Parents Corner – Talking About Money
Our kids are called the I Generation by the media – it’s all about what
I want, when I want it. But it’s important to remember that kids have
not become that way on their own. With all the media influences
bombarding them every day and being raised in an affluent generation
compared to when our parents were growing up, kids simply believe
that every desire can be met straight away.
a guest list, plan the expenses for food and entertainment, and talk
about the costs.
If money is a tough subject for you and your kids, you’re not alone. The
best thing you can do is talk about money as family. It’s great to begin
the conversation when kids are young, but it’s never to late to start.
Here are some tips that might help:
Quick family idea: take three glass jars and label them as spending,
saving and sharing. When your child gets pocket money, she can split
it up and put some money in each jar.
Wants versus needs
As a family, talk about the way television commercials and other
advertisements try to get you to buy things you don’t always need.
This will help develop a basic understanding of needs versus wants. Talk
about marketing. Ask your kids to describe why an item is being
marketed in the way it is. Is it necessary? Will it truly make life better?
Quick family idea: divide an A4 sheet lengthwise with a thick line.
Write WE WANT on one column and WE NEED on the other. Stick it
on the fridge. Invite your kids to add to the list all week, and discuss it
one night over a fun dessert or special treat. You’ll get some crazy
items, but it’s a good way to show kids the difference between what
the family wants and needs – especially if you add your own ideas.
Making major purchases
Try to include your children when you talk about major family
purchases. Maybe you’re thinking about buying a new car or saving for
a holiday. Including your children in the discussion will help them
understand how and why you’re saving. With older children you can
talk about the concept of credit, the cost of interest, and what it really
means to “buy now and pay later”.
Quick family idea: You might want to explain what a mortgage is and
how it works. Letting kids know that most people are paying a
mortgage is often a real surprise to them.
Parties, parties everywhere
Years ago, parties used to be about a play in the back garden with
some friends followed by ice cream and cake. Today they can be
incredibly elaborate and costly. Involving children in the process makes
them understand that parties are a privilege and require special
planning and expense. Learning about the process will help them
appreciate their special event even more.
Quick family idea: planning a children’s birthday party can be a
fantastic learning experience. Together you can set a budget, draw up
Happy
T he
It’s not all about me
Money isn’t just for spending—there’s also saving for the future and
sharing with others (whether it’s for charity or buying gifts for family
and friends).
n
a
g
Dr o
Open a savings account
Saving money is very habit-forming, so the earlier your child begins to
save, the better. A good way to encourage saving and show it’s
important is to help your kids open a savings account. Older children
especially will enjoy checking their balances online and seeing how
interest can help them save.
Club
Quick family idea: you could offer to match all or half of what your
children save each month. Making online transfers into their accounts
is easy, and setting the stage for a lifelong pattern of saving may be
worth it.
Set financial goals together
If your children get pocket money, encourage them to save
up for a special purchase—for young kids it should be a small goal,
because they can’t save for months at a time.
As children get older, delayed gratification is easier to understand so
they can buy bigger ticket items after
saving longer.
Quick family idea: Make some hot chocolate and celebrate when
someone in your family reaches a savings goal. Success is a
wonderful teacher, and children will gain confidence in knowing that
they can reach goals they set.
Let kids make their own spending decisions
The best way to become a smart spender is to make lots of spending
decisions. Tell your older child you’re going to give him a certain
amount of money to buy his new soccer gear—if he finds good deals;
he gets to keep the difference. There’s nothing like cold, hard cash as
an incentive to be a comparative shopper.
Quick family idea: The next time you put petrol in the car and the kids
ask for a treat, tell them they can either choose the treat or you’ll
double the money and pop it in their savings account. Either way,
they’re learning that spending or saving is their choice, and they’re
responsible for the outcome.
For further information
ask at any branch
Issue 6, 2010
13 33 30, 24 hours a day, seven days.
