Swimming lessons, fencing, English, piano, violin, acting… it's amazing how much resources and energy parents put into preparing their children for a life full of opportunities. Yet they systematically forget something: teaching the basics of money management for example, a fundamental aspect for laying the foundations for a stable financial future.
So let's go back to talking about financial education, after all it is a topic that is particularly close to our hearts at AdviseOnly. But don't worry, this time we don't want to rage on the poor preparation of the Italians: instead we will tell you how they do in the United States (not much better than us, apparently).
The starting point comes from T. Rowe Price, who recently published the eighth edition of the annual survey "Parents, kids and money", based on a sample of 1.086 parents of children aged between 8 and 14 and as many teenagers (they children) between 8 and 14 years.
A DELICATE SUBJECT
Based on the results of the study, which analyzed the financial knowledge, behavior and attitudes of adults and children, money is still perceived in some respects as a taboo subject.
71% of those interviewed said they were reluctant to talk about the economy to children (37% say they are very or extremely reluctant) and 13% have never touched on any financial issue with them. Yet, the study notes, comparing the answers of adults and children, it emerges that among young people the percentage of those who consider themselves "experts" in economic matters is higher for the children of those who say they deal with financial topics at least once a week.
How reluctant do you feel to discuss financial issues with your children?
Source: T. Rowe Price
In any case, the study points out, parents tend to talk about economic matters more with sons than with daughters, arguing that the latter show greater interest and in any case need more help with money.
Do you talk about these topics more with your sons or daughters?
Source: T. Rowe Price
Why?
Source: T. Rowe Price
Furthermore, 57% of the parents interviewed do not feel comfortable when having a conversation with their children on the family economic situation: 36% declare that they feel extremely or very uncomfortable and another 22% believe that the subject is somewhat thorny – the attitude is more or less the same as when one finds oneself talking to the little ones about death. And children realize this, just consider that 35% say that parents don't like to talk about money.
How uncomfortable do you feel talking to your children about the following topics?
Source: T. Rowe Price
As for financial education at home, 44% of parents declare that they have never spoken to their children about the value of long-term investments or the volatility of the financial markets and have never shown them a balance sheet. According to another recent study conducted by RBC Wealth Management USA and City National Bank, almost 90% of Americans believe that the financial education of young people is a task of the school: 15% think that the subject should be introduced already in elementary school, while 72% believe the right time to start talking about money is in middle or high school.
Which of the following things have you done?
Source: T. Rowe Price
It must be said that the situation is slowly improving, or so it seems: the parents of the millennial generation in fact, the study reveals, talk more often about finance to their children than those of Generation X and the Baby Boombers (specifically , 43% talk about it more than once a week versus, respectively, 32% and 21% of older parents).
