Do you worry about how your children will survive when everything we rely on is increasing in price?
While all we want for our kids is security and happiness, as parents we can sometimes come across as the bearer of cruel realities when trying to get them to understand the pressures that come from the rising costs of housing, food, utilities, petrol and the list the goes on.
So here are two simple things you can do today that will help guide your kids towards their own financial success and security:
1. First, instead of telling them that property prices are escalating and city living is becoming a nightmare or that they need a good job and to save better, let your kids in on how much your home costs and how prices have changed so they gain an appreciation for rising costs.
2. Second, it’s not easy for most children to think that far into the future, so start by asking them about what they want this year. Give them a questionnaire that gets them to focus on the next 12 months, which may include questions such as
· Do you want to have money saved by the end of the year?
· What job would you like or what career progression seems achievable by the end of the year?
· How mobile do you want to be – do you want to own a car?
Keep it fun, ask about relationships, travel or educational goals they would like to achieve.
The outcome is a one year plan and it creates the potential to extend it to five years.
So, what do we expect in the market?
The Australian market gapped up strongly on Thursday, well above 6,100 points, while attempting to build support to trade higher. Although the market is currently holding steady right now, which indicates it remains bullish, a strong move down below 6,097 points would indicate a short term change in sentiment. If this occurs, it may test historical support between 5,950 and 6,000 points, which would be considered normal and therefore wouldn’t change my overall view on the market.
The RBA’s decision to leave rates on hold, as well as solid balance of trade data, helped to keep the market buoyant this week. It is good to know that Australia’s GDP has grown above expectations for the quarter, with exports in commodities providing the higher result.
Dale Gillham Chief Analyst at Wealth Within – www.wealthwithin.com.au