GOLDEN RULES

The Napier Mail - - CONVERSATIONS -

For many young adults, mum and dad are the fount of fi­nan­cial knowl­edge.

Massey Univer­sity has a longterm study un­der­way track­ing how a co­hort of young adults is pick­ing up their fi­nan­cial ca­pa­bil­i­ties.

The young adults be­ing tracked are 22-28 years old now, so the in­flu­ence of mum and dad is wan­ing a bit com­pared to 2012, when the study be­gan.

De­spite that half say they learnt al­most every­thing they picked up about money in the last five years from their folks.

We’ve heard a lot in re­cent years about the Bank of Mum and Dad be­ing the only way young­sters can af­ford to buy a house.

But it turns out the Bank of Knowl­edge mum and dad pos­sess is also vi­tal for young peo­ple mak­ing their way.

The young­sters do have nag­ging doubts about whether their par­ents’ fi­nan­cial ad­vice is en­tirely ap­pli­ca­ble for their

Par­ents are young­sters’ best source of money wis­dom

Par­ents need to lis­ten, as well as ad­vise

They also need to keep learn­ing them­selves

gen­er­a­tion, how­ever.

I can un­der­stand that. The young have al­ways had an ex­ag­ger­ated idea of how badly their par­ents were out of touch with the mod­ern world.

But the re­port from the Fin-Ed Cen­tre also con­tains a whole host of non-parental money wis­dom and tips from the 22-28 year-olds them­selves.

If it’s hard to take ad­vice from mum and dad, these may be voices that are more ac­cept­able to the young.

Many can be ex­pressed as per­cent­ages, and pro­vide in­sights other 22-28 year-olds might want to learn from.

Why wouldn’t a young per­son seek to be among the 32 per cent of their own peers who read to in­crease their fi­nan­cial knowl­edge, or the 65 per cent who bud­get and track spend­ing.

What about the 80 per cent do not get cash ad­vances on their credit cards, or the 57 per cent who have spent time think­ing about fi­nan­cial goals?

Then there are the very wise 67 per cent, who be­lieve it is bet­ter to pur­chase from sav­ings rather than buy on credit.

Some of the tips are pre­sented in words, not num­bers.

Take this credit card wis­dom: ‘‘I have a credit card now, but I pay that off ev­ery month. I use it for the perks of get­ting

Air­points.’’

Or this method for curb­ing im­pulse spend­ing: ‘‘I ac­tu­ally leave my credit card at home now. I leave it at home and if I want to buy some­thing I think about it, wait two days and if I still want it, buy it.’’

I don’t know about you, but I reckon that all sounds un­can­nily like the kind of stuff their par­ents might say.

One trou­bling find­ing was that the women among the co­hort have been pick­ing up fi­nan­cial skills more slowly than the men, sig­nif­i­cantly more slowly.

This is wor­ry­ing, es­pe­cially as there is a strong ar­gu­ment than on av­er­age women have faced a few more fi­nan­cial head­winds in life than men. Par­ents, this is some­thing you need to be aware of. Don’t stint on talk­ing to your girl chil­dren about money.

123RF

No­body re­ally likes be­ing given ad­vice, but it can some­times be eas­ier to take from peers than par­ents.

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