Money and Kids
If we took a survey of Aussie kids under the age of 16 as to their must used phrases, we think the top three would be:
- “I’m hungry”
- “Why isn’t the internet working?”, and
- “Can I have a …”
That last one can be a real killer for parents. All parents want to provide their kids with a good start to life. Yet pester power can make even the strongest parents vulnerable to bad spending decisions. That’s why we created this section Money and Kids. Here are our top 4 ideas to help you starting making better decisions for your family.
- Don’t use your kids as a reason to spend without thinking
As a parent, it’s very easy to spend money on kids. No matter how old they are, they’ll always need and want something. This doesn’t mean that you stop spending money on them, having a budget planner isn’t about denial. Spending, even on your kids, should be planned. Baby products, toys and treats, childcare, sports and activities, school expenses – it all adds up. Me mindful of their pester power too – the following ideas will help you manage this and teach them good habits.
- Teach the lessons of needs versus wants
Less than 100 years ago, children had a very different way of life to the life they have today. It’s true their quality of life back then wasn’t anywhere near as high as it is now, with many children starting work well before their fifteenth birthday. Somewhere along the way, the line been a need and a want became blurred. Wifi, iPads, mobile phones and Netflix have in many households are now considered ‘needs’ by kids.
The secret to managing expectations is to start early. Have conversations about buying things today and saving to buy things tomorrow. If you’ve got older kids, then show them their own budget planner against their pocket money or first job income. They have the choice like you do to spend less, save or earn more.
- Pocket money rules
Pocket money is the obvious area you can teach your child about earning, saving and spending. As an adult. In order to be able to spend, you need to earn and save. In order to spend more, you’ve got to earn more or spend less in other areas. What the pocket money amount depends on what you can afford and the kind of spending goals your children have. Remember, you can’t go and buy a new car after one payday – the same should probably go for them if you want to teach them about real life.
- Paying for the kid’s education
Once you stop and plan your future, you’ll quickly realise how quickly the costs of having children add up. Just multiply that budget planner figure out over a number years! Education is one of the things we know that makes a radical difference to the future earning capacity and lifestyle of adult children. At Advanced Financial Planning Solutions we believe that sharing your values towards money and ensuring your kids have the opportunity to learn will be the key to your family’s success over generations. So perhaps one of your savings goals might be higher education fees.
This list is by no means complete
There’s at least a book of content on Money and Kids. Unfortunately there’s a limit to what we can fit on our website. We do however encourage all parents to be mindful of Money and Kids matters.
If you want to explore this topic more, we suggest this teaching your kids money page, from the Australian Securities and Investment Commission. We like it because:
- It covers in more detail about Kids and Money is an important topic
- It offers practical advice depending on how old your child is
- It’s nonsense free and easy to understand
We can help too
As a part of our family financial plan, we’re happy to share with you what we know about Money and Kids that we implement for the families of our clients.
Helping families is what we are passionate about. We help clients plan situations that work for them now as well as advance their future financial plans. Often our clients achieve more than they think they can, after they receive our advice.
Your first appointment is at our cost, to see how we might assist.
Is that the kind of financial planning support you’d like to access to help your family get and stay ahead?
If so we’re here to help you.
Call us on 0411 331 870 or contact us and ask for an appointment. Your first appointment is at our cost, to see how we might assist.