Financial Education For Children

Starting savings

It's simple, really. Just put you…look at it like a diet plan and it will work miracles. First arm yourself with knowledge of your assets, liabilities and investments. Next plan a budget and stick to it, save well, invest wisely and control your debts.

They will follow, only if you lead by example. Young minds are impressionable so its upto parents to use them to put in the right things. In the process, your saving habits may also improve! Count your pennies and they will be dollar wise!

Talking money with children:

Sit your child down for a talk. Strange as it may seem, there are plenty of parents who find it a bit too difficult to talk to their children about money matters.

While most children are informed about choices available, Citigroup and YWCA conducted a research which found savings are not a top priority with children. In fact, the study revealed that less than 40 % of children who receive pocket money have earned it and less than one in four (223,000) children save their entire allowance. If that's brought your antenna up, just think of the number of times your child has influenced your choice of holiday destination or for that matter your grocery selection!

Recognizing that most young Australians have not been exposed to financial education at school, YWCA NSW and Citigroup Australia joined forces with the NSW Department of Education and Training to develop the Finance First education initiative. It teaches the basics of money management and consists of two programs: MakingCents, a program for primary school children and EvenStart, a program for adults wanting to get a handle on their household finances.
The study also points out that parents believe that they are the major influence on their child's understanding of money, followed by teachers, grandparents, television and their child's peers.

As parents:

If you are thinking of saving money for your children, you have to decide what you want to save it for. Whether education, foreign trips, a wedding or just to give them a base to add to when they get to work. All you need to do is get into the office of a good tax consultant who will guide you through various governmental bonds, equities and other saving options including shrewd investments in shares etc. You may even get a tax waiver.