Money management guidance 'needs to be given early'

It is crucial that young people are taught about the importance of managing money from an early age, a number of financial experts have claimed.

One of these is Cameron Spears, financial planner for Ord Minnett, who states that as a credit card can be obtained from the age of 18, youngsters need to understand the concept behind budgeting "early in life".

Speaking to Adelaide Now, he claims their parents should teach their offspring about various money management techniques as well as encouraging them to place money into saving accounts.

Meanwhile, Chris Ward, general manager of BankSA - which includes the BankSA credit card among its range of products - claims that parents should get their children to follow their own example of prudent money management.

He adds that any lessons on savings could "quickly fall on deaf ears if children see their parents spending up on credit and then struggling to meet repayments".

Similar comments were recently made by Genesys financial adviser Jacquie McCarthy who told the publication that as soon as children begin to ask for things their parents should teach them about managing money.

Written by Bret Clement