1. Cash chats
Chat with your kids about money as early as possible, even if they’re in pre-school. Start by explaining that you get money for working at your job. Mention that when you’re paid you can buy the things you want, but once it’s spent, you have to wait for payday to buy more. To us this stuff is simple, but for kids it’s a whole new world.
2. Needs and wants
A trip to the shops isn’t complete without your kids needing something new... right? The next time they ask for a toy, talk to them about needs and wants. Explain that food is essential but stuffed animals are a treat. That way they’ll start learning how to prioritise.
3. The flipside of tap and pay
Cashless payments are on the rise and your kids might not realise that money leaves your account every time you tap your card, phone or watch. Pull up your bank statements and run through a week’s worth of spending to give them the full picture.
4. The good old piggy bank
Piggy banks are an easy way to introduce the idea of savings because your kids can see their money grow over time. But if they’re a bit older, they could stash their cash in a savings account. At this point, start teaching them about online banking, savings goals and interest.
Pro tip: Explain that banks usually have different interest rates and choosing a higher interest savings account could help grow their money faster. Our USave account is an interest savings account.
5. Earn and learn
One of the best ways to teach your kids the value of a dollar is with pocket money. Asking them to make their bed or do the dishes teaches them to work for what they want (and helps you too). For teens, encourage them to get a part-time job so they can start earning a regular income and begin making financial decisions.
6. Budget time
Once your kids are earning their own cash, it’s a bright idea to co-create a budget. It’ll help them understand the importance of splitting their money into different buckets like entertainment, clothes, tech and savings. Learning how to divvy up their wage could help when it’s time for them to adult and pay for rent, food and bills.
7. Bargain hunting
Teaching your kids about discounts could help them become savvy shoppers. When getting groceries, ask them to look at the cost per unit and compare brands to spot value for money. Try making it into a game where they pick two of their fave snacks and work out which one’s the better deal.
Teaching your kids about money takes time but starting those cash chats early is the first step. Slowly introduce budgeting, bargain hunting and savings accounts to help them become expert money managers. And if they do their chores, happy days!
Before making a decision to acquire USave, you should obtain and consider the Terms and Conditions available at ubank.com.au. USave is issued by UBank, a division of National Australia Bank Limited ABN 12 004 044 937 AFSL 230686.