Jenny Dikranian, Compare Club | September 2024
Many Aussies are feeling the pinch during the cost of living crisis. Some people are enduring mortgage stress while others are paying enormous amounts in rent and have priced out of the property market.
So that got me thinking about my kids and how things will look for them. I read somewhere just the other week that the average age of the first time home buyer is now 40. Yes… 40!
While I have no idea at what age my kids will be able to afford a property – if they’ll be able to afford to buy a property EVER – or whether by then, they’ll be turned off at the thought, I have been working with my hubby to teach them about the value of money and saving.
Here are three ways we’ve been doing it…
1. Saving accounts
From day dot we opened up bank accounts. Yes, we’ve been making small financial injections so they can earn a bit of interest, but as a rule any birthday money or Christmas money goes straight into their account. No buts. And nothing comes out, for now anyway. This teaches them good financial habits such as regularly saving. And as they get older, we hope they’ll learn to set goals for their future.
2. Open conversations about money
My hubby and I often give little pep talks about money… and we paint a picture of where we can save. We often split things into two categories. The ‘must haves’ AKA needs and the ‘nice to haves’ AKA wants.
We feel this is an important part of educating kids about spending money. By knowing the difference between needs and wants, fingers crossed that as they grow up they’ll address the temptation for impulse buys. Who knows, by preventing frivolous spending, that in itself may prevent them from racking up debt in the future.
And as for saving, it’s not uncommon now for one of my kids to ask how much we saved on a grocery shop! They know the drill and it’s become almost a guessing game. Last weekend it was around the $80 mark, but I will admit that it was a BIG shop!
3. Pocket money as a reward for chores
Have you ever heard of bob-a-job? It’s an oldie but a goodie and it’s my favourite way to teach kids about the value of money.
In my home there’s no such thing as a free ride. Everyone has to pull their weight. The more my kids do, the more they earn. Do nothing and guess what – there’s no pocket money.
From taking out the rubbish and vacuuming, to washing cars, sweeping leaves and skimming the pool. It doesn’t matter if it’s indoors or outdoors, you name, I’ll get them to do it. But don’t worry, there’s no slave labour. The responsibilities are age and height appropriate!
As you’ve probably guessed, this is a win-win. It frees up my time, and doing the hard yards means they’ve earned their pocket money while contributing to the household.
It all adds up
As a parent, you can play a role in shaping your children’s attitudes to money. The outlook for buying a property may appear to be out of reach. Teaching them early on how to make smart decisions with their finances could open up other opportunities to maximise their hard-earned money in adulthood