Money chat still taboo at home

Anthony Keane looks at why parents still avoid talking about family finances with their children HOW TO TALK TO CHILDREN

MONEY talk is one of the few remaining taboos as more than half of Australian parents avoid discussing their financial situation with their children, research has found.

A Suncorp study discovered that while the age of children was the biggest barrier for money discussions among younger mums and dads, parents aged over 55 were not talking either; 24 per cent said they didn’t want to make their children feel uncomfortable, 24 per cent said the children were not interested, while 24 per cent said they were not interested.

Only one in 10 parents said they would disclose household salaries to their children.

Suncorp behavioural economist Phil Slade said keeping quiet about money was a cultural issue – “it’s just not something that we do’’ – although people were more willing to discuss other taboos such as sex and religion.

“There’s a social norm that says you don’t talk about your finances to other people. It doesn’t make any sense but that’s what we do, and that norm is a strong driver of behaviour,’’ he said.

“There’s a high level of judgment that we put on how much we earn.’’

MBA Financial Strategists director Darren James said most families and friends were uncomfortable talking about personal finances, and some children could not comprehend the large sums involved with wages and house prices.

“Some parents have a concern if their kids see them as having money around, what that leads to. Money changes people,’’ he said.

Discussions about money should not just be “a flag-waving session’’, but it was a good idea for children to understand their family’s financial situation, Mr James said. “The more you can keep things open, the better off you will be, but only do it if there’s a benefit. MONDAY, AUGUST 6, 2018

“There’s a lot of focus through school education on getting the right career, but the only advice they learn about how to manage money is from their parents. Generally, if parents aren’t good at managing money, you tend to see that flow through.’’

Mr Slade said children did not view their parents in terms of how much money they were earning.

“By not sharing it with your kids you are limiting a lot of learning,’’ he said. “Because we didn’t have parents talking to us we often don’t know how to talk about it with our kids.’’ transparent – it breeds better decision making. with stories about good, bad or funny financial decisions.

yourself and ask the children how they feel about money talk. money conversations about being better rather than criticism. on the family’s long-term stability.

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