Kiddipedia Financial Support Information
- Speak about money
Break the generational cycle of money taboo. Many of us would have grown up in families where money wasn’t spoken about. Talk about how hard you must work to earn money and how nothing comes for free. Hard work is the route to wealth for most people. Ensure you are always leading by example. Teens can spot a hypocrite so make sure you are leading by example when spending money and saving. Teens will learn these behaviours from you.
- Visualise
Make money as visual as possible. Make sure your teen knows how much money they have in their bank account or savings account. Ask them and start the conversation, what are they saving for and how long they predict it will take them to reach their goal? Consider setting up two bank accounts so they can transfer money to a savings account and see it grow.
- Involve them in the household finances
Start by getting them to do the shopping. This increases an awareness of what things cost and how they need to budget. Don’t let them tap and go.
- Financial rewards
Whatever it is make sure you commit to it. By the time they are teens, most kids have been earning an allowance through chores at home. Make the accountable for the job they must complete. Keep a record and have a financial cost to not completing chores ie. no chores, no pay.
- Financial knowledge
Teens are never too young to learn about investing. This can be in the form of growth and income, property prices, house deposits, shares etc. The more you talk about this the more it becomes normal behaviour.
Has the financial world for teens and young adults changed?
Covid but more importantly lockdowns have changed the financial world for teens in two ways. The first is the increase in online shopping, teens are given vouchers and spending them online as they cannot go out. They are buying vouchers as gifts for others as they are unable to go out and purchase. This takes out the thought process of how to spend those $’s. The other change is employment for teens. Areas in which teens would typically be employed such as retail and hospitality have faced lengthy closures and significant job losses.
How have you personally approached teaching your teenagers about money?
I try as best I can to be open with my girls about money. I have encouraged both of them to study accounting or economics as an elective at school. They have been responsible for their own money from an early age. I am aware of the dangers of our tap and go society and make sure they know how much they have in their account to help with their budgeting and I have regular conversations with them about what they are saving for and how on track they are with their goals.
When my eldest daughter started to drive, she was under no illusion of where her first car was coming from. I matched everything she saved which was a good incentive for her to save more. She worked as soon as she was legally old enough so had a good part time income coming in. My youngest will be encouraged to get a job as soon as she is old enough.
Recently, I’ve sat with my 18 year old and linked ATO to myGov and helped her to completed her first tax return. We talked thorough the how and why of mygov to help start an understanding of the importance of knowing this. I also encouraged her to download the petrol app (petrol spy) and talk through the pros and cons of distance to travel to buy cheaper petrol.
I refuse to buy incidental pleasures such as alcohol, home food delivery (outside of meals) and travel and make sure they factor this in to their expenses.
I would love to see schools implement a money program at the higher year level 10-12 to start getting them ready for the real world and learn about investing, credit and afterpay.
Endurance Financial is particularly driven to help women overcome the gender biases that stand in the way of personal achievement; lessons learned after thriving in typically male dominated environments. Amanda draws on her 20 years of financial advising and life experiences to educate and mentor in a relaxed and relatable way to support women overcome their fear of finances and own their financial future.
Amanda renews personal and business confidence and provides the financial knowledge and confidence to have a great relationship with money allowing you to become your own CFOs (Confident, Focussed & On top of their Finances) through her courses and mentoring programs.
