Kids and Money: 9News Feature

How early is too early to be teaching kids about money? 

Our Senior Wealth Adviser Dawn Thomas was recently interviewed for a segment on 9News about kids and money – and the importance of educating them about saving and spending from as young as four.

“Kids have the superpower of time, meaning if they understand the benefit of getting into investments that create wealth – and they have a head start – it’s going to be so easy for them,” Dawn says.

Here’s the advice for each stage of childhood – and the best way parents can help build positive financial habits…

4 to 7 year olds – prioritise piggy banks and pocket money

Kids don’t understand the reality of money when they see parents tapping their phone or smartwatch at the checkout. Instead, help them become familiar with the value of money, and the various ways they can use it, through a system such as a piggy bank or a series of jars for spending, saving and donating. “The role of physical money early on is quite vital,” explains Dawn.

8 to 13 year olds – explore bank accounts and small share portfolios

As kids get older, it’s time to teach them the benefits of saving and investing through their own bank accounts – both everyday and savings accounts – as well as perhaps setting them up with a small share portfolio that will grow alongside them. “Delay spending now,” says Dawn. ”If you can hold off the impulse buying, you’re going to be rewarded down the track.”

14 to 18 year olds – introduce tax, superannuation and the rainy day fund

By the time your kids are in their mid to late teens, you want to start getting them prepared for the real world. This is the perfect time to talk tax, set up their superannuation fund (and educate them about this important long-term asset), as well as creating a rainy day fund. The habits they create now will be with them for life.

It can be hard to prioritise pocket money and financial education in the current cost of living crisis. But it actually makes it more important than ever to ensure our children have the financial skills and confidence to LIVE WELL™ – whatever life throws at them.

Watch the full clip here.

Want to know more about educating your kids about money? Listen to our podcast START WELL® for impactful conversations about how money can shape a young person’s future.