A recent survey has shown that a whopping 85% of parents are concerned about passing on poor financial knowledge to their children, leading them to avoid discussing money matters entirely.
The poll, which surveyed 2,000 parents with children aged between 10 and 20, discovered that a significant number of parents lack confidence in their own financial skills.
Most parents said they are unsure about investing, budgeting, and managing their credit score. Consequently, they feel ill-prepared to explain these concepts to their children.
Reflecting on their own experience a solid 76 per cent wish they had received more financial education when they were younger, as such over half are eager to give their children the best possible start in life financially.
Yet, 41 per cent of parents still avoid talking about past financial mistakes, and 66 per cent believe that financial literacy should be taught in schools rather than at home.
To tackle this issue, Skipton Building Society has teamed up with TV presenter and finance expert Tayo Oguntonade to offer advice on how parents can start these conversations.
He stresses that children often view their parents as authority figures, and while it’s natural for parents to want to protect them from their own financial errors, avoiding these discussions can ultimately cause more harm than good.
“Discussing money matters early equips children with practical skills and a healthy understanding of finances, setting them up for a brighter financial future,” he advises.
Two thirds of parents try to involve their children in conversations about family finances, but over half are concerned that such discussions could spark financial anxiety among the youngsters.
Helen McGinty, head of financial advice at Skipton Building Society, commented: “The economic landscape is always evolving, which is why it’s crucial for both parents and children to embrace continuous learning about finances.
“By seeking proper financial advice, parents can make informed decisions and pass down valuable knowledge to their children. This not only helps families navigate challenges together but also empowers the next generation to build a stronger, more secure financial future.”