According to Ph.D. research by clinical psychologist Dr. Meg Jay, the person you develop into during your 20s is the one you will be the rest of your life. Jay’s 2012 book ‘The Defining Decade’ says that in terms of good and bad financial traits, the habits you set in your 20s will build an everlasting foundation.

Helping to positively influence a younger person financially could be the gift that keeps on giving, as long as the advice you are offering is welcome and correct. We can’t help with making sure the advice is welcome, but we can suggest a few useful topics.

1. What not to do

Investment advice and strategies are always best left to the professionals. The performance of asset classes and industries changes as time goes on. New regulations, tax laws and other legislation can drastically alter the performance of a financial instrument.

2. Be penny-wise from day one

Teaching younger people to be wise with their pay packets is a good start. Time is on their side in terms of compound interest. If they can truly understand this then they will benefit throughout their lives.

3. Don’t leak dollars

In ages past the big expenses were the ones to be wary of, but these days marketers and retailers are far more savvy at removing money from our accounts in a much less noticeable fashion. Teach younger generations to budget, and to look out for their funds being eaten away by subscription providers such as digital music services, pay TV providers, mobile phone deals and pay-as-you-go software services, etc.

4. Use technology

Younger people live in a world saturated by technology and this can be a good thing. A seemingly endless list of apps is available to help save, invest, seek loans, figure out retirement savings plans, and calculate superannuation payments – all of which may assist in making sound financial decisions.

5. Gender specifics

It is always worth having a conversation with young women around the gender-specific challenges they could face when it comes to superannuation, and discussing how they might prepare financially, well in advance, for periods out of the workforce raising the family.

6. Do something

Empower young people to make choices and start something for their financial futures. Doing something is infinitely better than doing nothing. Even if they make mistakes, the lessons they learn early on will offer powerful insight and knowledge later in their lives.

If you would like to know more, click here to speak to a financial adviser who can give you more detailed information on the best approach for your situation.