Parents of working teens are being urged to make the most of Australia’s superannuation incentives and compound interest to give their children a powerful kickstart to building wealth.
According to The Australian, big benefits can flow from the government co-contribution scheme, which pays up to $500 a year into a low-income earner’s super fund if they contribute up to $1000 of their own money – less than $20 a week.
Financial strategist, Theo Marinis, started contributing to his daughter Sophia’s superannuation when she began part-time work at a supermarket at 14.
He told The Australian he doesn’t regret it as Sophia “is now 27 years old and has a super balance approximately 2.7 times the recommended super balance for a 30-year-old.”
“It’s definitely worth doing – it’s amazing how quickly it compounds and it sets them up and teaches them,” Theo said.
Sofia couldn’t agree more and told the newspaper she “feels a sense of security” knowing her superannuation is “compounding nicely in the background.”
“Superannuation is not something to sleep on – the sooner you start, the better off you’ll be,” she said.
Source: The Australian.