Father’s Day often gets dads thinking about whether they’ve been the best father they can be to their kids. Have they passed on those important worldly lessons, so their children will lead a happy and successful life?
While many dads teach their kids practical things such as how to ride a bike or change a tyre, they often forget to share their hard-earned lessons about money.
Just think how much more financially secure we’d all be if we could turn back the clock and start over again, knowing what we do now.
By teaching their children some simple tips about money, dads can help set their kids on track for a prosperous future.
Five money secrets dads should share with their children:
· The magic of money – Talk to your kids about your own financial milestones such as the first big thing you saved up for. Let them know how rewarding it felt to empty your money box on the counter and buy your first skateboard or album. Also, discuss things you wish you had done. Don’t be afraid to talk about your mistakes and what you learned from them.
· Dodge the debt – Mobile phones are a core part of teenagers’ social lives, but they can also be one of the biggest debt traps. Credit card debt and car loans are also common pitfalls for young people, so it’s important to flag the potential dangers with older children. Make sure they understand they need to take responsibility for their own finances.
· Every penny counts – It’s a good idea to encourage kids to develop good financial habits early in life. Whether they’re still receiving pocket money or have a part-time job, encourage them to set aside money for spending, saving and investing. Also, teach your children how to be savvy spenders by showing them how to shop around for the best price.
· The bank of mum and dad – Let your kids know everyone has to contribute to the household, even if it’s by helping with the chores. While parents often want to give their children a better life than they had, it’s easy to overdo it. You can teach kids the value of money by encouraging them to save for some things themselves. After they’ve finished studying, you can also ask them to pay board if they continue living at home as young adults.
· Save for the future – When older children first begin their working life, it’s tempting for them to blow their new found cash on a flash set of wheels, designer clothes or going out. Of course this is part of being young, but also encourage them to set some long-term financial goals and discuss how they might achieve them. Saving for a car or deposit for a first home can take years, so the earlier they start the better.
Oak Financial Partners is an Authorised Representative of AMP Financial Planning Pty Ltd, ABN 89 051 208 327, AFS Licence No. 232706.
Any advice given is general only and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult an accountant, tax professional or financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.