Welcome to the
b
lu
C
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r
Happy D ago Newsletter
you can
This issue has lots of coo l idea s abou t wha t
way s to
do with your mon ey! Inside we talk abou t easy
do as a
save , setti ng goa ls, and som e thing s you can
ey.
family to mak e the mos t of your mon
gam es
For prescho oler s, we’ve got som e grea t new
ey. And
– all abou t coun ting, sort ing and grou ping mon
way s to
t
abou
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advi
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for olde r kids , there’s som e goo
got a
ve
you’
If
r.
help you reac h your savi ngs goa ls faste
you
how
t
talen t or a grea t busi ness idea, we talk abou
can turn your idea into extra mon ey.
star ting
Pare nts will also find som e hand y tips abou t
as
mon ey conversa tions with their kids , as well
y day.
prac tica l way s to teac h mon ey lessons ever
one
Rem emb er, mon ey is not ever ythin g – it’s just
can get
you
if
So
more tool we use to have a happ y life.
and
goo d at savi ng, setti ng goa ls, mak ing mon ey
way to
your
on
well
e
you’r
ly,
spen ding your mon ey wise
bein g a succ ess.
Are you a marshmallow eater?
Stanford Universi ty in
Did you know that a cool psychologist from
nt at his dau ghter’s
America, Dr Walter Mischel, did an experime
one
prescho ol with mar shmallows? He offered kids
until he came
mar shmallow, and told them if they could wait
allow he’d give
back into the room without eating the mar shm
them another one.
the kids grew up,
What did he find? Over the next 30 year s as
longer without
Dr Mischel found that the ones who could wait
essful. They had
eating the mar shmallow were far more succ
more money.
better educations, better jobs, and made a lot
be a really good
Lea rning to wait for the thing s you want can
set your goa ls
idea! Inside we show you some eas y ways to
and stay patient…so let’s get star ted!
The Happy Dragon Club Newsletter • Issue 6, 2010
Issued by St.George Bank – A Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714. ST07773 06/10
193562_ST07773_0610.indd 1-2
15/06/10 4:15 PM
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Can you help
Happy find his way
to St.George?
For some extra fun,
you can
colour in Happy!
Ea s y wa ys
to sa ve
Set your target:
So you know what you want to buy, but do you know how much it will cost and how much you’ll
need to save each week to get it? To work out the total cost, you may want to go online with
Mum or Dad’s permission and do some comparison-shopping. You can also check out the
shopping catalogues to see who’s offering the best deal.
Get real:
You probably want the item right away, but saving takes some time. Be realistic about when you
want the item and how much money you can save each week. If you have pocket money, you
can decide how much of it you’ll spend and how much you’ll save.
Do your Maths:
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Fu n
P re sc h o o le rs !
What’s in the bag?
Goal: To identify various coins by their weight and
shape and to make kids curious about money
What do
Brown bag, various coins
you need?:
What to do:
As e a rly a s a ge
two, prescho ole
rs c an be
re ady to le a rn
about the va lue
of money.
Here a re two fu
n games that w
ill help
introduc e the c
onc ep t of va lue
– and help
with e a rly Math
s le a rning a s w
ell!
l Hot tip for p
a rents: Using w
ords like
simila r, dif feren
t, and grou p
will help your c
hild unders tand
important Math
s conc ep ts.
Place a handful of coins in the bag. Ask your child to reach in and choose a coin.
Encourage your child to feel the coin and guess what the coin might be without pulling it out
of the bag. When your child pulls each coin out, stack the coins into groups that are similar
or different. You can make groups that equal $1, or even talk about the images on the coins.
Be guided by your child’s curiosity!
What your Each coin looks and feels different. The pictures on the coins are there for a reason. Similar coins
preschooler can be grouped together to make an amount, but you can also use different coins to make the
will learn: same amount.
Coin Stacks
preschooler. Hold up a 50-cent coin. Ask your child
your
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cents and 5 cents, then explain that you want to mak
l When you’ve repe ated for 50 cents, 20 cents, 10
stacks in grou ps that equa l $1.
coins, 10-c ent coins and 5-cent coins. This is a
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gives little hands lots of fine motor skill practise!
great chance to practise counting together, and also
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rent ways you can make $1. Some will simply point to
lThink and learn: ask your child to tell you some diffe
well.
ren might suggest combining different coins as
stack of coins you’ve made together – but some child
You’ve found something you really want. Now all you’ve got to do is find a way
to get it! Saving money for something special is just like training for a sport or
learning to play music – you need a goal and a plan to get there. Then it’s all
about taking small steps to make it happen.
Cost of the item ÷ weeks you need to save = weekly savings target
$195 ÷ 20 weeks = $9.75 a week
e.g.
Make the money yo
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For solution to puzzle go to stgeorge.com.au/happydragonclub
The Happy Dragon Club Newsletter • Issue 6, 2010
193562_ST07773_0610.indd 3-4
15/06/10 4:15 PM