What to Teach Kids About Money
CREDIT: Allowance Image via Shutterstock
Parents are spending more time talking to their kids about money. New research has found that 77 percent of parents said they are currently talking with their children about the importance of being financially literate, compared with just 21 percent said they were not teaching their children about how to manage money.
With 75 percent of adults saying they wish they were more educated about money when they were younger, the research shows that adults are trying to make sure their children do not have the same feelings when they grow up. Overall, a majority of parents feel that financial education starts with teaching the basics of a savings account. Parents also feel that teaching the importance of a budget, the importance of being frugal and the basics of credit cards are also top financial lessons their children should learn.
Parents are teaching these lessons to their children in a variety of ways. Notably, 72 percent of parents said they gave their children an allowance to teach them about money, up from 45 percent last year. Overall parents feel that giving an allowance will teach children the value of a dollar and how to budget. Parents also said they used current events to teach their children about their financial health.
"It can be tough to fit in financial learning amidst busy school and activity schedules, but many parents take advantage of everyday happenings to talk to their kids about good money habits," said Jackie Warrick, president at CouponCabin.com, which conducted the research. "Start conversations with your children when you pay for something at the grocery store or they see you using coupons. Small and natural discussions about money can be the best building blocks to raising financially fit kids."
The information in this research was based on the responses of 2,262 adults, 461 of whom were parents. The research was conducted by Harris Interactive for CouponCabin.