We want to help kids spend smart!
It all starts with the power of family conversations and guidance to build their financial know-how.
Download our Spending Checklist to start the converstation today.
Check out our video below on five simple rules for consious spending.
Building Financial Resilience with Conscious Spending
We’ve seen some serious financial fallout from the COVID-19 pandemic, primarily underpinned by unexpected loss or reduction in income. This has affected individuals, families and businesses across a range of sectors, age groups and income levels – through no fault of their own.
Research shows that Australians are much better at managing money day-to-day than being prepared for unexpected expenses. The bottom line is that many of us just don’t have the savings needed to deliver some measure of financial resilience - a safety net in times of crisis.
Financial well-being is underpinned by the simple principle that saving is critical. And the only way to achieve this is to spend less than you earn ….. ALWAYS! You may not always be able to control your income, but ultimately, you’re in charge of your spending.
In order to take charge of your spending you need to be a conscious spender. Clear the obstacles working against you, including, removing the emotions from financial decision making.
Phil Slade, Founder, Decida; and former Suncorp Behavioural Economics had this to say about the emotions and behaviours associated with spending.
I often get people asking me how it is that they are earning more than ever, but can’t seem to increase their savings? Irrespective of income level, many people seem to struggle to put away savings. When I dig a little deeper, this problem usually stems from poor spending habits we pick up as kids. The advice I give to most people is the same. Irrespective of your financial situation, saving is more about controlling spending than it is about the discipline of saving.
This makes sense when you realise that money is inherently emotional. Spending money can give you a short term good feeling when you’re sad, or when things are happening to you outside of your control. It’s only short term though, so you keep spending to keep the good feeling going.
When we earn more, we feel we deserve more (often convincing ourselves that we ‘need’ more things). Learning to control the emotional urge to spend is the first step toward getting control of your finances and making yourself more financially resilient in a crisis.
With access to digital devices, online services and financial products that make it so easy to spend, teaching kids good spending habits is critical to their long-term financial health.
Want to talk to your kids about spending? Download our Spending Checklist here.