If you have a teenager or young adult stepping into the workforce, one of the most valuable things you can give them may not be money at all. It could be helping them understand what to do with it.
It’s that time of year when many families are celebrating milestones.
High school is finishing. University degrees are being completed. First full-time jobs are beginning. Career decisions are being made and, for some, that first real pay packet is finally arriving.
For young people, the priorities that come with earning money for the first time are understandably immediate. There’s a car to save for, travel plans, study costs, rent, socialising and perhaps the longer-term dream of owning a home.
Superannuation probably isn’t high on the list.
As parents, we understand why. At 18, 21 or even 25, retirement seems impossibly far away.
But this is also an opportunity.
Starting work is one of those moments when good financial habits can begin. And taking some time to talk to your children about super now can help them understand that it isn’t simply money disappearing from their pay packet.
Super is an investment in their future.
“One of the greatest financial advantages young people have is something none of us can buy back later — time. We don’t need our children to become superannuation experts at 18, but helping them understand where their money is going, how it’s invested and why starting early matters can give them an enormous head start.” — Daniel Grusd, Director & Financial Adviser, Onelife Financial
Their Financial Future Will Look Different to Yours
For many parents, the superannuation system their children are entering today looks very different to the one they entered 20 or 30 years ago.
Super has become a much more significant part of Australians’ long-term wealth, and today’s young workers have an opportunity to benefit from decades of employer contributions and investment growth.
They’re also starting their working lives in a different financial environment.
Housing affordability, changing career paths, student debt, and the cost of living mean their financial priorities may not follow the same sequence ours did.
That makes financial literacy even more important.
The aim isn’t to tell your children exactly what to do with their money. It’s to help them understand their options so they can start making informed decisions for themselves.
The Advantage They Already Have: Time
One of the most valuable lessons you can teach a young investor is the power of compounding.
Super funds generally invest across assets such as shares, property and infrastructure. As investments generate returns, those returns can themselves generate further returns over time.
The earlier money is invested, the longer compounding has to work.
That doesn’t mean a young person should sacrifice all of today’s goals in favour of retirement.
Far from it.
But understanding that even relatively small amounts invested early can potentially have a meaningful impact later helps put super into perspective.
For example: a 30-year-old earning $100,000 who salary sacrifices an additional $50 each week could potentially add almost $120,000 to their retirement balance by age 65.
The specific outcome will vary, but the principle is important:
Small decisions made early have a very long time to compound.
Help Them Know Where Their Super Is
Changing jobs is increasingly normal for younger workers.
And while super stapling means a person’s existing super account generally follows them between employers, it’s still important that young workers know which fund they belong to and keep track of their account.
Multiple accounts can mean additional fees and, in some circumstances, duplicate insurance premiums.
A few simple questions can start the conversation:
Do you know which super fund you’re with?
Have you ever logged into your account and looked at where your money is invested?
Do you know how much your employer is contributing?
They don’t need to know every answer immediately.
The point is to make super something they understand and engage with rather than something they ignore for the next 20 years.
Super Is an Investment — Help Them Understand That
This may be one of the most valuable conversations to have.
For many young people, super is simply a line on their payslip.
They may not realise that their super fund is investing their money on their behalf or that they may have choices about how those funds are invested.
Encourage them to look at their investment option and understand, at a basic level, what it means.
What proportion is invested in growth assets?
What does risk mean when you have a 40- or 50-year investment timeframe?
What fees are they paying?
Do they have insurance through super?
The goal isn’t to choose the answers for them.
It’s to start building the confidence to ask the questions.
Balancing Today’s Goals With Tomorrow’s
Young people have very legitimate competing priorities.
Building an emergency fund, paying rent, completing study, travelling, buying a car or saving towards a home can quite reasonably be more important right now than voluntarily putting large amounts into super.
That’s why the conversation doesn’t need to be:
“You should put more money into super.”
It can instead be:
“Let’s understand how your super works and how it fits alongside everything else you want to achieve.”
That distinction matters.
Good financial planning is rarely about pursuing one goal at the expense of everything else. It’s about finding the right balance between enjoying life today and building choices for tomorrow.
What About the Government Co-Contribution?
For some young people, particularly those working casually or part-time while studying, the government’s super co-contribution may also be worth understanding.
Eligible low- and middle-income earners who make personal after-tax contributions to super may receive an additional government contribution of up to $500.
It won’t apply to everyone, and eligibility rules apply, but it’s another example of why understanding the super system early can be worthwhile.
A young worker doesn’t need to take advantage of every opportunity immediately.
But knowing those opportunities exist gives them choices.
Five Conversation Starters for Parents
Money conversations with children don’t need to feel like a lecture.
Sometimes a good question is enough:
1. Do you know where your super is?
Ask them to log in and actually look at their account.
2. Do you know what your super is invested in?
Use it as an introduction to shares, property, diversification and long-term investing.
3. What are you saving for over the next five years?
This opens the broader conversation about short-, medium- and long-term goals.
4. What happens to your money when you get paid?
Talk about spending, saving and investing before lifestyle habits become entrenched.
5. What would you like money to make possible for you?
This is perhaps the most important question of all. Money is a tool. Helping young people connect financial decisions with the life they want can be far more powerful than simply teaching them to budget.
A Financial Health Check for the Next Generation
Starting work is a natural time for a simple financial health check.
Encourage your child to:
- Check that their employer super contributions are being paid.
- Know which fund they belong to and whether they have any other accounts.
- Understand their investment option.
- Review fees and any insurance held through super.
- Understand what their payslip actually means.
- Start developing a habit of saving some of what they earn.
- Learn the difference between saving, investing and super.
- Consider voluntary contributions when their circumstances allow.
None of these steps is particularly complicated.
But together they can help establish something far more valuable: financial awareness.
Giving Them a Head Start
As parents, we naturally want to give our children opportunities.
Sometimes that means helping financially.
But teaching them to understand and manage money can be just as valuable.
Your child’s financial journey will be different from yours. The rules will change, markets will change, and their priorities will change.
What you can help give them is the confidence to engage with their finances, ask good questions and make informed decisions.
“Financial confidence doesn’t come from knowing everything. It comes from understanding enough to ask the right questions and knowing when to get advice. If we can help the next generation develop that confidence early, that’s a pretty valuable legacy.” — Daniel Grusd
Next Steps
If you have a son or daughter graduating, starting their first job or beginning to make their own financial decisions, consider making money part of the conversation.
Sit down together. Look at their first payslip. Find their super account. Talk about what they’re saving for, and introduce the idea that their money can work for them as well as be spent.
You don’t need to have all the answers yourself.
At Onelife Financial, many conversations with clients naturally extend to the next generation. We’re always happy to help families start those conversations and give young adults a clearer understanding of the financial decisions ahead.
Because giving your children a financial head start isn’t necessarily about giving them more money. Sometimes, it’s about helping them understand the money they already have.
For advice on your next steps, contact our team here.
