Children whose parents have good money behaviours are often better equipped to manage their money, no matter how old they are.
Saver Plus program manager Dan Crotty says because of this, parents should talk to their kids about money as early as preschool.
“This will help establish good money habits for life. It’s easy to find ways to talk to children about money, no matter how old they are,” he said.
Mr Crotty said these lessons are even more crucial as we become an increasingly cashless society.
“Children no longer have a tangible connection to money as we move to digital banking and tapping cards at the checkout. They also have little understanding of how credit works and the potential impact of debt on their finances.”
Savings tips for kids from preschool to high school
Pre-school
• You need money to buy things
• Money includes notes and coins
• You earn money by working
Primary School
• Comparing prices and shopping around before you buy something is a good habit
• You need to be patient when saving up
• You can choose how to spend your money
• Let your kids pay for small expenses with their pocket or birthday money. This helps them work out how far money goes
High School
• Doing a budget helps you work out how you should spend your money
• Credit is money that you borrow and have to pay back with interest
• It is good to have savings in case of a money emergency
• Keep track of mobile phone data and expenses to make sure you don’t run out of credit or get a larger bill than you expected
Source: ASIC MoneySmart website: www.moneysmart.gov.au/life-events-and-you/families/teaching-kids-about-money\
Saver Plus facts
* The Brotherhood of St Laurence and ANZ developed Saver Plus in 2003. The program is funded by ANZ and the Australian Department of Social Services. Saver Plus assists people on lower incomes to develop a savings habit and achieve a savings goal.
