Household Finances a Problem for Some Kids; It Can Affect Learning and Social-Emotional Development

Article excerpt

WHILE it's said money can't buy happiness, new research has shown poor money management could hamper your kids' start in life.

According to the latest

AMP.NATSEM report Little Australians, the financial health of the household a child is growing up in could have an impact on their learning and social-

emotional development.

The report found that 20% of 4 and 5-year-olds live in families which reported at least one type of financial hardship, such as not being able to pay the rent or heat the home and going without meals.

Children in families facing multiple financial hardships recorded the lowest average overall development levels.

Further, children living in families who would find it

difficult to raise money in an emergency had lower overall development scores on average than those from families who would have no trouble raising emergency funds.

So how can people create

financial security for their families and set their kids up for the best chance in life?

With a little planning there are a few simple strategies all families can follow to improve their financial wellbeing.

Financial health checklist for families: Do you have a budget? It is essential for all families to have a household budget and stick to it.

If you spend more than you earn, it can quickly land you on the rollercoaster of debt. Learn to differentiate between needs and wants, as trying to keep up with the Joneses can put unnecessary financial pressure on families. …