Simple Personal Finance tips and Tricks to Teach Your Children

Money fascinates kids, because they like what it can buy for them.

A little bit of work now can save a lot of future stress.

Leverage these steps to teach them how to take advantage of moneys power.

1. Pay yourself first: Your first expense each month is future you. Invest a set percentage of your income straight away.

Lesson: Encourage your child to take 20% from their allowance/part-time job to invest. Then teach them about compounding. Let them watch as their money makes money.

2. Stay on top of debt: Calculate your debt, & pay off consumer debt ASAP. Shop around for better deals on home loans or business loans.

Lesson: Buy something for your child on credit. Add a small amount of interest each week. Teach them to avoid consumer debt at all costs.

3. Start an emergency fund: Make contributions from every pay until you have 3-6 months of expenses saved.

Lesson: Give your child examples of situations where they'll need an emergency fund.

E.g. - Medical emergency, home or car repair.

4. Track your expenses: Look at fixed & variable costs. Identify areas to cut back, and areas you want to prioritise spending in.

Lesson: Get your child to list their expenses for the month. Discuss their feelings about their purchases, highlight the importance of mindful spending.

5. Always keep learning: Read personal finance books, and trusted news sources to keep improving your knowledge. It's never too late to learn.