We all want the best for our kids. We buy them everything they need and sometimes far too much of what they want, and yet somehow, it’s never enough and they’re constantly wanting more.
Kids are constantly asking for things they want – lollies, toys, canteen money etc. Take this opportunity to start a conversation about money and how you earn it and what you need to spend it on. Discuss the differences between needs and wants and how it’s important to earn and save for things they want.
Financial Education is a fundamental life skill that can be taught from a young age. Learning the basic concept of money, earning an allowance or pocket money, and knowing how and when to spend or save is a great place to start.
Start with a piggy bank so your child can watch their savings grow before introducing a kids savings account.
Start with pocket money, earning money for helping around the house and then allowing them the choice to spend or save it will empower them to make their own decisions to learn and grow.
Get your kids involved! Use everyday situations like paying bills, buying groceries, planning a trip, or buying a gift.
Have a budget they must stick to, this will have them checking and comparing prices, adding up all the different costs and potentially deciding what is most important, comparing deals, working out what is better value and how to work out the price when there are varying discounts.
Rather than letting the money “burn a hole in their pockets” and spend it the first chance they get, talk about savings goals and what they can work towards.
There are apps for everything these days and pocket money is no different! There are many earning and learning money saving apps for kids which allows you to allocate a list of jobs and what they’re worth. When pay day comes, you approve the payment which transfers money into your child’s account. In their app, they can then choose to spend or save their earnings, anything they elect to save is not accessible on their bank card unless they transfer it across to their spendings account. This will have your children thinking before spending their hard-earned dollars.
Kit by Commbank, ZAAP & Spriggy are all popular pocket money apps, each with different inclusions. I suggest doing your own research to work out which suits your family needs best.
Getting your kids involved now will teach them a valuable skill for life and set them up for financial success in the future.