One third of parents (32%) in the UK claim that the cost of living crisis has changed their attitude towards teaching their children about money, and they now intend to do more to educate them in this area, according to new research from personal finance comparison site finder.com.
The study found that 53% of parents plan to start teaching their children about money from the age of 11 or under, with 21% starting their kids off between the ages of 5-8, and 22% between the ages of 9-11. Only 26% of parents were planning to teach their children about money after the age of 12.
In contrast, 1 in 5 parents (21%) don’t intend to teach their children about money at all. The region of the UK where parents are least likely to teach their kids about money was found to be Yorkshire and the Humber, where 30% of parents do not intend to do this. This was closely followed by those in the North West (29%).
The research found that the cost of living crisis had the biggest impact on parents in London and Northern Ireland, with 44% of parents in these regions claiming that it encouraged them to do more to educate their children about money. On the other end of the spectrum, only 22% of parents in the South East said that the cost of living crisis changed their plans to educate their children on this topic.
What are the most popular methods of teaching children about money?
When asked about the methods parents use to teach their children about money, almost half (49%) of parents said that they use real life examples. In comparison, online guides and videos were the least popular choice, with only 15% of parents claiming to use these resources to teach their children.
The second most popular method used by parents was setting them up with traditional children’s banking accounts and sharing advice verbally (44% each). Almost a third (31%) of parents planned to set their children up with a kids’ pocket money app in order to help teach them about money.
To see the full report, visit https://www.finder.com/uk/debit-cards-for-kids#report2
Commenting on the findings, Kate Anderson, banking expert at finder.com, said:
“The cost of living crisis appears to be changing the way we think about money, and is highlighting the importance of educating our children about money management from an early age.
“A study by the University of Cambridge and The Money Service found that most children are able to understand the value of money by the age of 7. Therefore, educating your children about money early on can help them to develop positive habits in later life.
“Here are some tips for educating young children about money:
Engage in conversations around money. Talk to your children about where money comes from to help them understand that it is earned and not just given. If you can install this understanding in them from a young age, you’ll encourage a deeper understanding of the value of money.
Teach them the art of saving. Try to stress the importance of saving money by encouraging them to put their own money aside to purchase an item they really want. Setting them up on a kids pocket money app is a great way to do this, as they can receive money from birthdays, holidays or pocket money, straight into the app and manage it independently in there.
Be consistent. Remember that teaching your kids about money is a process which requires ongoing communication and reinforcement. Young children are great at soaking in information, so if you put the effort in early you’ll be able to install good habits that could last a lifetime.”