Photo: Flickr / Nicholas Erwin
Parents find it easier to talk to their kids about smoking, drugs, and bullying than to talk about money, according to a new T. Rowe Price survey.And what’s even more troubling is the number of parents that don’t even make an effort in the first place.
One-third said they avoid talking to their kids about finances altogether, while 60 per cent said they’re prepared enough to handle it.
The survey also suggests parents aren’t setting the best example. Half are regularly saving and investing their money, while only 43 per cent have a savings goal.
But not introducing children to money at a young age is basically tantamount to not teaching them the ABC’s of reading, Lori Mackey of Propserity4Kids, Inc. told Your Money.
“Parents don’t expose their children to any concept of money, but expect them to go out and manage a checkbook and get a job and not go into debt,” she said.
The key may be finding the right time to do it. Jill Shipley, director of next generation education for GenSpring Family Offices, offers a few suggestions:
- At the ATM, or during a trip to the mall, talk to kids about responsible use of cash and credit.
- While watching television, discuss the stereotype of wealth depicted in some of the popular shows and how your family’s values differ.
- Spend a Saturday at the local food bank to reinforce the obligation the fortunate have to give to those who are less fortunate.
If you’re still feeling nervous about ‘the talk’, another option is to hire a financial coach who specialises in talking to kids and teens. Of course, it won’t come at a cheap price—sessions run from about $60 to $150 per hour, according to CreditCards.com.