Even as adults, we often don’t think about our superannuation and how it’ll impact us later in life. At some point, often when they get their first job, your child will hear about superannuation.
It’s one of those topics that feels ‘adult’ but the foundations are surprisingly simple. Here’s a three step guide to what super is, why it matters and how starting early matters.
Superannuation, or super, is money your employer puts aside for your future, which goes into a superannuation account in your name. It's in addition to what you are paid. In Australia, 12% of your income should be paid into super – this is the mandatory Superannuation Guarantee (SG) rate.
Employer contributions to superannuation are invested to earn money and sit in an account which cannot be withdrawn from until preservation age. Important things for your child to understand are:
💸 Superannuation is earned, and in addition to their income
🕰️ It is set aside, and cannot be accessed until later in life
✔️ It’s important to check that super is being paid
📉 Tax can be lower on superannuation than other types of investments
For kids and teens, superannuation can feel very far away – and that’s okay. The goal is to help them understand that some money is for now, and some money is for later. Having steady contributions to their superannuation funds can help them:
📈 Build long-term financial security
💲 Reduce pressure on future income
💡 Give them more choice in life
Connecting super to familiar ideas they already understand – like saving for something big, looking after their future self, or making choices that pay off over time – can help them build their money confidence.
While contributions might feel small now, time is superannuation's best friend. Superannuation contributions don’t just sit there – super funds invest the money so it can grow and over time – like planting a tree early and letting it grow.
Good habits form early and by understanding how superannuation works, your child learns that:
🛑 Money isn’t just for spending now
🪴 Small moves now = big moves later in life
Talking to your child about superannuation doesn’t need to be complicated – it can start with these three conversation starters, and even day to day actions like checking their super balance. By introducing super early, you’re helping them build awareness, confidence and good habits around money that will grow with them over time. For more tips, tricks and conversation starters, visit our Learn Hub.