A Healthier Easter Alternative | March 24, 2016
On average, Australians consume around 5kg of chocolate every year, and with the Easter long weekend fast approaching, our consumption levels are estimated to increase by up to 50%. That’s a lot of chocolate! But if you’re after a healthier alternative this Easter, it may be worth considering a different kind of Easter egg gift for the kids – a nest egg. You might not be able to eat it right away, and it certainly won’t taste as good, but it’s a gift that will keep on growing well after the Lindt bunnies and Cadbury eggs are tucked away in our bellies.
We take the view that if you are financially secure, it means you’re happy and able to provide a stress-free, loving setting in which your children can flourish – you are an essential factor in your children’s development. But if you’ve got yourself covered already, giving your kids a financial head start can be a terrific idea.
The strategy you choose to ensure your children’s financial security is up to you. It doesn’t have to be a big gesture – even setting up a savings account for your kids and helping them to save some money every week can pay dividends on a range of levels.
Firstly, what a habit to get into? Learning to save regularly is a skill to last a lifetime and one some adults struggle with. Make saving money second nature for your kids by embracing this habit early on. “Savings are a lost art,” says Tapel Cafer of Complete Financial Balance, “in a world of credit and debt, if your child can reach their early 20’s with cash in the bank, they have a good start in life”.
Secondly, a little bit can go a long way – and the earlier you start, the easier it is. Let’s say you have a 5-year-old and you agree to deposit $5 a week into a designated savings account. By the time your child is 10 (assuming an interest rate of 2.50% p.a.) they will have almost $1,400 in their nest egg. Let’s say you then increase your weekly deposits to $10, by the time your 5-year-old turns 18 they’ve got a nest egg worth over $6,000 – that’s a lot of chocolate bunnies! ASIC’s MoneySmart Savings goals calculator is a great tool to help you work out your own savings plan.
Third, it pays to get your kids interested in and learning about money and managing their finances at all ages. The top priority for the Australian Government’s National Financial Literacy Strategy 2014-2017 is to ‘educate the next generation’ on the basis that equipping our kids with the ability to make good financial decisions gives them an essential skillset to use for the rest of their lives. If you read our “You, Your Kids, and Money” blog (Read it here) , then you’ll see we couldn’t agree more.
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.
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