Introduction

For many of us, our first experience of banking and savings was the school Savings Account Program.

But in 2019 the Australian Securities and Investments Commission (ASIC) raised concerns that these accounts had little lasting impact on children’s savings behaviour.

All parents want their children to be better-off than they were – more secure and financially independent, but the big question remains: where do you start?

Introduction

When relationships break down, child maintenance payments are often made from post-tax money. If this is a position you are facing, perhaps you might be interested in learning about a Child Maintenance Trust.

According to the National Centre for Social and Economic Modelling (NATSEM), the cost of raising two children is estimated at $........,000. For those in the 45% tax bracket, every $...,000 in child support costs nearly $...,000.Just as alarmingly, children receiving payments of ‘unearned’ income, such as support payments can attract tax rates as high as 66%.

Introduction

How much does it cost to raise a child? Obviously the answer is highly dependent on individual circumstances. However, as a guide, a 2013 national study  found that a typical middle income family would spend about $.....,000 on raising two children from birth to age 24. At that time child-raising costs were increasing at around 9% per annum, so it’s a reasonable estimate that these days the cost of getting two kids to the point where they’re ready to leave home (that’s not to say that they will) is closer to $..........! And that’s a middle of the road figure.

Introduction

Financial literacy is a fundamental life tool. Teaching our kids about financial management from a young age should be a high priority as this is now recognised as an important stepping stone to financial success.

Fortunately, secondary school teachers now have access to free teaching resources through not-for-profit organisations such as the Financial Basics Foundation. These resources can help students become well-equipped to make informed financial decisions and fight spending temptations; better enabling them to set and reach their financial goals.

What is the Financial Basics Foundation?

Introduction

Wireless-based technology allows children from alarmingly young ages to do everything online, usually via a mobile device. Having instant access to the world is an expectation for many youngsters nowadays. What child doesn’t know what an “app” is?

Introduction

Introduction

Introduction

Attitudes and activities are changing much earlier than in previous generations, so, for the sake of their future well-being, it’s important to introduce your children to the intricacies of money management from an early age.

Introduction

Introduction

Introduction

The bottom line is that education is getting more expensive and competition for entry to the best courses will only get stiffer. Rather than having your children start their working life with a debt hanging over their heads, starting a savings plan when they are young is the answer. The key is to put a sound plan in place as early as possible and stick to it.