- TV & Video
- Renovation & Decorating
- How To
- Be Healthy
- home beautiful
May 9, 2012, 10:26 am Scott Page, betterhomesgardens
Three money saving steps to help your kid save for the future.
You’ll often hear parents talk worryingly about social media sites. Well, now there’s another reason to worry. New banking technology lets us pay for things on Facebook and email. This new era of ‘digital money’ will have a similar effect on today’s kids as it does on adults in casinos who change their cash to chips: a loss of reality, and a chance of spending more. Here are three top tips for good money management when it comes to your kids.
1. Bub isn’t ready for budgets and banks but you can start saving for your kids’ education on their behalf by opening an education bond. The bond issuer pays the 30 per cent tax on the earnings (so it doesn’t need to be put on your tax return). After 10 years, they’re free of capital gains tax.
2. Avoid giving unearned pocket money, which tells your kids you’re an ambulatory ATM. That’s not how real life works! Instead of set pocket money, pay your primary school kids a few bucks to do household chores and get them to put their ‘pay’ into three jam jars or piggy banks labelled Spending, Saving and Giving. Spending lets them enjoy the fruits of their dish-drying and undie-folding, saving teaches good habits, and giving puts their money in its proper perspective. Once your kids hit their teens, encourage them to open three high-interest savings accounts instead, and get a part-time job. Eight bucks an hour for slicing meat at the deli is a great way to teach your teens the real value of money.
3. With housing and rental prices high compared to an average Gen Y’s income, it’s become common for kids to mooch at home well past their teens. Even if they fix your computer, make sure you hit them for board and bills. This prepares them for the real cost of living so they don’t get a shock when they do leave the nest.Like' us on Facebook
Better Homes is more delicious than ever. Try...
The team visits the world's biggest flower show...