Finance Choices
Children not taught about money
Parents are more likely to talk to their children about sex than savings, a new study reveals, with one child in four never being told about money.
National Savings and Investments today reveals that while 94 per cent of parents think it is important to pass on financial knowledge to their children, fewer than three quarters actually do.
What is more, even the people that do try to educate their children about finances often overlook important aspects.
Of the parents that do talk to their children about money, less than half mention budgeting, fewer than one in three mentions credit cards, and only 35 per cent mention debt.
"Although parents have good intentions, a significant proportion are failing to talk to their children about money. With the financial pressures on the younger generation greater than ever, it is vital that we help educate children on money matters," said Dax Harkins, senior savings strategist at National Savings and Investments.
Parents would appear to agree, in principal, with 88 per cent saying it is their job to educate children about money. However, in practice they seem to miss the point - with fewer than one in four explaining the finer points of money management such as interest rates and inflation.
Overall, more parents talk to their children about sex (63 per cent) than savings (59 per cent).
Mr Harkins commented: "There are many ways to get children involved in savings and to make them realise what money is worth, whether it?s using a piggy bank to make them save for things they want or investing in a children?s savings account.
"With the easy availability of credit and challenges like getting on the housing ladder getting even tougher, the sooner children are educated about financial matters and the better their understanding; the easier it will be for them to make responsible decisions later on in life.
"If this education gap continues and many are forced to simply ?pick up? financial education as they go along, it is key that financial providers make their products and services as simple and straightforward as possible to ensure the next generation of savers aren?t left in the dark."
National Savings and Investments today reveals that while 94 per cent of parents think it is important to pass on financial knowledge to their children, fewer than three quarters actually do.
What is more, even the people that do try to educate their children about finances often overlook important aspects.
Of the parents that do talk to their children about money, less than half mention budgeting, fewer than one in three mentions credit cards, and only 35 per cent mention debt.
"Although parents have good intentions, a significant proportion are failing to talk to their children about money. With the financial pressures on the younger generation greater than ever, it is vital that we help educate children on money matters," said Dax Harkins, senior savings strategist at National Savings and Investments.
Parents would appear to agree, in principal, with 88 per cent saying it is their job to educate children about money. However, in practice they seem to miss the point - with fewer than one in four explaining the finer points of money management such as interest rates and inflation.
Overall, more parents talk to their children about sex (63 per cent) than savings (59 per cent).
Mr Harkins commented: "There are many ways to get children involved in savings and to make them realise what money is worth, whether it?s using a piggy bank to make them save for things they want or investing in a children?s savings account.
"With the easy availability of credit and challenges like getting on the housing ladder getting even tougher, the sooner children are educated about financial matters and the better their understanding; the easier it will be for them to make responsible decisions later on in life.
"If this education gap continues and many are forced to simply ?pick up? financial education as they go along, it is key that financial providers make their products and services as simple and straightforward as possible to ensure the next generation of savers aren?t left in the dark."
posted by Bruce Wayne at 7:17 AM
Children not taught about money
3 Comments:
I'm not surprised. Who's meant to teach them exactly? Most of the parents I know don't know anything about money themselves so a fine example they'd be!
So they're not mentioning budgeting, they're not mentioning credit cards and they're not mentioning debt! What the heck are they mentioning exactly?
I can't say I'm surprised by this at all. Most parents I meet just want to be 'cool' so talking about sensible things like money wouldn't do their street cred any good!
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