10 Financial Steps Your Kids Should Take: Before They Leave Home

Every generation of parents hope that their kids are better off financially than they are.

Unfortunately, many parents around the world fear that this will not be the case due to a range of factors including rising house prices, soaring personal debt and a growing trend away from permanent full- time jobs.

A recent study conducted by the Australian Financial Planning association discovered that an alarming 62% of parents surveyed think that their kids “the invisible money generation,” will be financially worse off than them.

Lack of financial literacy and the inability to make sound financial decisions is a global issue that applies to both parents and kids alike.

This issue needs to be tackled on several fronts including governments, educationalists and parents, especially parents.

Scott Pape is a licensed financial advisor, and the founder of the Barefoot Investor community, a financial services business that broadcasts, and publishes financial education via newsletters, emails, websites, television, radio, audio recordings, seminars and written reports.

Late in 2018, Scott released a new book titled “The Barefoot Investor for Families: The only Money Guide Your Kids Will Ever Need.”

His first book, “The Barefoot Investor: The Only Money Guide You’ll Ever Need”, sold over a million copies and his new book is well on the way to achieving the same.

The Barefoot Investor for Families focusses on the 10 ‘money milestones’ kids should nail before they leave home. Scott is on a ‘Jamie Oliver – like’ crusade to help parents and their children improve their financial skills and chances of a prosperous and happy future.

This Parenting Breakthroughs special report highlights the top 10 financial steps expert Scott Pape believes kids should have successfully executed, before they leave home.

1. Opened a zero – fee high – interest savings account

“It’s quick and dirty and you can do it while eating a taco,” Pape says. Shop around for the best value account. Many banks offer an everyday account linked with a high interest savings account.

2. Bought and sold something second- hand

“The average family has $5,400 worth of trash lying around … and you’re going to turn that into treasure,” Pape promises.

3. Learned to cook two lost cost, delicious and nutritious meals

Kids account for around 30% of fast food purchases where you pay a massive premium for ‘convenience’ at the expense of nutrition.

4. Volunteered in their community

Pape calls this chapter ‘breaking the brat.’ The idea is to help kids appreciate what they have and to understand that many are not so fortunate.

Older kids can buy some food and drop it off at a collection point and younger kids could take some food from the pantry (with mom’s permission of course.)

Teenagers could check with their local council for opportunities to give back to their community such as visiting an aged care home.

5. Saved you at least $100 on your grocery bills