Raising Money Confident Kids

Welcome to Smart Private Wealth • Learning Centre • Insights

Raising money confident kids.

Set your kids up for financial success by teaching them about money and taking care of your own financial wellbeing.

It can be challenging to help children understand the concepts of spending and saving when they watch you ‘tap’ and ‘swipe’ instead of handing over physical money. Recent research from the Financial Planning Association (FPA) [1] reveals that 68% of Australian parents are reluctant to speak to their kids about money, or they don’t know where to start. But the report also revealed that children whose parents talk to them about money are more curious, confident and financially literate than their parents were at their age. And parents who receive financial advice are much more likely to feel comfortable talking to their kids about money.

Summary

	What type of money parent are you?
	Learning from ‘engaged’ money parents
	How you can look after your own financial wellbeing and role model good money behaviour
	Start a conversation today

What type of money parent are you?

The FPA found that parents fall into one of four categories when it comes to talking to their kids about money:

RELAXED 22%

You feel very comfortable talking to your kids about money and are transparent about money matters, but your conversations are infrequent and unplanned.

ENGAGER 30%

You feel comfortable talking to your kids about money and encourage good money behaviour through frequent and in-depth conversations.

AVOIDER 29%

You don’t feel comfortable talking to your kids about money and have infrequent conversations, or none at all.

TROOPER 19%

You don’t feel comfortable talking to your kids about money, but you do it anyway – even though you often feel awkward or uncertain when doing so.

Learning from ‘engaged’ money parents

Engaged money parents raise children who are equipped to deal with the digital money world, and teenagers who are prepared for the financial aspects of their first jobs.

Here are some actions you can take today to become an engaged money parent:

Give your kids pocket money from a young age so they can learn about spending and saving (the average amount of pocket money ranges from $6.20 a week for kids under nine years old to $17.60 for teenagers) [2]
Play shopping games with younger children to build their financial literacy and help them learn about ‘needs’ vs ‘wants’
Teach your kids about different types of money, e.g. cash, credit cards, in-app purchases, cryptocurrency
Include your children in household discussions about family finances
Use online tools and resources to engage your kids’ interest and attention – like the Government’s MoneySmart website (www.moneysmart.gov.au)
Encourage older children to get an after-school job to teach them about budgeting, tax and superannuation.

How you can look after your own financial wellbeing and role model good money behaviour

The number one reason parents give for being unable to talk to their kids about money is not feeling good about their own financial situation. [3]

Children learn money habits from their parents – both good and bad – so it’s important to be a good money role model for your children by taking care of your own financial wellbeing and building your financial literacy and confidence.

Start a conversation today

Seeking advice from a financial adviser can help boost your financial confidence, with a plan in place that creates a lasting, positive legacy for your children and grandchildren. By taking care of your own finances first, you can lay the foundations for a better financial future for your whole family.

Ready to control your finances?

We can help you to understand the intricacies of investing, taxation, and the ever-changing legislation around superannuation. Our finance advice can really make a difference to you by helping you identify realistic goals, and put strategies in place to achieve them.

DISCOVER MORE DISCOVER MORE

Important information: This document contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision.

[1] Financial Planning Association of Australia, Share the dream: research into raising the invisible money generation, August 2018.
[2] Financial Planning Association of Australia, Share the dream research into raising the invisible money generation, August 2018.
[3] Financial Planning Association of Australia, Share the dream research into raising the invisible money generation, August 2018.

3 Jul

Why the push for companies to do the right thing is good for Australian share market investors

As tensions between Australia’s largest companies, their customers, and the federal government flare, companies such as Woolworths, AMP, and Qantas are placing a higher priority on measuring their community reputation.

Considering an offshore retirement? Four things to do before you go

Australia has become an expensive place to live, so it’s not surprising that the lure to retire at an idyllic, low-cost, offshore location is getting a lot of attention. We discuss the pros and cons.

Getting Your RAD back

Accommodation payments (called Refundable Accommodation Deposits – RADs for short) are one of the most misunderstood areas of residential aged care. Many people don’t realise that a RAD is not “lost” money but is refundable when you leave care or pass away.