Are you passing money worries on to your kids?

14 August 2012 09:56:45

Many kids are aware of their parents' money problems.

Childhood should be a time of blissful ignorance about the stresses and strains that come with adulthood. But new research suggests that many of us are unwittingly passing our own concerns about personal finances on to our children. While youngsters should not have to shoulder their parents' money worries, there could be benefits to teaching children about the importance of budgeting and saving at an early age - as long as it is done without causing them undue anxiety.

88% of kids take on parents' concerns
Children as young as eight years of age are aware of their parents' money worries, with some even lending them cash, a survey suggests. Halifax's annual Pocket Money Survey indicates that 88% of youngsters, aged eight to 15, believe their parents are worried about money. And almost three-fifths (58%) of children worry about money themselves.

Kids lending money to adults
Of the 1,132 children who were surveyed by TNS Omnibus on behalf of Halifax, 31% said they had lent money to other people. In most cases youngsters had lent money to friends, but 29% of children who had helped another person out financially admitted they had lent money to their parents.

Early awareness could have benefits
Young children should never have to take on their parents' anxieties, but learning about the need to save and budget effectively at an early age could have benefits in the future. Richard Fearon, head of Halifax Savings, observed: "By introducing positive saving and spending practices from an early age, children can get into habits that will help them to manage their money as they grow up and understand the benefits of saving in both the long and short term."

Parents who are worried about money and do not want their children to experience the same problems in the future may want to sit their kids down and talk to them about saving. By choosing a children's saving account together, such as a tax-free junior ISA, saving can become a fun and rewarding activity that will set your kids up for later life.

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