Talking Kids and Money

Financial Tips for Your Older Kids

Danica Le Fleur is the Head of Operations at 9Miles Project, a non-profit organisation that DirectAxis supports with food, equipment, and volunteers to empower at-risk youths through surfing, education, and mentorship. As a young person starting her career, Danica has learnt hard lessons about ‘adulting’ and finances.

Here Danica shares her insights on what she wishes she had known about managing her finances–to help you financially educate your oldest kids, as young adults, and your kids step out into the world with confidence: 

 

Saving is the Key to Success

When you, or your older children, start to plan for your financial futures, the first rule to remember is to save, save, save. The catch? The novelty of getting a regular salary may not have worn off yet, and while it’s easy to start with good intentions, temptation tends to sway even the most money-savvy minds.

“I wish someone had taught me not to spend randomly, but set a budget, so I could manage my money better and have something left over to save at the end of every month,” says Danica.

Wants, Needs, and Avoiding Debt

The best financial advice you can give your young adults is to be aware of and avoid bad debt.

“I was getting into credit card debt, taking out loans, and buying things I didn’t need–and ended up paying off long after,” says Danica. “Debt lasts much longer than the gratification of your purchase. And since I’ve discovered how important it is to check your healthy credit rating, I’m more mindful of how I manage my money. ”

A good rule of thumb is to teach children to keep strict boundaries between wants and needs. The younger we learn this, the better off our finances will be. 

Learn to be Patient

“Encourage your kids to steer clear of tempting ‘solutions’ like lay-bye schemes,” says Danica. When it comes to paying off bigger assets, like a car or house, over a longer period, it’s important to try to lay down as much as possible from the get-go: a shorter repayment period means less interest. This applies to everyone and anyone: old or young.

A Little Help Goes a Long Way

A support system is a big stepping-stone to helping your children reach their goals. And if you’re a parent reading this, you’re already one step closer to pointing your children in the right direction. Keep the conversation open, no matter how far they are in their lives and careers. They’ll be able to pass the lessons and advice down to their children.

“Money management skills don’t have to come from home, but speaking from my own experience, I believe it’s the best place to start,” says Danica.

DirectAxis is here to help you build a better tomorrow –whether you need tips to teach your kids about money, take out a personal loan to fund a child’s dream, step up in your career, or ensure your loved ones are protected.

Get in touch with us today, to see how we can help. 

 
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