Educating Kids on Budgeting

Wednesday, February 21, 2018 1:42 pm
Reading Time: 1 minute

The ‘bank of mum and dad’ (hand outs and pocket money) gave out $368 MILLION over summer break. This was mostly spent on lollies.
So how can we help  our kids to make the right choices with money?

Kids learn what is ‘normal’ from the people around them.

When your kids start going to Kindy and Pre – K, this is the right time to start thinking about what you want – which values and concepts you’d like to input into their personalities. At this age start getting them used to making decisions, working their way up from really small things up to the bigger things.

From about 5-8 years, introduce them and start teaching them the idea that you can say no to something now, for something better later.

Pre teenage years: This is the right time to start learning that different choices carry different weight. There are consequences – some choices have more severe consequences. Introduce the value of money and the value of things in dollars and numbers.

The earlier you start, the earlier you crystalise those concepts. Life isn’t easy, so our kids need to know how to make decisions and have the confidence to choose.

Thanks to Elson Goh from EG Financial Services for this insight, listen to the full segment below.

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