges.

#4 DON’T BE NEGATIVE ABOUT MONEY

Don’t talk about money or wealth negatively – it will give your offspring unhealthy

perceptions.

Let your child respect rather than fear money.

Ensure your kids do chores around the house for cash.

Encourage them to have a part-time job.

Understanding that hard graft = real money will teach appreciation.

#5 GET THEM EARNING

Take teenagers through your utility bills and annual costs like insurances.

Help them understand the cost of filling the bath or leaving lights on.

Make them energy-conscious around the home (a double win!)

#6 EXPLAIN HOUSEHOLD BILLS

Get kids to set aside a percentage of their pocket money from the outset.

Encourage your child to save for big purchases.

These savings skills will last a lifetime.

#7 ENCOURAGE THEM TO SAVE

Set a good example - track, budget and manage your own financial affairs.

Let children see you doing your budgeting.

Walk them through different types of weekly, monthly and annual outlays.

#8 STAY ON TOP OF YOUR OWN FINANCES

You WANT your child to run into money issues before they become adults!

You can advise where they’ve gone wrong and how to put it right.

A minor mishap now lessens the risk of a big mistake later on...

#9 ALLOW THEM TO GET IT WRONG

A pre-paid card is like a credit card, but limits how much can be spent.

Some of your teen’s allowance could go on the card – it’s safer than cash.

It’s a cautious way to introduce them to credit cards.

#10 BUY A PRE-PAID CARD

1. Start early

2. Take them to the bank

3. Give them an allowance

4. Don’t be negative about $$$

5. Get them earning

6. Show them your bills

7. Encourage them to save

8. Stay on top of your own finances

9. Allow them to get it wrong

10. Buy a prepaid card

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10 WAYS TO TEACH

YOUR KIDS FINANCIAL LITERACY

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