Helping our kids get money-smart

Lifestyle | May 2022

Being smart with money is a great life skill for our children.

As adults, we can provide a great deal of this. But how do we broach the tricky, and potentially boring, topic of finances with our rangatahi?

1. Keep it simple

Think how long it takes to get your head around even the most common financial jargon. So, with children you need to start small - and simple.

“Their brains are very much growing and developing. They have a lot less knowledge than we do,” clinical psychologist Sara Chatwin says.

Introducing one or two new concepts or ideas is often enough.

For example, if the family is planning to save for a big goal like a holiday, have your child draw a picture of what that goal looks like and put it on the fridge.

2. Saving it all for you

Financial advisor Lisa Dudson says talking to your child about choices can be a great introduction to the value of saving.

“You can do small, like ‘we can do pizza or we can go to the movies, but not both’,” she says. “Or if they are a bit older, try bigger – we can get a new TV or we can go on holiday, but not both. Let them get a bit invested in it.”

As a child gets older, they can understand money going into a savings account or contributing towards achieving a goal. Seeing savings grow helps build excitement and momentum.

3. Hey Little spender

Pocket money can be a great way to help your child relate with money and its value.

Experts suggest making money tangible, especially for younger children. Look at coins and dollar notes and discuss their worth.

Teaching young children, visually, that money has a form and that spending money means it’s gone will set them up with a good understanding for future learning.

Find out more
Disclaimer: The views expressed are those of the individual featured, speaking in their individual capacity and do not necessarily reflect or represent the views of State/IAG New Zealand. These advertisements do not offer specific advice and you are responsible for your own decisions about financial planning, investment and risk. All information presented is of a general nature, merely for informational purposes and is not intended as a substitute for professional and/or financial advice. Should you decide to act upon any of the information presented, you do so at your own risk.

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