A recent poll has revealed that a whopping 85% of parents are concerned about passing on poor financial advice to their children.
The survey, which quizzed 2,000 parents with children aged between 10 and 20, discovered that a significant number of parents lack confidence in their own financial skills, leading them to avoid discussing money matters entirely.
A third of parents confess to feeling unsure about investing and an equal number feel similar about budgeting, and managing their credit score. Consequently, they feel ill-prepared to explain these concepts to their children.
Reflecting on their own experiences three quarters of parents wish they had received more financial education when they were younger, and as a result are keen to give their children the best possible start in life financially.
However, 41% still avoid talking about past financial mistakes with their kids. With over two thirds suggesting financial literacy should be taught in schools rather than at home.
To tackle this problem, Skipton Building Society has teamed up with TV presenter and finance expert Tayo Oguntonade to offer advice on how parents can start these conversations.
Two-thirds of parents try to involve their children in discussions about family finances, but over half are concerned that discussing money issues could lead to financial anxiety.
Tayo stresses that children often view their parents as authority figures, and while it’s natural for parents to want to protect them from their own financial blunders, avoiding these discussions can ultimately cause more damage than good.
According to him, having conversations about money at a young age equips children with practical skills and a solid understanding of finances, ultimately leading to a more secure financial future.
Helen McGinty, head of financial advice at Skipton Building Society, stated: “The economic landscape is always evolving, which is why it’s crucial for both parents and children to embrace continuous learning about finances.”
“By seeking proper financial advice, parents can make informed decisions and pass down valuable knowledge to their children. This not only helps families navigate challenges together but also empowers the next generation to build a stronger, more secure financial future.”
