Children and young people can gain economic independence, freedom and responsibility when they are provided with the building blocks of financial education and inclusion*. Growing up today they are part of a broader complex financial landscape and understanding the principals of financial responsibility can become core to children’s developing and long-term general wellbeing.

Financial education can empower and motivate children and adolescents to evaluate and change financial behavior. Using financial knowledge and understanding, young people are provided with the tools to master such operational skills as setting and monitoring a budget and achieving savings goals.

Assisting the young people in your life with acquiring the skills to navigate and establish their financial future will provide them with a sound financial foundation in which to build the lifestyle they choose and achieve the goals they set themselves.

Some educational strategies provided on the federal governments ‘Moneysmart’ Website include:
• Talk to children about money; begin teaching them the concept that money is not a finite resource and careful decisions need to be made about what to spend it on.
• How to earn money; let children know the money you spend you earn when you get paid. This money then gets spent on food and housing and you choose the most import things you need to spend your money on.
• Needs vs Wants; ensure children understand the difference between what you ‘need’ and what you ‘want’. Use examples that help them explore this important financial concept.
• Track Spending; adolescents when they get their first job are often tempted to spend everything the earn ~ show them how to track their spending to see where their money is going.
• Tap & pay; explain to children when you tap your card it talks to your bank and take money out of your account. Each time you tap you have less money in your bank account.
• Shopping; while shopping teach children how much things cost. Get them involved comparing deals and prices of similar items.
• Paying Bills; show young people an electricity bill and outline how many hours or days you have had to work to pay this bill. This will assist them to make the connection between work and the cost of things.

The above information is provided in greater detail on the Moneysmart website along with a full range of age-appropriate activities to help you increase the financial literacy of the young people in your life; Money Smart Website Teaching Kids about money

THE ACQUIRED CONFIDENCE THAT YOUNG PEOPLE GAIN BY ACHIEVING FINANCIAL OUTCOMES CAN LAST A LIFETIME!

* (1) https://journals.sagepub.com/doi/full/10.1177/2047173417719555