Text Size
Ask a child where money comes from and they will most likely say the ATM or their parents’ credit card. By helping children understand the value of money, you can help them become financially stable in the future.
If you can afford to, it’s lovely to be able to treat children now and again but do it too often and it will be something they come to expect rather than appreciate. Giving children the means to work towards their financial goals – saving for a new game or being able to visit their favourite theme park – not only means the end result is more rewarding but it also encourages a healthy attitude towards money and saving.
Tips for helping children understand the power of financial independence:
· Make them think about what they want. Like many adults, children are prone to impulse buys but when made to consider how much they really want something, they may decide it’s not so important.
· Open an account with an actual passbook. By seeing their savings add up week-on-week, children will be encouraged to keep going and less likely to dip into their savings.
· Get them to pay back money they borrow, even if it’s only a couple of dollars. A dollar here and there soon adds up and, if not repaid, can lead children to believe they can get something for nothing.
· If you have more than one grandchild, set them a fair competition to see who can reach their savings goal first.
· Give them an old jar and encourage them to fill it with loose change. This quickly amounts to enough to buy something nice, or put in their bank account.
For more information on teaching children about the value of money, understandingmoney.gov.au.
One of the best ways to save money, is not overspending on things we don’t need. Seems like a simple enough idea but keeping track of what you actually spend your money on each month can be an eye opener.
Creating your own spreadsheet in Excel is the easiest way to keep track on the money that’s coming in but, more importantly, the money that is going out. If these two figures don’t balance, you could be storing up problems for the future.
Perhaps you’re not so confident with Excel or need a little guidance on how to create and maintain a budget? The Australian Securities & Investment Commission (ASIC) has useful tools, tips and advice on creating a budget and managing your money.
For more information, visit Fido.gov.au.
Ever been charged $30-50 for exceeding your bank account overdraft limit? National Australia Bank has announced they will be abolishing overdrawn account fees.
Banks make over a billion dollars a year from fees, hitting us where it hurts - our hip pockets. It’s interesting to learn that almost one in every two complaints a bank receives is about an overdrawn fee from personal accounts. Depending on your bank , this can result in a fee ranging from $30-$50. Overdrawn account fees are charged when a customer’s personal transaction or savings account is overdrawn
National Australia Bank has announced that from October 1 2009, these fees would be abolished on all NAB personal transaction and savings accounts.
Advertisement
