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You may already be putting money aside each week to help pay for your kids’ education, first car or wedding, or perhaps all three. So why do they need their own savings account? Here are 5 things to consider.
It’s a reason to talk about money
Money is a topic many of us avoid altogether. You may find it stressful to talk about, perhaps you think it’s impolite to discuss it, or maybe it simply doesn’t occur to you to chat to your kids about money. There are plenty of reasons people choose not to talk about money and with today’s cashless approach to handling day-to-day finances there often isn’t an opportunity. Opening a savings account for your kids can also open a discussion about money: how to get it, what to do with it and why it’s important to save it.
If it’s mine, I’m involved
Benjamin Franklin said it best: ‘Tell me and I forget. Teach me and I remember. Involve me and I learn’. The difference between you setting aside some money each week for your kids and giving them their own savings account to manage is significant. Everything changes when they are the ones handing over the money.
It’s an opportunity to establish lifelong habits
A quick look at the nation’s credit card debt will tell you that there are some Australian adults who don’t have a good grip on their finances. By encouraging our kids to get into the habit of saving money regularly we are hopefully teaching them an important skill they will have for life. Developing a habit of setting aside a bit of your allowance each week and understanding that you sometimes have to wait and save up to buy something are two fundamental money management skills.
Get your kids used to having money
We are creatures of habit and we often strive whether consciously or subconsciously to create a situation for ourselves that is our version of normal. Consider making having savings normal for your kids.
They’ll thank you one day
Just like learning to clean your teeth and use your manners, saving money is a valuable life skill. Give your kids an opportunity to start out with the right approach to money, and they will thank you for it later.
