TEACHING KIDS TO BE
FINANCIALLY SAVVY By Jo and Carl Violeta
s parents, we want to do everything we can to guide our children towards becoming happy and fulfilled adults. Financial literacy and sound money management skills are two of the greatest gifts we can give our kids.
Worryingly, recent research shows that over 40% of Australians report their financial knowledge as being low to very low. Almost 1 in 3 Australians report having no savings at all. Collectively, as a nation, we owe over $30 billion in credit card debt. Focusing on financial literacy at home can help kids learn how to save money, make smart financial decisions and grow into financially savvy adults. By following a few simple, practical strategies teaching kids about money can actually be fun and easy (we promise).
Peninsula Kids – Summer 2017/18
Talk about money at home To build kids financial literacy, make money and finances a regular topic of conversation in your home. Conversations about money can become more detailed and sophisticated as children get older. The way you talk about money to and in front of your kids should be realistic and positive to help them develop a healthy money mindset. Peninsula based Psychologist Rebecca Underwood advises that it’s also important to role-model healthy money habits. “By modelling constructive behaviours and healthy spending habits, we create a solid foundation from which our children can learn through simple observation. From here, we are able to help our children learn to guide their own behaviours. The old adage ‘Monkey see Monkey do!’ comes to mind” said Ms. Underwood.
Published on Nov 23, 2017