Share Your Wealth

How to give your kids a financial leg-up

- Darren Snyder

A GIFT VERSUS A LOAN

AN EARLY INHERITANCE

TOP UP THEIR SUPER

HELP WITH THE MORTGAGE

SET UP A FAMILY TRUST

BENEFIT OF AN INVESTMENT BOND

Over the next two decades, an estimated $3.5 trillion will be transferred between generations in Australia, according to McCrindle research. The figure, first published in 2016, has led many commentators to question how up-and-coming generations will handle this massive wealth opportunity.

The pool of money will unquestionably be a welcome addition, helping people experience greater financial independence, whether it is now or in their retirement. What must also be considered though, is the kind of lifestyle we want to pass on.

In our feature Baby steps for new parents (page 44) we point out that, at a minimum, it takes $300,000 for two parents to raise two children up to the age of 17. Now in our cover story, we look at what financial habits we should create for our kids, and warn that mum and dad will need some cash in reserve when they become the bank of choice for their children – the fifth-largest lender in the country and growing, according to comparison website Mozo.