It’s never too early to teach kids about money and the benefits of regular saving.
The sooner they learn, the sooner they’ll develop good money habits which can last a lifetime.
Why is being Financially Responsible Important?
Recent research we completed in partnership with the University of Newcastle showed that higher levels of financial literacy significantly impacted an individual's potential financial wellbeing and overall life satisfaction.
By teaching your kids to be financially responsible, you are giving them the best chance to establish a healthy relationship with money, which will hopefully allow them to reach their goals in life, whatever they may be.
Establish savings goals
Did you know that one third of Australians are financially illiterate?
Your younger children may have seen a toy they'd like, or an event they'd like to attend, which make a great first savings goal. For teenagers, the goals may become a bit larger, like a video game, a new phone, or perhaps even a first car.
This helps provide the motivation to tuck away a few dollars a week, and with a fun reward at the end of it, they’re more likely to stick to the plan.
Make sure savings goals are realistic
It’s also important to start out small, because aiming too high first up can put pressure on kids, especially if the target seems unattainable.
Their first savings experience should give them a sense of accomplishment on reaching their target.
Monitoring Savings
Work out how much they can afford to save and how long it will take to reach their goal.
Using our handy Savings Goal Calculator can also help.
Track your savings goals
Once your child has their own savings account, show them how regular contributions are made, how they add up and how interest can boost their savings.
Checking the account balance from time-to-time is also a great way to show how their money growing.
Monitor spending
With saving comes spending, encourage your savers to think about how they’re spending and how much faster they could reach their savings goal if they were to change their spending patterns.
Later, you can aim higher, as they know they have the ability – and the patience – to be successful. This will also reinforce the idea that saving is a journey that evolves over time along with their financial aspirations.
Sparkie
Ingraining good saving habits from an early age will set your child up for financial success in the future.
