For today’s children, the concept of money is a little different to that of two generations ago, mostly due to the number of transactions performed electronically without the use of physical cash, making it harder to track.  This is a global phenomenon and one that will continue to grow and evolve.

Financial literacy – teaching our children and grandchildren about money, its’ usefulness, and the wonder of compound earnings, is up there in importance with other life skills such as appropriate hygiene and safety.

But where do you start?  If you are not all that financially savvy yourself, then one of the best places to begin is by visiting ASIC’s Money Smart website.  This site is dedicated to increasing the financial literacy level across the board and helping you make the most out of your money.

It’s a great resource for parents and teachers alike wanting to impart solid financial skills to their charges. 

A key concern currently facing teenagers is managing the cost of mobile phone usage. Managing usage and the cost of data access and highlighting the importance of living within your means is critical to ensuring a young person’s budget is not blown out by one month of bill shock. 

I’d also like to highlight the importance of “compound earnings” – the eighth wonder of the world.   “Compound earnings” is the growth of your investments over time through the continual reinvestment of investment income.  Learning about the power of compound earnings early gives a person the opportunity to benefit from investing from an earlier age. And as we know, time is the main key to benefit from compound earnings.

The biggest message for all young people is to take an interest in and control of your finances.  Make sure you are the one in control of your spending, and always make sure you build into your budget savings for the future.  These savings might be for a defined goal such as a holiday or house deposit, or could even be to start investing.

For those who are looking to educate themselves, visit the Money Smart website today.  However the financial world can become complex, particularly when you start looking at your superannuation and related strategies. Those with more complex needs or questions should seek the counsel of a certified financial planner.