For Sydney-based finance strategist Jerry O' Brien, teaching his 10-year-old son to be smart with money is critical for his personal development.
He believes that showing him the basics such as how to budget, spend, and save will help him establish good money habits in the future.
He spoke to SBS Filipino about some of the strategies he employs.
Spend, save and invest jars
With the help of his supportive wife, Mr O'Brien taught and applied his derived version of the money jar concept which he started more than a year ago.
The couple is both elated by the outcome and can vouch for the improvement of their son’s spending habits.
The parents give their son pocket money for doing households chores such as gardening and washing the car and then let him decide how much money to place in the spend, save, and invest jars.
“The turnout was good because he became conscious of his spending. It turned out well, his decision-making on money improved. I want to teach him the value of money that it is not something he can get easily, he has to work for it and you need to exert effort to earn it.” Mr O'Brien says.
Introduce the basic personal finance terms to your child: spend, save, invest. Source: Pexel
Mr O'Brien also believes that teaching his child how to save and spend money consciously, how to invest money for growth, and how money energy flows, will help his son especially when he transitions to adult life.
“I want him to make mistakes early on his decisions so he will know the consequences of spending and overspending while he is young.”
File Source: AAP Image/Joel Carrett
Millennial money mistakes
In running his own finance company, Mortgage Station, Mr O'Brien saw how millennials tended to have poorer spending habits.
Millennials are seeking more convenience and high-end experiences, he describes.
He says it's easy to fall into the trap of spending on big things that could lead them to huge financial debts.
“I've seen the current trend- particularly with millennials. Although they have a good salary, their saving habits are bad. There is a lack of financial literacy.“
It starts at home
Mr O'Brien believes that a financially aware child is a product of financially healthy parents. Mums and dads must lead by example.
“It should start with self-assessment how we personally spend our money. From there, we assess our kids if it is time or are they mature enough to handle the finance side of things."
Mentoring their child also gave the couple an opportunity to be closer to him and encourage one another as a family.
“As parents, it is our job to educate our children,“ he quips.
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