If your adult kids are still living at home with you, it’s an excellent opportunity to help them learn important money management skills needed for when they move out. Doing this will help you set them up for success in both the short and long term.
Budgeting is the foundation
Equipping your kids with budgeting fundamentals will give them a better chance of financial success, now and in the future. It will also help them understand what it takes to effectively manage their money on a day-to-day basis. To help them get started, sit down together and try some of the budgeting tools available online.
Developing good saving habits
Educating them on the importance of saving regularly goes hand in hand with good budgeting. You can start with a simple rule of saving a set percentage of everything they earn and, to help them out, offer to match their savings dollar for dollar in support of something that will help them in the long term, such as a rental bond. This gives a real incentive to build saving habits that will benefit them throughout life. Teaching them about using credit responsibly is also essential, as it’s easy to quickly rack up personal debts.
Creating wealth slowly
One of the key lessons you can pass on is the value and importance of creating wealth slowly. It’s important for them to learn that achieving financial independence later in life is the result of sound investment practices.
These include putting regular savings away and using smart ways that help accelerate wealth, such as superannuation tax incentives. Getting sound investment advice from a qualified financial adviser will also complement these tips and help build lifelong strategies for creating wealth.
Take the next step
To discuss your financial situation, make an appointment with a Bridges financial planner. They can develop a plan specifically for you to help achieve your goals. We have referred Great Southern BAnk members to Bridges to provide financial advice since 2014. They have been helping Australians with financial advice for 30 years. To make an appointment, call 1800 645 303. The initial consultation is complimentary and obligation free.
Bridges Financial Services Pty Ltd (Bridges). ABN 60 003 474 977. ASX Participant. AFSL 240837.
This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner or a registered tax agent. Examples are illustrative only and are subject to the assumptions and qualifications disclosed. Part of the IOOF group Additional disclaimer for referral partners: In referring customers to Bridges, Great Southern BAnk does not accept responsibility for any acts, omissions or advice of Bridges and its authorised representatives.