Kristy and Candice have combined their vast knowledge of the financial services industry and parenting skills to provide you with some skills on kids and money - by telling you about the mistakes they have made!
Kristy starts us off.
I have been working in the Financial Advice industry for over 12 years and have a real passion for banks, advisers and the industry as a whole to get into our schools and teach our kids the fundamental lessons of budgeting, saving and banking. In my opinion, this should be a compulsory learning for all children about life skills such as applying for a tax file number, filling out a job application form, filling out a bank application form, writing a resume, going for a job interview etc.
When I was growing up, I banked what little money I could through a school Dollarmite Account with the Commonwealth Bank, like most my age. When my turn came to start teaching my own children about money, I automatically went for the same thing for my son when he started school at 4.5.
I diligently put $2 into the pouch and gave to my son to take to the office each week for banking. I forgot to actually talk him about why he was doing this each week and about saving.
Now my two children, 8 and 4, both nag for this new toy or that new game, but both has been taught that they need to earn these things and contribute financially as well. Both do jobs around the house to earn pocket money and put away in their money boxes, while I contribute a small amount each week to their personal bank accounts.
The banked money is for the future, and I must admit, it could be doing more that the small amount of monthly interest we get. However, there are no account fees and no minimum amounts or conditions on their accounts.
The money box money is for them to save for that new toy, game or experience the so desperately want. My son 8, has slowly been learning the concept of saving, and it has been a tough lesson for him. I sent him on an assignment at school one day after an argument that morning over the amount of pocket money he earns. He thought he should get more than the $5 cash he earns each week. I told him he had to ask 5 kids at school how much pocket money they get and what jobs come with that.
The findings were interesting, and he decided he was very happy with what jobs I ask of the $5 each week he earns. He now very excitedly stands in EB Games pricing and dreaming about the new Wrestling game he wants and can tell me exactly how many more dollars (and weeks I might add) he has until he can buy it without any need for a calculator or input from Mum.
We talk about money often in our home, its why Mummy goes to work, its why Mummy works late at night, its why we can afford to go to the footy, its why we can afford to eat. The children now generously offer to pay for their own ‘special’ items on outings and are growing a solid knowledge of saving and the concept of money. They both absolutely whip me at Monopoly frequently as well lol!!!
The information provided in this BLOG is of a general nature only and has been provided without considering your objectives, financial situation or needs. Because of this you should consider whether the information is appropriate considering your objectives, financial situation and needs.