Teaching your kids how to manage their money is an important skill that will help them through life.Children need to understand that money is a limited resource and does not simply “grow on trees” or materialise from holes in the wall.
FIDO has compiled a list of 7 tips for parents to help their kids manage money and start their financial lives with good habits.
1. Encourage them to think about what they want, what they need, and to identify their savings goals.
2. Help them decide what they really want, and to focus on their most important goals.
3. Remind them to regularly set aside a specific amount of their pocket money towards the items they are saving for.
4. Help them to control impulse buying by reminding them of their savings goals when they get tempted to buy things that aren’t on the list.
5. Encourage them to put loose change into a savings jar at the end of each day and to use this little pot of ready cash to cover small personal expenses.
6. Tell them about lay-by and encourage them to use this an alternative to credit.
7. Use pre-paid cards for your children’s mobile phones and make your kids top up the card themselves if they spend them too fast.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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