1 June 2024
Ten-year-old twins, Kobe and Elkie, have big money dreams (including a dog and a new house). Their parents, Megan and Christian want to teach their kids how to boost their financial literacy and set them up for success. “I just want them to be secure,” says Megan. Christian agrees: “It’s a big scary world; it would make us feel better.”
See how Jess Irvine suggests how parents Megan and Christian could teach their kids about money on The Brighter Side.
Megan and Christian are trying their best to share sound money advice with their twins. Here’s what they’re doing:
Megan says she’s more financially conservative thanks to her bank-manager father imparting lessons at an early age. Christian, on the other hand, tends to be more frivolous with spending. “I’m the handbrake,” Megan says with a laugh. “We even each other out.” But the couple know parents influence their kids’ attitudes towards money, so their focus is not passing on any bad habits.
Christian works away – two weeks on and one week off – and his schedule sets a good example for the kids about how reward comes from sacrifice. “The kids will say, ‘Daddy, why can’t you just stay home?’ and I tell them, ‘I need to work so we can afford things.’”
Megan and Christian used to give the twins pocket money in cash but noticed they would spend it immediately at the canteen or on stickers. “It was easy come, easy go,” says Christian. Now pocket money goes straight into a savings account, which the kids love checking to ensure it’s growing.
Not sure how to approach talking to your kids about how to grow and protect their money? Kit can help! Here’s a few questions to get you started.
1. What is the name of the place where coins are made?
a) The oregano
b) The mint
c) The parsley
d) The thyme
2. One clue that an email is a scam might be...
a) It doesn’t use my name
b) It’s well written
c) It uses my name
d) It doesn’t have links
3. A hot chocolate might cost more at a café because…
a) The café owner is greedy
b) They pay for extra things, like staff and rent
c) Their milk is fancier
d) Their hot chocolate is hotter
4. Why is waiting a night to buy something you haven’t saved for a good idea?
a) You might be tired
b) You could ask an adult
c) It will probably go on sale
d) You’ll have time to think
5. Kit gets an email from the post office. It has lots of spelling mistakes and strange links. What should they do?
a) It sounds like a scam. Delete it
b) It could be important. Click the link
c) Reply to ask if the link is correct
d) Don’t lose the package. Click the link
6. What were the names of Australia’s first official coins?
a) The dump and the holey
b) The rough and the smooth
c) The penny and the pound
d) The cent and the dollar
7. Kit has been saving their pocket money for three weeks to buy a new board game. At the shops they see a cool robot they’ve never seen before and they’d really like to buy it. What should they do?
a) Buy it now – why wait?
b) Sleep on it – give it at least one night
c) Pester power – ask an adult for it
d) Treat yourself – you deserve it
8. Kit is running a lemonade stand. The price of lemons goes up. What does that mean for Kit?
a) Nothing, they shouldn’t worry
b) They should stop selling lemonade
c) They should charge less for lemonade
d) It costs more to make the lemonade
9. What is income?
a) Money you earn
b) Money you put in the bank
c) A type of tax
d) Money you pay to enter a country
10. Your friend asks you how imagining yourself achieving your saving goal can help you stick to it. What do you say?
a) You experience how good it will feel
b) It reminds you of the steps you need to take to achieve your goal
c) It gives you time to think
d) It’s fun to do
Kit Quiz answers: 1. b) 2. a) 3. b) 4. d) 5. a) 6. a) 7. b) 8. d) 9. a) 10. a)
“If you bring an attitude of fear or anxiety about money, kids will replicate it,” explains Jess. Let them know “money is how we get the things we want – it’s exciting to earn money, it’s exciting to spend it and it’s exciting to invest it and watch it grow.
“I want kids to hear you say, ‘Spend less than you earn, save and invest the rest,’” says Jess, adding: “[Ensure] they know that money saved, is what you spend later on, whether it’s on a skateboard or their first car.”
Try to bite your tongue if they blow it all on lollies or games. “Kids need to have money that is theirs so they can feel the sting of running out of money while they’re in a safe environment,” says Jess. Instead of reprimanding them, ask if they think their purchase was worth it.
As a parent, Jess uses Kit, built by CommBank, the kids’ pocket money app and prepaid card. “It lets you set an allowance to be paid into their account with a linked card they can use to spend their money, and they can set savings goals,” she says. “You can also set extra jobs, such as mowing the lawn, to give them the opportunity to earn extra money.” For peace of mind, you can access it anytime and customise controls.
Jess Irvine, CommBank’s personal finance expert, and a respected journalist with nearly two decades of financial reporting experience. Her personal passion is helping people with their money.
Kit is issued by Hay Limited(ABN 34 629 037 403 AFSL 515459). PDS and TMD are available at the CommBank website. Please consider the PDS before making a decision about Kit.
This article provides general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as personal financial product advice. The views expressed by contributors are their own and don’t necessarily reflect the views of CBA. As the information has been provided without considering your objectives, financial situation or needs, you should, before acting on this information, consider the relevant Product Disclosure Statement and Terms and Conditions, and whether the product is appropriate to your circumstances. You should also consider whether seeking independent professional legal, tax and financial advice is necessary. Every effort has been taken to ensure the information was correct as at the time of printing but it may be subject to change. No part of the editorial contents may be reproduced or copied in any form without the prior permission and acknowledgement of CBA.
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