Here’s Why We Should be Teaching Kids About Money During the Pandemic
Truthful discussions with kids now can impact financial success later
The effects of the pandemic so far have been long-reaching. As our children took to distance learning, parents faced new challenges, too. Financial concerns, layoffs and furloughs have become the new normal for many. As parents, we hope to shelter our children from many of these worries. But are we doing more harm than good?
Personal Capital surveyed 1,000 people to find out how our financial habits affect our children’s own behaviors in the future. Their findings paint an important and particularly timely picture; being open with our children during times of financial crisis can help them make better financial decisions later in life. And if there’s any silver lining worth appreciating, it’s one that can help our children.
While we may be struggling to help our children navigate a new means of learning and living, the most long-lasting lessons may be the ones you’re teaching them in your own home. Survey findings showed that a shockingly high percentage of adults never had financial discussions with their parents, and these adults were significantly more likely to be in poor financial standing later in life.
Respondents whose parents did talk to them about financial crises or recessions were more likely (72%) to be in good financial standing now than those whose parents did not (65%). They're also more likely to have emergency funds.
- 1 in 6 people say their parents never talked to them about their financial standing -- good or bad.
- 46.2% of people say they felt stressed as a kid due to their parents' financial decisions, and nearly 2 in 3 people in bad financial standing said their parents influenced their financial habits.
- Only 40% of people say their parents talked to them about potential financial crises or recessions.
Being open while maintaining reassurance about the current financial difficulties we're all experiencing could serve children in the future when they are making their own financial choices.