Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

- SUSAN HELY

My kids switch off when I bring up topics such as superannuation, insurance, spending and saving. I have to choose a time when they are receptive to a dose of parental wisdom, otherwise they claim to be too busy to chat. They are working full-time: exhausted and snowed under. But I don’t want my kids making the same mistakes I made, some of which have been shockers, particularly when I was young and didn’t take much notice of what my parents told me. So here are eight important financial conversations to have with your children:

1 Be aware of your consumption

I spent a lot of money on clothes and shoes in my early adult years and I dined out at the drop of a hat. I was in a pattern of unhealthy consumption, using shopping as a compensation for life’s stresses, which kept me juggling credit card debt. Credit cards and buy now, pay later programs are not a good idea for young people. Being aware of why they are spending money and their black-hole shopping patterns can help curb their spending. Spending apps that categorise where their money is going can help.

2 Don’t spend too much on cars

I bought a cheap, old car from an Unknown private seller and had to replace the engine a couple of months later. On the rebound I bought an unattractive, discounted new car. It is easy to get into debt paying for a car and its running costs. I often refer to annual data on the costs of running a vehicle because it is sobering. For instance, the cost of running a medium-size car in Australia is $431 per week, according to Compare the Market.