The Financial Rules of Thumb focus on teaching young people simple and practical behaviours around planning for the use of money.
Use the activity sheets and videos below as a discussion starter with family and friends to explore these concepts in a little more detail.
1. Pay Yourself First
This rule focuses on the importance of saving, (paying yourself), BEFORE spending, (paying others). Don’t save what’s left over after spending. Spend what’s left over after saving.
Practise this financial rule of thumb by setting a savings goal and always saving a percentage of ALL income.
Put this rule into practice. Choose between a simple/quick exercise, or a more challenging activity to work through together.
2. Spend Less Than You Earn
This rule focuses on living within your means by setting a budget. It’s easy to be swept up in consumerism, to want every gadget and new fashion item – but it’s also easy to access credit and get into debt.
Practise this financial rule of thumb by setting a budget, AUTOMATING SAVINGS and establishing a plan in order to avoid financial stress.
Put this rule into practice. Choose between a simple/quick exercise, or a more challenging activity to work through together.
Download Spending Tracker
3. Shop Around
This rule focuses on becoming a critical consumer by taking the time to shop around for the best price as well as building the skills for negotiating the best price on purchases.
Practise this financial rule of thumb on small purchases to begin with, you’ll soon build the confidence and skills to get the best deal on large purchases, financial products and utilities.
Put this rule into practice. Choose between a simple/quick exercise, or a more challenging activity to work through together.
4. Time Is Money
This rule focuses on the importance of time and the impact of compound interest when it comes to saving money.
Practise this financial rule of thumb early in life and continue to save over the long term and you’ll maximise savings.
Put this rule into practice. Choose between a simple/quick exercise, or a more challenging activity to work through together.
5. Sleep On It
This rule focuses on restrained spending and taking the time to think about spending money on something which wasn’t budgeted for.
Practise this financial rule of thumb before every purchase, and before you know it, you’ll start to distinguish between needs and wants, which will help you make better purchasing/spending decisions.
Put this rule into practice. Choose between a simple/quick exercise, or a more challenging activity to work through together.