Parents fail to educate kids on finance due to lack of knowledge themselves

21/07/2011

Parents lack basic financial knowledge despite most believing they should be the ones to educate their children about the matter.

More than eight out of ten parents believe they should be teaching kids about money, despite half of them not understanding basic financial terms.

These figures come from a study commissioned by Capital One’s ‘Credit Made Clearer’ initiative, which also revealed many parents did not understand what APR or PPI stand for.

Nevertheless, 65 per cent of UK parents say that they intend to, or have already, had a financial education chat with their children.

Brian Cole, managing director of Capital One, says: “It’s encouraging to see that during difficult financial times, financial education is high on parents’ agenda. However, it’s clear that finance is a topic that some parents may need help on.”

With an increasingly complicated financial world the debate regarding children’s education in finance has been a long one.

In April 2010, a website called financialeducationpetition.com petitioned for more financial education in schools and gained 30,872 signatures, which were then passed on to Michael Gove, the Education Secretary, and both Prime Minister David Cameron and Deputy Prime Minister Nick Clegg in May.

However, with more parents facing debt and student debts set to rise, the issue is still a very prevalent one that is currently up parents.

Andrew Swallow, from IFA Swallow Financial Planning, told Mind Full Money: "Although I can't say it worked with all of my children the best saving tip I ever tried to teach them was to WAIT for things.

"Many a time they would want the latest game or CD and we would ask if they had enough money from their pocket money or Christmas / Birthday money and many was the time when they would have to wait until their next "pay day" to get the item they desired. It was hell for the parents but it did teach them to wait (if not save in advance!)"

Tags; Debt Management and Banking, Housing Debt and Bills, Young Family Finances,

• Share
• 
• 
• Store
• 
• Follow
•