Many parents focus on restricting spending rather than saving. More than half encourage their children to save pocket money for purchases, which helps instil some appreciation for savings, but the concept is built on purchases and is not ideal to foster good long-term savings habits.
According to research conducted by investment app Raiz Invest, about 40 per cent of adults surveyed believed that their own parents could have done more to teach them good financial habits.
Raiz managing director George Lucas says the data indicate the importance of starting early and talking openly about money with kids.
“It’s common for Australians to focus on expenditures, which are important. But investing and finding the best rates for savings are also important,” Lucas said.
“Many consumers are unaware of the interest rate they’re earning on their bank savings, and they often lack practical tools for investing,” he says. “They are unaware of the best options for protecting and growing their income.”
The research revealed that three out of five respondents believe that parents are responsible for educating their children about money but they also want schools to take a bigger role.
Almost 75 per cent say schools are not doing enough to equip students with the financial skills they will need as an adult.
A big part of the problem is that children’s view of money is skewed by the fact that they don’t often associate purchases with money in an age of online shopping,…