Wed, 04 May 2022 | education finance
According to the National Financial Educators Council, parents have a powerful influence on the adults their children become – including how they handle their personal finances. But our nation's families have a long way to go in terms of preparing children to become financially self-sufficient. This month the NFEC is highlighting a recent survey indicating that most parents fall short of teaching their teenagers key life skills they'll need to meet the financial challenges of adulthood.
The survey took place between April 20 and April 25, 2022, asking 1,502 respondents across the US the question, "Which parent taught you the most about money and personal finance?" Interestingly, the results indicate that respondents were slightly more likely to answer "Mother" rather than "Father" – 30.5% and 22.9%, respectively. But the primary take-away from the survey was that 46.6% responded "Neither" to this question.
You may view the full survey results at https://www.financialeducatorscouncil.org/parents-and-children-money-survey/
These findings held true across all age groups of survey participants (18-24, 25-34, 35-44, 45-54, 55-64, and 65+ years old). The results are significant because, as the NFEC points out, parents play an important part in preparing their children to meet the financial realities of adulthood. This same survey has been conducted annually since 2019 and each year "Neither" has been the top option. "Mothers" have beat "Fathers" each of the years.
"Parents need to get involved in their child's financial education. Financial literacy is not taught in schools with the rigor required to graduate youth ready for the financial challenges that await them as they enter adulthood. We encourage parents to start teaching early and often to help their children live a more secure and rewarding life." Vince Shorb, NFEC CEO.
These survey results are concerning because, when youth are unprepared to meet the financial challenges of adulthood, it has negative effects on the economy and the financial wellness of the whole nation. Although every child is born into a unique family and financial situation, children face multiple influences that will have an impact on their finances later – including parents, peers, the environment, and commercial advertising. Since very few schools offer financial education, parental involvement is key to raising financially healthy young adults and teaching kids about money.
Source: NFEC