Episode 4: Grandparents know best: The 20 top money tips all kids need to learn
Starts at 60’s readers have raised families, negotiated big purchases, paid off houses, and made financial plans for retirement.
So, when we asked you for the money tips you’d teach your children or grandchildren, the answers came in thick and fast, and so many were so good that we just had to share them.
Here’s 20 of the best. Send them to a youngster you love to set them on the path to a happier financial life.
On saving, budgeting and borrowing
- Start your savings plan early and stick to it – it’s amazing how quickly it grows, so just a few dollars a week from the age of five to 21 will help fund that overseas trip.
- Purchasing an item at 20 per cent [off], even in the supermarket, is like getting 20 per cent interest in the bank. Saving the cents will save the dollar.
- Prioritise your spending – always pay your debts first (including your mortgage or rent, bills and food), and if there’s any left over, save it.
- Don’t wonder where your money went – tell it where to go. Keep a budget and know everything you’re spending.
- If you can’t afford it, don’t buy it!
- Borrow, but only what you can guarantee you’ll be able to repay. Financial reward is dependent on reasonable risk.
On housing and property
- Don’t expect to start off with everything your parents ended up with – start off with a mortgage that can be covered by one income, or maybe one full-time plus one-part-time income.
- Buy your first house in your 20s. It doesn’t matter what kind of house, just get into the market.
- Keep every house you buy and use it as an investment property when you move on.
- Pay off your mortgage as quickly as possible, then use the money to make extra payments into your super.
On investing and superannuation
- Build as much superannuation as possible because that will give you a choice of lifestyle 50 years in the future. Putting even $10-$20 extra a week into super adds up over a lifetime.
- Invest 10 per cent of your income into the top 100 shares and keep reinvesting the dividends.
- Take advice from a professional and expect to pay for it. Start doing this early.
- Don’t confine your investments to one specific location. Hedge yourself against losses by diversifying.
On life lessons
- Always look at every offer very closely and remember that most times, easy money isn’t a reality. Don’t go for a quick buck, because if it seems too good to be true, it probably is.
- Strive to be the best you can be, you only get one chance at life so make it the best!
- Try not to keep up with the Joneses. Be happy with being debt-free apart from the purchase of your home. Take a family holiday at least once a year to enjoy each other. Live and love in the moment.
- Set goals, take responsibility for your actions and don’t expect handouts from anyone, including the government.
- Don’t get on the consumerism merry-go-round – save your money and spend on enriching experiences rather than amassing endless goods.
- Read a lot (BOOKs that is!) Learn to develop and follow your own instincts.
Did anyone give you helpful money advice when you were younger? Do you have a great financial tip you’ve shared with loved ones?