It’s brutal out there for kids these days.
Property prices have gone mental. AI is changing the whole landscape of careers. Uni degrees that take decades to pay off.
I find myself having this conversation with other parents constantly. It’s always around helping the kids, so they don’t struggle financially down the line.
Since becoming a dad myself, this really hits home. Looking at my girls, I just want to see them thrive, feel secure, and be happy. The protective dad instinct kicks in hard when you think about the financial mountains they’ll have to climb.
Your face mask first. Then little Johnny’s.
But here’s where I draw a comparison to the air hostess safety demonstration.
You know the drill – you’re buckling your seatbelt, trying to look interested while they demonstrate the oxygen mask dropping from overhead. They always say: “Put on your own mask before assisting others.”
It’s the same principle when it comes to helping out your wildlings.
Sort Your Own Financial House First
While wanting to help your kids is genuinely admirable, you can’t pour from an empty cup. Before you start setting aside money for their future, ask yourself:
- Have you paid off consumption debt?
Credit cards, personal loans, car loans – the stuff that’s costing you a fortune in interest and giving you nothing back. - Do you have a cash reserve?
That emergency fund for when the car breaks down or the fridge carks it. You know, life’s little surprises. - How’s your mortgage tracking?
Are you making extra repayments to cut years off your loan? Or are you just keeping your head above water? - Are you investing for your own future?
Building wealth outside your super so work becomes optional before you’re chained to your desk until 67? - Is your super sorted?
Maximising contributions for tax benefits and securing your own retirement?
Once you’ve ticked these boxes, you’re in a rock-solid position to help your children. Try to do it the other way around, and you’re building a house of cards that could collapse at the first strong wind.
And trust me, strong winds come. Interest rate rises. Unexpected job loss. Tax law changes. Superannuation rule tweaks. You don’t want to end up raiding the kids’ future fund just to keep yourself afloat.
The smartest way to help your kids – Be their financial role model
Recent research backs up what we already know deep down – children pick up their money habits by watching their parents in action.
Whether you’re demonstrating smart financial decisions or making a mess of your money, your kids are absorbing every move like little financial sponges.
The studies are crystal clear: parental financial habits, good or bad, get passed down to the next generation. Kids who watch their parents save regularly, pay bills on time, and make thoughtful spending decisions are far more likely to develop those same habits. On the flip side, children who see their parents stress about money, argue over finances, or spend impulsively tend to repeat those patterns.
The good news is that you don’t need to be perfect. You just need to be intentional about the financial behaviours you’re modeling.
How to Be a Strong Money Role Model
- Talk money without the drama: Have normal conversations about household expenses, saving goals, and financial decisions. Keep it age-appropriate but don’t treat money like a dirty secret.
- Show them the process: Let your kids see you comparing prices at the shops, checking your bank balance, or transferring money to savings. Make these everyday money tasks visible.
- Demonstrate delayed gratification: When you want something but choose to save for it instead, let them see that decision-making process. “I’d love that new coffee machine, but we’re saving for our holiday first.”
- Handle money mistakes openly: If you overspend or make a financial blunder, own it and show them how you’ll fix it. Kids need to see that everyone makes mistakes – it’s how you recover that matters.
- Include them in age-appropriate decisions: Should we eat out tonight or cook at home to save money? Let them be part of simple financial trade-offs.
- Stay calm during money conversations: Even when discussing tight budgets or unexpected expenses, keep your cool. Kids who see parents stressed about money often develop money anxiety themselves.
Your kids are watching everything you do with money. Make sure you’re giving them something worth copying.
The financial boosts your kids will thank you for
Financial foundation sorted, role modeling nailed – now let’s talk about the actual dollars and cents strategies that can give your kids a genuine head start
The Little Ones (0-10 years)
Investment bonds: These are brilliant for building wealth for kids. You invest after-tax dollars, and after 10 years, everything comes out tax-free. Perfect for giving them a nest egg when their 18 or 21 to pay for uni or a deposit for a home loan.
Family trust distributions: If you’ve got a family trust structure, you can distribute income to the kids (up to $416 each before they pay tax). It’s like giving them a tax-free Christmas present every year.
The Teenagers (11-17 years)
First job super strategy: When they get their first casual job, match their super contributions. They put in $100, you put in $100. Teaches them about saving while supercharging their retirement fund. Note, you won’t be able to claim your contribution as a tax deduction.
Savings matching: For every dollar they save towards something meaningful, like a car, you match it. Builds good money habits while helping them reach their goals faster.
Education funding: Use offset accounts to build education funds. The money stays accessible for school fees or university costs while helping reduce the interest on your home loan.
Young Adults (18+ years)
First home deposit help: There are quite a few ways to help your offspring get on the property ladder:
- Gift them cash directly for the deposit.
- Go guarantor on their loan, so they need less upfront.
- Help them use the First Home Super Saver scheme – they salary sacrifice into super (getting tax benefits), and you can top up their take-home pay to offset the reduced income.
- Or park money in your own offset account (saves you interest), then gift it when they’re ready to buy. The key is matching the strategy to what works for your family’s tax situation.
Share investment kickstart: Open an investment account with them and dollar match them as they invest. Perfect way to teach them about building wealth while giving them a head start.
The clever structures
Offset accounts: Keep money in your home loan offset, but earmark it for the kids. It saves you interest while building their future fund.
Family trusts: Distribute investment income to adult children who are on lower tax rates. Keeps more money in the family instead of paying it to the ATO.
Superannuation strategies: Help them salary sacrifice from their first job. A small sacrifice early can mean hundreds of thousands more at retirement.
Investment bonds: Specifically for university costs or as a lump sum for their first property.
The bottom line
Getting your financial house in order isn’t selfish – it’s strategic. Once you’ve got your own oxygen mask on, you can help everyone around you breathe easier.
Your kids need you to be financially strong more than they need a head start that compromises your security. Build your wealth first, then extend that helping hand from a position of strength.
After all, the greatest inheritance you can leave your children isn’t money – it’s the knowledge that you sorted your finances and lived life on your own terms.
That’s a lesson worth more than any trust fund.
Any questions or concerns?
If you’re ready to sort your financial house and start building that platform to help your family, it all starts with having a conversation – book a 15 minute chat here.
Stay Beautiful!
John Manserra
Certified Financial Planner®, Director
Apex Advice – Geelong Financial Advisers for professionals and tradies who want to organise, grow and spend their money with confidence.
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Important:
This is not tax advice. Your personal objectives, needs or financial situation have not been considered when preparing this information.
Note: The information contained in this update has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs.
You should seek advice before making any decision regarding any information, strategies or products mentioned to consider whether that is appropriate to your own objectives, financial situation and needs.
Current at 26 August 2025