Money lessons you should be teaching your adult children 7



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Do you ever look at your kids and others in the X and Y, and even Z generation and wonder what skills we can or could be teaching them about money that only some seem to know?

It might seem logical and simple to you, the generation who lived through the tougher years of the 80s by dividing money into envelopes into which you would put a few dollars every week to save up for an electricity bill each quarter, a Christmas gift fund each year, or birthday gift pool, but to so many people, savings, if they make any, are a very short term activity.

Here’s 6 things you could encourage in younger generations that are simple, smart and logical. Have you taught your children them or other ideas?


O1) “Money In” minus “Money Out” equals “Profit”.

This might seem like the simplest lesson, and yet in this day of ready-debt and credit cards it sometimes seems like this simple lesson that was tauch to most over 60s in their youth and through years of recessions might have been lost on today’s younger people.


02)   “Profit” minus “Savings” is available spending money.

If you are not making a profit to begin with, that is, you are spending more than you are making in income, you simply should not be considering luxury activities. Or at least this is what I was taught in my youth.


03) Set Savings Goals.

When we think about savings, we know we have to set savings goals like an Olympian does, to be able to run through the finish line of our goals in the least time, with the most pride possible.

When setting savings goals it is wise to teach the younger people in your life to consider the timeframe that they are going to need to take to reach their savings target, and to break the target down into very small, logical and achievable amounts. There are websites available like the ASIC Dollarsmart website that can help people calculate their required savings to encourage goal-setting.


04) To reconsider the need for too much “stuff”.

We’re living in a world which can sometimes look just too blatantly commercial, and for those of us who have gone without, we can find ourselves perplexed at why the younger generations want to spend their money on so much inconsequential “stuff”. A good measure to teach the younger ones in your life is to ask them to ask themselves “Do I need it now?” and “Will it impact my savings goals?” before they step out for a “shopping fix”.


05) Find someone whose money advice they respect.

Whether it is a close family member or a financial adviser, finding a reliable person that they respect to seek advice and input from about money is always a good idea. Look for someone who is good to learn from and will also be a good sounding board.


06) Set checkpoints with themselves.

There is nothing like a meeting with yourself to call you to action and make you take a hold of your financial circumstances. Quarterly or “90 day” checkpoints are a good habit to get into, to allow you to see if you are getting off track.


What money lessons have you taught your children, or do you wish you had taught them?

Tony Derwin from Fin Synergy assisted with this piece.

Rebecca Wilson

Rebecca Wilson is the founder and publisher of Starts at Sixty. The daughter of two baby boomers, she has built the online community for over 60s by listening carefully to the issues and seeking out answers, insights and information for over 60s throughout Australia. Rebecca is an experienced marketer, a trained journalist and has a degree in politics. A mother of 3, she passionately facilitates and leads our over 60s community, bringing the community opinions, needs and interests to the fore and making Starts at Sixty a fun place to be.

  1. My days of teaching my adult children are well gone, taught them many yrs ago the value of money, they are doing very well, they don’t need me to teach them now, they are adults.

  2. My Mother many years ago said to me you have to save for the future, but you also have to live for today, because tomorrow may never come. I took that advise, gone on many trips overseas while I was still working & now at 72 yrs of age doing simple things in life healthy & happy.

  3. From their wages a third for their board( to me) third into savings and the other third was theirs.

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