Growing up in an increasingly cashless society where payment options like debit and credit are considered the norm, the youth of today have had an entirely different introduction to managing money than that of their mums and dads – and parents today are finding it harder and harder to teach their children responsible spending habits.
In the last few decades a lot has changed, and almost everywhere you go, cashless payment is preferred. With new options like PayPass and Apple Pay popping up all the time, and predictions of a completely cashless society on the horizon, cash payments don’t appear to be making a comeback anytime soon.
Many households today are choosing not to give their children pocket money, instead preferring to invest it in savings for their kids’ futures. Of those that do give their children an allowance, many choose to transfer it electronically into their bank accounts rather than hand over cash.
In Melbourne, you can’t even jump on a bus without first topping up your myki card, which, you guessed it, is easiest done online.
With that in mind, it’s no surprise that parents Simon and Kathy Jones were a bit stumped when it came to teaching their seventeen-year-old son how to manage money responsibly.
Simon and Kathy have been clients of Rising Tide Financial Services for more than eight years, after Simon met Rising Tide Founder and Managing Director Chris Browne while supporting his mother to attend a financial planning meeting.
Simon instantly connected with Chris and recognized the importance of having a financial planner who he and his family could work with and trust.
“I instantly felt really comfortable with Chris – we had things in common and I just felt I could talk to him. I went home and spoke to my wife Kathy about it, and we ended up going to see them ourselves and haven’t looked back,” says Simon.
“Over the years Rising Tide have supported me through a lot. They helped me to manage my redundancy, to look at income protection, superannuation and future planning, and when my mother passed away they were there to help me with all legalities and obligations around the inheritance.”
With such a strong relationship, it was only natural that Simon and Kathy turned to Rising Tide for support when it came to educating their children about money. After expressing their concerns, the team at Rising Tide arranged for a series of sessions to support the Jones’ family to teach their kids what to do with money and how to make good decisions.
“We found our sessions with Rising Tide really valuable – it’s really helped put it all into perspective for us. It’s all about teaching responsibility, and helping our kids to understand that you work hard for the money you earn so it’s important not to waste it,” says Simon.
“Our sessions with Rising Tide taught us that it’s all about the conversations that you’re having. Our son has recently got his first part-time job, and now has access to an income of his own, but it’s important for him to learn the value of what he’s earning, and for us to encourage him to spend it wisely rather than squandering it away,” says Kathy.
“We’ll have conversations where we remind him that he’s had to work 3 hours to earn $50, and for example one Xbox game might cost $100. We try to help him consider what the benefits are, whether or not he really needs the game, and to just think about the tangible money in his pocket rather than an abstract number,” Kathy explains.
While originally the sessions were for Simon and Kathy, their son chose to attend a few as well, and receiving a few first hand tips from some of Melbourne’s top financial planners seems to have left a lasting impression.
“Our daughter is 11, and she’s starting to become more conscious of money as well. We’re going to do the same process with her – it’s so important to make the time to sit down with your kids and have these conversations with them. It really gives them the best foot forward in life,” says Simon.
If you’re looking for advice on how you and your family can manage your money wisely, give us a call on 03 9600 2124 to set up an appointment with one of our friendly financial planners.