Five Easy Tips on Teaching Kids about Money, Budgeting and Saving

VICTORIA, Australia February 2015 – Talking about money, budgeting and saving is an uncomfortable topic that does not sit well with most people, especially as discussion topics for kids. What seems to be happening more often as a result is when children enter adulthood, they are ill-prepared for budgeting, planning for the future and saving. Consequently, they have poor money habits and a general lack of financial knowledge.

Passionate about teaching kids about money and how it works, The Hendrie Group director, Caren Hendrie, thinks it’s important to create a comfortable conversational environment for kids, where the awkwardness around money is eliminated. “Schools don’t teach responsible money habits to children, and we’re not going to change the school curriculum tomorrow, so it’s up to parents and families to change the money attitude. There needs to be a shift in the discussion topics for kids at the dinner table, to cover themes about money, financial strategies and good spending habits.” www.hendrie.com.au

The Hendrie Group, a family-owned financial services company, has been delivering advice to parents for over 35 years, and understands the monetary pressures families face with children moving into adulthood. In order to ease those stresses, The Hendrie Group shares five tips on how to teach financial responsibility to young ones.

1. Let kids make their own money decisions and get them to consider consequences when they make mistakes. When they’re a little older or they start earning money, teach them to invest their savings.
2. Play counting games to show them to calculate change. This skill will build their confidence with using money, and save them from being ripped off.
3. Children should know that earning money is a lot harder than saving it, and spending money is a lot easier than earning it. Caren says, “Start teaching them this as early as possible by making them plan and save if they want to purchase something. Control their quest for instant gratification and retail therapy.”
4. If the budget is tight, give a brief explanation of the household expenses to a child if they would like something that’s not currently affordable, and let them accept ‘no’ for an answer. “Explain to them why it’s important to stick to the family budget. You might like to say that by sticking to the family budget in that moment, you will be able to enjoy a treat down the track,” Caren says.
5. Teach them the value of money and how to weigh up their choices. If a child wants something that is outrageously expensive, offer an alternative that is cheaper, or give them the option to make up the difference. Caren says, “Not only is this a good way to teach them the value of money, but if it’s something like a pair of shoes, they may also think a little differently when they outgrow them in six months.”

Contact Information

Caren Hendrie

Financial & Small Business Advisor (BA Hons; CFP)

The Hendrie Group

(61) (03) 9725 2533

support@hendrie.com.au