1. Encourage Goal Setting

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Ask your children to identify their short-term and long-term goals. For example, they may want to save for a skateboard in the short term, and a longer term goal might be saving for a car. Discuss how much each item costs, when they want to purchase them and how much they need to save each week to achieve their goals.

2. Start Early

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Start teaching kids about money as early as possible. From the age of four, they can be introduced to the simple concepts of saving and spending. When they’re six years-old, start talking to them about how people need to earn money to pays for things like food, clothes and toys.

3. Teach Them Smart Spending Habits

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Show your children how to shop around for the best price, especially on big ticket items, such as a bicycle or laptop. Help them check out catalogues, look for sales and do online research to ensure they’re getting the best deal. Encourage them to ask for a student discount and hunt for seconds or 2-for-1 deals.

4. Establish A Good Money Routine

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Teach your kids how to set some of their money aside each week for saving, spending, donating and investing, so they develop good habits early on. Take them to the bank regularly to deposit their savings. Show them how to log on to their bank account online, so they can see their money grow.

5. Let Them Pay

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Don’t buy your kids everything they ask for. Encourage them to save and pay for what they want with their own pocket money. This will help them learn how to manage their own bills when they leave home.

Text: Bauer/The Australian Women’s Weekly