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With Christmas fast approaching,educating your little ones about how to draft up a strong budget is probably well below “cook delicious ham” and “buy fancy bon-bons” on your to-do list. Plus,it can be a touchy time of year when it comes to money – do youreally want them to know how much Santa spent on their presents?
However,I would contend that Christmas and the holiday period in general is the perfect time to start having some budgeting-related conversations with your children. Not only do you have the time (),but there are ample opportunities that can be used as a way in to talk about bigger money concepts.
The festive season provides ample opportunities to teach your kids about money.Aresna Villanueva
Shopping for Christmas lunch? Talk about unit pricing. Helping them open a streetside lemonade stand? Break out the profit and loss spreadsheets. Watching critically acclaimed 2007 jukebox musical comedyAlvin and the Chipmunks? Time to discuss the benefits of government bonds.
What’s the problem?
Financial literacy among younger Australians has been historically poor and is – unfortunately – getting poorer. Results from Household,Income and Labour Dynamics in Australia survey of about 17,000 people revealed those aged 15 to 24 had the biggest decline in financial literacy of all age groups. Improving this isn’t just about helping your kids save a few bucks – a from last year found better financial literacy leads to greater life satisfaction.
What you can do about it
If you’re thinking about teaching your kids about the wonders of a budget,here are some places to start:
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.