How to help your Gen Y’s understand money

"I see my role if needed as a financial mentor but one who can show warmth, practicality and empathy."
-Katherine Hann
September 6, 2016

How to help your Gen Y’s understand money

By Katherine Hann

How to help your Gen Y's understand money

 

How to help your Gen Y’s understand money

As many of you may know Gen Y’s (that is our adult children) are staying at home longer and their Baby Boomer parents (us!) are having to pay for it.

A lot of the time this makes financial sense – as long as the child is contributing and paying their own way (or at least some of it). However, even
though we know it is sometimes best to so NO! to our children, it is often the hardest thing to do.

What we are actually doing is teaching them to be dependent on us instead of self-sufficient, so what can we do to help them? Here are some tips to
help you get you started:

1. Be clear about how much money you will provide-set limits on what you are giving and agree on what it is for. Work with your children
to establish a budget by reviewing essential living expenses and debts.

2. Organise a monthly money review-regular money meetings keep your child accountable, but they can also be motivational, especially
if they realise the gains made toward reducing expenses, paying debt or savings for something special.

3. Loan money like the banks-If you’re planning on lending your child money, make it official with a written agreement. Outline a
repayment plan along with a deadline so your child knows to take your money seriously.

5. Charge rent if your child is living at home– I didn’t want to do this either as it was such a tough conversation to have but my
daughter must have seen it coming because she was ok with it by the time the conversation came around. Your children are probably already talking about
this with their friends and expect it.

6. Teach smart tracking-After years of scraping by and eating two-minute noodles, many Gen Ys fall into the trap of spending all of
their income or more when they begin earning a regular salary. This can cause more debt and stress than they or you want. Help them find and install
apps that will track and understand their spending and saving habits.
If you really want to help you children start on the path to financial success
,
it is never too early for them to see a financial planner. My Gen Y children refer their friends to me-you can too!