Like to give your kids the best start possible in life? A big part of that is helping them to understand how the financial world works, so that they are confident with money when they head out into the world.
But where can you start? Here are a few ideas.
It’s never too early
You can’t start teaching kids too young. If you can find ways to weave conversations about money and the financial decisions you’re making into everyday conversations from the outset, they’ll become a normal part of your family’s daily chat.
When you’re at the shops with your children, talk about what you’re buying and how you’re deciding what to purchase. If you get bills in the mail, talk about what you’re paying for.
Give them opportunity to practise
A great way to get kids to understand the value of money is to have them in charge of the budget at the supermarket. With a calculator or your phone, have them tally up the amount that you’re spending as you go along, and let them know you need to stick within a certain amount. That will help them engage with questions around the best value for money and how to work through a potential trade-off.
If you give them pocket money, you can also encourage them to set up a “jars” system where they save some, spend some, invest some and potentially donate some. This helps to show the power of money over time.
But it’s not just all spending and saving. You can also help your kids to understand the power of insurance by explaining the type of cover you have and what you use it for, and what risks you choose to insure against and why. If you make a claim, explain how it works and what the process is. Normalising having insurance is a big part of ensuring your children protect themselves when they become financially independent.
Start the conversation more widely
Once chatting about money is a normal part of your conversations within your family, consider taking it wider. If you have friends who are also parents, share your strategies with them and see if they have any of their own that you could learn from. Sharing knowledge within a community can be an excellent way to help everyone be a little better off.
Looking for cover for your family?
Being well protected is a big part of being financially healthy as a family. If it’s time to update the cover you have for yourself and your loved ones, or you think you need some new insurance, get in touch with us. Our friendly LifeDirect advisers can talk through the options available and what might be a great fit for you.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.