Parents often find themselves reluctant to have conversations about money with their children. A recent poll of 2,000 parents with kids aged 10 to 20 revealed a concerning trend. It was found that one in three parents are shying away from these discussions, fearing that their children might make the same mistakes they did. A significant 85 per cent of parents worry about giving their offspring bad financial advice. When it comes to key financial areas such as investing (29 per cent), budgeting (25 per cent), and credit scores (23 per cent), many parents lack confidence. Additionally, 21 per cent have struggled to have conversations about saving for university with their kids. The research by Skipton Building Society, part of the Skipton Group, shows that 51 per cent of parents want to give their children the best financial footing in life but feel unqualified to pass on the necessary knowledge. To address this, Skipton has teamed up with TV presenter and finance expert Tayo Oguntonade to provide parents with insights on how to broach this important subject.
Why Parents Are Hesitant
Parents' hesitation in discussing money with their kids stems from several factors. Firstly, they don't want their children to repeat the financial mistakes they made in the past. This fear often leads them to avoid these conversations altogether. Secondly, many parents lack confidence in their own financial knowledge and skills. When it comes to investing, budgeting, and understanding credit scores, they feel ill-equipped to provide accurate and useful advice to their children. As a result, they are reluctant to open up these topics and risk giving their kids the wrong information. Additionally, the complexity of financial matters can be overwhelming for parents, making it difficult for them to know where to start when discussing money with their kids.The Impact on Children
The lack of conversations about money with parents can have a significant impact on children. Without proper guidance, children may grow up with poor financial habits and make mistakes that could have been avoided. They may struggle with budgeting, saving, and making informed financial decisions. This can lead to financial stress and difficulties later in life. Moreover, when parents don't discuss money with their kids, they miss an opportunity to teach them important values such as responsibility and financial discipline. By avoiding these conversations, parents are depriving their children of valuable life lessons that could help them navigate the complex world of finance.How to Overcome the Hesitation
Overcoming parents' hesitation in discussing money with their kids requires a proactive approach. Skipton Building Society, in collaboration with Tayo Oguntonade, offers several suggestions. Firstly, parents can start by having small, open-ended conversations about money in everyday life. This could involve discussing the cost of groceries, how to save money, or the importance of budgeting. By making these conversations a regular part of family life, children will become more comfortable with discussing money. Secondly, parents can seek out resources and educational materials to improve their own financial knowledge. This will give them the confidence to have more informed conversations with their kids. Finally, parents can involve their children in financial decisions, such as setting a budget for a family vacation or helping them choose a savings goal. By giving children a sense of ownership and responsibility, they will be more likely to engage in these conversations and develop good financial habits.READ MORE