Helping you succeed in life's financial journey

Is your teenager financially set up for the future?

26 April 2019

Written by:

Bonnie Timu - Authorised Financial Adviser - Financial Planning & Commercial Insurance


Financial plans teenagers Napier Hastings Hawke's Bay

Do you have a teenager in the family? Now could be a good opportunity to set them on the path to financial wellbeing – before they leave the nest.

Here are 7 key steps you can take:

1. Encourage them to join KiwiSaver

Starting your children in KiwiSaver early means they won’t miss the deduction from their pay when they get it. Plus, they will have a good early start in building retirement plans and potentially a nest egg for home ownership.

Rather than just going into a default fund, consider getting KiwiSaver advice from an experienced adviser. Get in touch with our friendly Team at Cole Murray: we can help you and your children find the right KiwiSaver provider and fund to maximise compound returns. In most cases we are paid by the provider, in which case our KiwiSaver service comes at no cost to you. 

 Book a KiwiSaver session

2. Discuss their Insurance options

Thinking about the unexpected isn’t always easy and, especially if your children are young, the ‘worst case scenarios’ may not be on their radar yet. But there are plenty of reasons to consider Insurance at a young age.

Taking out cover at a younger age usually costs very little. Also, the likely lack of pre-existing medical conditions means they may be able to obtain cover without any exclusions – and keep it that way for the rest of their life.

Once again, we can help: our Insurance advisers will be happy to talk you through your options.

 Contact a Risk Adviser

3. Encourage a saving mentality

Encouraging a saving mentality and a healthy approach to debt is important. Talk to your teenage children about credit, and how they can avoid falling into the ‘debt trap’.

Plus, discuss the basics of budgeting and saving for consumer goods: it’s a very important lesson to learn, and one that could help your kids become more financially-savvy as they grow older.


4. Share your financial story

What financial decisions would you have made differently, if you knew then what you know now? By giving your children real-life examples, you can help them understand the different consequences of their money behaviours.

Talking openly about money shows that it's not a taboo subject and that it's OK to make mistakes and ask for help - enabling healthy money choices.


5. Encourage an ‘eyes open wide’ awareness about their finances

Financial decisions are a crucial part of everyday life. So showing your children that their choices can have financial implications will empower them to understand the value of financial security, savings, and choices.

A good example of this is the conundrum between going away to University and staying local. Help them weigh up and work through the financial implications of either option, and whether to take on a student loan or work to finance it themselves. Perhaps, with a little help from you?


6. Be realistic about your support

How much are you prepared to support your kids financially – including funding their education, first car or first home? Being clear about this can help you set some guidelines in place, and it can also help your children form realistic expectations. You will always be there for them, but it’s important that they learn how to fly on their own.


7. Take their financial education one step further

What better gift than the gift of financial freedom? If your teens are earning money and would like to develop some goals, then Cole Murray’s ‘starter plan’ financial plan may be the best present for their future. One day, they will thank you for arming them with the financial knowledge and insight that a good financial plan can do for them at a young age.

Learn about Financial Planning

KEEN TO HELP YOUR TEENAGER BUILD GOOD FINANCIAL ACUMEN?

We can help you figure out where to start. Please call us on 06 870 7050 or book a call here.

 Talk to a Financial Planner


You might also be interested in: 

> Leaving the nest: Helping young adults navigate their financial world

> Five bad financial habits - and how to fix them

> Five money lessons you can teach your kids, and maybe yourself?


An Adviser Disclosure Statement is available free and upon request. 

 


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