Scott Pape’s new book help children understand money

SCOTT Pape has told of how Australians get caught in a money trap early in life, lacking information to detect if they are not getting a fair deal.

SCOTT Pape hopes older generations will teach children today how to be financially literate so they are armed with information to detect if they are not getting a fair deal.

The disgraceful goings on at the financial services Royal Commission continued this week with fees for no service, the billing of dead people and misconduct, rocking the superannuation industry.

The Barefoot Investor said while many financial institutions and super funds have acted badly consumers need to arm themselves with better financial knowledge so they can sniff out unfair charges and inappropriate conduct.

“The banks are having to pay $1 billion for services they didn’t supply including fees for no services,” Pape said.

“The only way they can get away with that is when people don’t read their statements and they don’t understand them.”

The corporate regulator revealed payouts to customers of AMP, Commonwealth Bank, ANZ, National Australia Bank, Westpac and other large financial institutions has already climbed to more than $850 million.

Pape’s new book, The Barefoot Investor for Families: The only kids’ money guide you’ll ever need — is due out on September 24 — and he said there’s basic steps to teach children on how to gain financial acumen.

MORE: Scott Pape’s incredible road to financial success

Scott Pape's new book, The Barefoot for Families: The Only Money Guide Your Kids Will Ever Need. Picture: Supplied.

“It’s based around the Barefoot 10, there are 10 things your kid will do before they leave home that they must do,’’ he said.

“This includes having a zero fee savings account, they need to have a low-cost high growth super fund that they have chosen themselves and I show them how to do it.”

His latest book comes after the huge success of The Barefoot Investor which has sold more than 1 million copies.

Pape said arming kids with basic financial skills will help set them up for a much brighter financial future must start now.

“Most kids don’t have any financial confidence because they are not taught about it in schools,’’ he said.

“When you leave school if your parents don’t teach you anything about money the cycle repeats.”

The Barefoot Investor for Families: The only kids’ money guide you’ll ever need (HarperCollins) RRP $29.99, is available for pre-order now.

@sophieelsworth

Originally published as Scott Pape’s new book help children understand money