Money habits passed to kids
MUMS talk to their kids about paying bills, budgeting and getting a job while dads are more likely to discuss debt, superannuation and home loans, a new poll says.
Australians who have had financial advice from parents are most likely to credit them with teaching about paying bills on time and in full. But some blame parents for fears of debt, or say they have inherited an attitude of living beyond their means.
Three-quarters of parents of children aged 15 and over chat to them about money, the survey for financial service group Suncorp found.
Half of those with younger kids also have money talks.
Saving and investing are the most common topics. That’s followed by budgeting, and explaining the difference between want and need.
Most Australians believe families should discuss finances more, the survey revealed.
Suncorp behavioural economist Phil Slade said that from the age of five to seven children could be taught basic principles, such as splitting pocket money into separate jars for savings, spending and giving.
“The earlier they are exposed to these concepts, the less likely they will make financial mistakes as teenagers,” Mr Slade said.
“It is about training the automatic side of our brain to act in responsible ways.”
Carli and Greg Boutle regularly discuss spending choices with children Alyssa, 14, Sienna, 9, and Malakai, 6
“To establish those habits they need to hear what to do and see what you do,” Mrs Boutle said.
The national online survey questioned 1580 adults, including 1061 parents. Half said they had learned most about managing finances themselves, though about three in five said parents had passed on habits or advice.
The top good habits taught were paying bills (53 per cent); saving (49 per cent); and tracking savings goals (40 per cent). Bad habits were living beyond means or fearing debt (17 per cent); credit card debt or dependence (11 per cent); and budget problems (10 per cent).