![Teaching kids about money Teaching kids about money](/images/transform/v1/crop/frm/Fjc97JFBmLYW9DSUSgjdD/9e316325-38eb-4ce0-a0bd-fa35e9e761b1.jpg/r0_92_1530_1085_w1200_h678_fmax.jpg)
As parents, ensuring our children and grandchildren are happy and successful is one of our greatest priorities.
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We teach our kids to be kind, compassionate and resourceful and remind them that if they work hard, success will follow.
However, I believe one of the greatest indicators of their ultimate prosperity is whether they 'understand' money and are good with it. Unfortunately, financial education has become largely forgotten in today's society.
Now, before you get all, "Ben, money doesn't buy happiness"' just hear me out!
Money itself may not necessarily ensure your or your children's happiness and success, but promoting a healthy relationship with money, and a sound level of financial knowledge, will have a lot to do with it.
Most children are not born naturally 'bad or good with money'. Some may have developed poor monetary habits from their parents, friends but most likely the media.
Unfortunately, many have not been given the opportunity to develop their financial skills or attach strong values to money and this is where the problem lies.
So, whose responsibility is it to teach our young ones these skills? Really, schools should - but the fact is, schools don't, so the obligation falls squarely with family. Mum, dad, aunties, uncles, grandparents, I can tell you right now, the gift of teaching your kids about money will set a solid foundation for their future success and happiness.
If you want your kids to be 'money smart', it's crucial they develop financial skills from an early age. It's never too early to start talking about money; likewise, it is never too late.
This education need not be difficult. Incorporate constructive financial discussions into your everyday family conversations.
Talk to young kids about pocket money, the difference between paid and family jobs, budgeting, saving, the costs of 'stuff' - practise at the supermarket, when paying bills or when deciding whether to buy a luxury item. Talk to them about the basics such as how to budget, spend wisely and save.
As children get older, talk them through the pros and cons of saving to buy a home, credit cards, personal loans to buy cars, investing, superannuation and budgeting.
Ultimately teaching your kids how to be money smart will establish good money habits and pay dividends for life.
Help start the conversation with your children, www.moneysmart.gov.au/life-events-and-you/families/teaching-kids-about-money or check out the book The Barefoot Investor for Families to get some great ideas.
- Ben is an authorised re presentative of Charter Financial Planning. This article offers general advice only. You should seek advice tailored to your particular circumstances before taking action.