Saturday, January 20, 2018

girl 3038974 1920

As parents, you want the best for your kids, and perhaps selfishly, don't relish the prospect of having your 35 year old offspring cramping your requirement by still living at home, so it is a great idea to start planning for the future now. Create a savings plan to pay for your child's education. 

According to government figures, by 2025 the average cost of a three year degree course will have reached $50,000. And that is without living expenses! If your child intends to become a high-flying business lawyer or doctor, then paying off such a high student loan should not be a problem. 

However, most kids starting out on their career paths will face the daunting prospect of having to pay off huge student loans, and that is before they can even consider starting to save for a home. 

Of course, you don't have to reach the government's project target of $50,000 but by saving regularly from the birth of your child, you will be able to build up a considerable fund so that your child can concentrate on their studies later in life, rather than worry about their course fees. 


Start early
Set up a bank account as soon as your child is born and set up a direct debit from your current account - however small an amount - to ensure a steady drip-feed of funds. Shop around for an account offering the best interest, and once a nest egg grows, make use of long-term deposit accounts for higher interest rates. 

Cash not trash
From the moment a child is born it is showered with teddies, toys and other gifts from friends and relatives. Most of these gifts end up in the trash or are given away as your child grows. Instead, encourage your family to give token gifts and to put money into your child's saving account. 

Piggy bank
Even though we live in an increasingly cashless society, we still all end up getting weighed down with the shrapnel of loose change. So why not lighten the load and pop it into your child's piggy bank instead?

Earn their keep
As your children get older, encourage them to start earning and savng their own money. Start by paying them pocket money to do small jobs around the home and then once they are old enough, get them out earning a weekend job. Get them to save a fixed percentage of their income towards an education that will ensure that they can continue to earn and support themselves in a comfortable retirement. 



read 515531 1920

There comes a time in every parent's life when they have to take a deep breath and sit down with their kids for a frank discussion about money. Whilst the biological facts of life are pretty fundamental, getting a handle on being financially responsible is far more complex, especially for hormonal teens, driving by peer pressure and constantly wanting the latest clothes and gagets. Teaching your kids about the importance of financial planning is as important as teaching them about family planning, which will hopefully lead to fewer loans from 'the bank of mum and dad'.

State of independence
There is no independence without financial independence. For any young person, it is all about being in control of their own destiny (or at least feeling as if they are in control, even if mum and dad are still their personal chef, cleaner and taxi driver). Giving your kids full control of their own budget is an important step on their path to self-sufficiency. 

Goal setting
Do you remember the fable The Ant and the Grasshopper? The grassphopper larks about all summer while the ant diligently works to store food for the winter... budgeting provides a similar lesson in the virtues of hard work and planning for the future. Learning to set goals and putting them in place in order to achieve these goals is a vital skill, one crucial to happiness in every aspect of life. 

Sense of worth
There is no better way for a person to learn about the true value of money than by spending their own money! When there is hard work and tight budgeting behind the purchase of a new pair of sneakers, they are more precious than if they magically appeared with the swip of mum or dad's credit card. Also, there will be greater appreciation of their possessions. Your kids will also get a boost to their own self-worth for being trusted to control their own finances. 

Resisting temptation
By learning to budget, a teenager will learn about setting personal barriers and resisting temptation. Yes, that app that all their friends are playing is cool, and is only $10 but that is $10 that they will not have to spend on socialising when the weekend comes along. Allocating money to specific targets is a great lesson in avoiding unnecessary waste. 

Set your kids on the path to better budgeting...

  • Lead by example: sit down and go through the family budget with your kids so that they can see where the family funda are being allocated. If they can see the true cost of running the household, it might make them more appreciative of all your hard work (sorry we can not provimse this, but you never know your luck). 

  • Make money part of everyday life: once they have gotten their head around the family budget, then let  them have a go at controlling it. Hand over the reins of the family shopping for a week, or if you don't feel like you can risk eating pizza seven nights in a row, start small by allowing your kids to plan for a family day out. Give them the money and allow them to figure out how to spend it. 

  • Make them earn their keep: earning money feels even better than spending it, so encourage your kids to get a part-time job. Once they know they have a regular income, they will be able to budget and save for big-ticket items. 

  • Your kids will know alot about the internet and computers, so get them to save and plan online. Get them to explore the different types of accounts that banks have and their benefits, so that they can make the most of their savings. 




  • scroll1.jpg
  • scroll2b.jpg
  • scroll3.jpg
  • scroll4.jpg

Contact Details

Zippy Finance 

PO Box 3078
North Turramurra
NSW 2074

T 1300 855 022 

Louisa Sanghera is a credit representative (437236) of BLSSA Pty Ltd ACN 117 651 760.  Australian Credit Licence 391237. ABN 85 168 278 975.

Network with Us

Connect with us

This email address is being protected from spambots. You need JavaScript enabled to view it. linkedin   twitter   facebook