Superannuation is one of the most powerful tools Australians have to build long-term financial security.
Yet, for many young people, it remains out of sight and out of mind. They may see it as something for “future them” to worry about — a distant concept that has little relevance today.
But the truth is, the earlier you understand and engage with your super, the greater the benefits of time and compound interest.
Educating Young People About Super
The first step to helping the next generation value superannuation is education. Schools teach financial literacy, but often without the practical examples that make the lessons stick. As parents, mentors, and community members, we can bridge that gap. Start by talking openly about what superannuation is — a long-term savings system designed to provide income in retirement, funded by employer contributions, investment returns, and voluntary savings.
A powerful way to make super “real” for young people is to demonstrate how small contributions grow exponentially over time. Showing your children a compound interest calculator, or even a projection of how $10 a week added early in their career can lead to thousands extra in retirement, can spark genuine interest.
Should Parents Share Their Super Balance?
This is a tricky question — and it depends on your comfort level. Sharing your actual balance can be a meaningful lesson in transparency, but it’s not necessary to reveal every financial detail. The goal is not to compare wealth but to demonstrate the concept of long-term growth. For example, you might show a graph of your super’s growth over the years and explain how regular contributions and investment returns helped it grow.
Children learn financial attitudes by example. When they see you take your super seriously, they’re more likely to do the same. Keeping finances secret can sometimes reinforce the idea that money is too complex or “taboo” to discuss. Instead, treat these conversations as opportunities to instil healthy financial habits early.
The Motivation Factor
Imagine if we saw our superannuation grow as regularly as we see our bank balance. That sense of visibility could motivate us to take greater control — to consolidate old accounts, choose better-performing investment options, and take advantage of the generous tax concessions available. Seeking advice from a qualified Financial Adviser can make all the difference, ensuring that your strategy aligns with your goals and risk tolerance.
Top 5 Tips to See the True Value of Your Super
- Engage Early: Check your super balance regularly and understand where it’s invested. Small actions early on have big payoffs later.
- Consolidate Accounts: Multiple accounts mean multiple fees — combining them can save money and boost returns.
- Take Advantage of Tax Concessions: Contributions made through salary sacrifice or personal after-tax contributions can be highly tax-effective.
- Seek Professional Advice: A Financial Adviser can help tailor your investment strategy and identify opportunities for growth.
- Stay the Course: Super is a long-term investment — don’t panic during market fluctuations. Time and compound interest are your greatest allies.
Superannuation isn’t just about retirement — it’s about giving your future self financial freedom. Teaching young people this early helps build a generation who value, nurture, and understand the true power of long-term investing.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)