Parents can have a profound impact on their child’s relationship with money throughout their lifetime. In fact, teaching your kids to be financially savvy is one of the most critical life skills you can give them.

As they grow, conversations about family budgets, saving for the future and investing can give kids greater confidence about their financial future. Here are nine things you need to teach your kids about money before they fly the nest.

Your kids’ main money lessons – and modelling – will come from you, not school.Credit: Aresna Villanueva

1. The cost of living: It’s not cheap to keep a roof over your family’s head. Explaining the regular costs that come out of your weekly earnings gives kids an early picture of the price of everyday life.

By understanding that electricity, insurance, school fees and the telephone bill adds up, kids start to see the bigger financial picture for your household.

If your kids are young, point out the price of brands and items on sale at the supermarket. For example, tell them to find the vegetables or brands of yoghurt on sale this week.

2. Regular savings habits: Introducing good savings techniques from an early age helps kids build better money habits. This can help them keep out of serious debt later in life.

Bucketing money for saving and spending is a great start. Saving a percentage of their pocket or birthday money into a bank account for a car can give your child some financial direction.

Explaining that some of what they earn can be spent how they want teaches kids to loosen the purse strings a little........

© Brisbane Times