One of the best things we can instil in our children is a healthy relationship with money. Kids learn about money spending habits by what they see their parents doing (good and bad!).
Here are some Shopa tips to teach your kids about money and savings:
1. Start Young.
If your child is showing an interest in money encourage them. When you’re out at the shops together – let them hand over the cash or card when you are paying at the checkout. Explain how Tap and Pay works. Going through the supermarket can turn into a lesson about money – you can point out which items are expensive, which ones are cheaper options and how much food costs each week for the family. Show them the receipt at the end – did you get any discounts? Talk about how you can be a smart shopper by looking for savings, deals and lower priced items that do the same job as the more expensive ones. These are all life lessons that your children will remember and for busy parents you’re multi-tasking (again!) Go you!
2. Set Up A Savings Account.
It’s never too early to set up a savings account for your child. Money boxes are great for young kids and encourage savings from day one. Get your child to put in any birthday and pocket money and take it into the bank together. The coin collection machines at the bank are great fun for kids! Show your child their bank statement – they’ll feel proud and enjoy watching the balance increase!
3. Talk About Budgeting.
Explain in simple terms how you earn the money and that you need to spend it on important things first, such as food, clothes, electricity, rates or bigger bills like paying rent or a mortgage and if there’s money left you may decide to save a bit and spend treat yourself to something! You can even do a basic budget together like how much a birthday party costs.
4. Good Spending Habits.
Your spending habits influence your children – are you a spender or saver? Show your child what you are spending money on and why. Is it because you got a great discount to bulk buy? Essentials for the house? Or paid a bill early to get a prompt payment discount? The more your child understands the better.
5. Let Kids Make their Own Money Mistakes.
No-one is perfect, and let’s be honest we’ve all spent money on things we didn’t really need. Explain about needs vs wants and encourage your child to think about this before they buy something. It’s good for children to understand if they spend all their money on something they don’t really need it will take longer to achieve another savings goal.
6. Pocket Money.
Show kids the value of money by setting chores for them to do in return for pocket money each week. This shows children that they have to work to earn. Maybe pay them on the same day each week – like a ‘payday’. Things like:
- helping with the family laundry
- meal preparation
- mowing the lawn
- car washing
- walking the dog
Teen Money Tips:
1. Apply for a Credit Card.
Now that they’ve had a savings account for some years it’s time to test their skills with a credit card – they’ll be surprised at first that it’s not just free money! Paying this off will not only help instil good money habits but it contributes to their credit rating when it comes to taking out future loans. They can hunt around online for a low limit card so they can’t get into too much trouble and research the best interest rates on cards. Make sure you stay on top of their spending by linking the account to yours and teach the importance of not spending more than they can afford.
2. Part-Time Employment.
Teen years are a great time to get a part-time job. Start by helping them put together their CV. Their first job will give them confidence, some cash and valuable life skills like learning about payslips, super and tax. It also means they can start working out how to budget for bigger ticket items such as an overseas trip, car or to move out of home.
3. Get Teens to Contribute.
Once teens reach a certain age some parents ask them to contribute in the form of ‘board’ or ‘rent’. If this isn’t your style you can ask your child to chip in for educational expenses such as excursions, laptops or maybe lifestyle purchases like clothing, mobile phones and entertainment.
Want to stretch your dollar further?
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