While you have years of experience, your grandchildren might not yet appreciate the importance of developing good financial habits early. Teaching them the importance of simple money concepts like saving and budgeting early – even before their first job – will build a solid foundation for them in the future.

Start saving early 

The compounding effect of a dollar invested when someone is 20 usually means that its value is greater over time than when it is invested at 30 or 40. We know it can be harder for younger people to put money aside, but there may be a way that you can help. Making super contributions on behalf of your grandchild is a great way to boost their wealth whilst increasing their understanding about superannuation.  

Open a good savings account

There are plenty of options when it comes to opening up a savings accounts, so help them find a good one. Look for an account with no account keeping fees that will pay a decent interest rate on the savings they may accumulate. Shop around – this might not necessarily be with your bank. You can then encourage them to develop a budget and start saving. 

Make the most of government incentives

Get them up to speed with the range of government incentives in place, especially for low-income earners. 
If your grandchild is working part-time, they could be eligible for a government co-contribution when they contribute to their super. 

TRY THE CO-CONTRIBUTION CALCULATOR

Gifting money to your grandchildren

Before gifting money to your grandchildren there are a few rules you should be aware of. For instance, the gifting free area for individuals and couples is up to $10,000 in a financial year, up to $30,000 over five consecutive financial years.* If you give more than these limits, it could affect any Age Pension you receive. 

MORE ABOUT GIFTING

Build your own TelstraSuper family – we’re open to everyone!

If you're a happy member of TelstraSuper you can refer your children and grandchildren to join (if they are over 15 and working).

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