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