You taught them to tie their shoes, boil an egg and drive a car, but did you remember to teach them how to manage their money?
A survey1 which looked at young peoples' attitudes towards finance discovered that, out of the 1,400 young professionals who took part, 55% would appreciate some financial coaching.
So, here’s looking at you coach!
The top 5 money tips you can give your kids
- Respect debt
Debt can be devastating – it can limit your lifestyle, mess with home ownership options and put stress on personal relationships.
Advice: Closely track your spending and cut out things you don’t really need to avoid running up credit card debt. Better still, avoid credit cards all together and dodge an extra bill that you have to worry about every month.
We all need a safety net to cover potential unemployment and unpredictable expenses.
Advice: Set up an emergency fund so you never need to panic when you get a surprise bill or find yourself without a job. Then start locking away some retirement savings. The sooner you begin, the better off you’re likely to be. Compound interest is a marvellous thing!
- Get covered
One illness or injury can bankrupt a person – and bad things really do happen to good people.
Advice: Get insurance for life’s unexpected events. Make sure that you have enough of the right insurance for you, and then review it whenever you have a life change such as when you get a new job, buy your first home or start a family.
While major outlays are obvious, you also need to track smaller regular expenses, like lunches, coffees and petrol. These costs add up and the totals can be alarming!
Advice: Keep track of where your money’s going and make sure you’re living within your means.
- Assess your career
While it’s important to choose a career you’ll enjoy, you also need to consider how different career paths will impact financial security and lifestyle options.
Advice: Think long and hard about where and how you’ll earn an income. Think about what you want to achieve and will the career path you think you want to follow allow you to earn what you’ll need for the lifestyle you want.
1https://home.kpmg.com/content/dam/kpmg/au/pdf/2017/banking-on-the-future-edition-3.pdf Accessed 16 October 2017.
This article contains information or advice that is intended to be general in nature and which was prepared without taking into account your personal objectives, financial situation or needs. Because of that, before acting on any information or advice in this article, please consider whether it is appropriate to your personal circumstances, talk to a financial planner and consider the relevant Member guide, available at www.tasplan.com.au or by calling 1800 005 166, before making a decision about whether to acquire the products.
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