10th July 2015
The financial crisis has left a lasting legacy on the nation’s children, with a third of them saying they worry about money.
Research by Halifax shows 31% of children said they worried about money and three-quarters are aware when their parents have money worries.
Nine out of 10 parents said they worry about money and most are failing to hide this from their children.
And it is not just worries that are filtering down to children financial habits are too. Almost a third, 29%, of parents admit to borrowing money from someone they know at some point and one in six children said they do the same. One in 10, eight-to-11 years olds say they have borrowed money.
A quarter of children have also been a lender, with a third of the children saying they loaned money to their own parents – a 2% increase on last year.
While financial education has been on the school curriculum for the past year, it seems to have had any notable change so far in young peoples’ understanding of financial matters.
Children said their school-based delivery of financial education is not the full solution and three in five children said they would prefer to learn about money from their parents.
Giles Martin, head of Halifax savings, said: ‘Parents need to be very aware just how much of an impact their own feelings about money can have on their children’s views and habits. While finance is now being taught in schools, children don’t want their mum and dad to take a backseat.
‘Talking about money at home can be a great way for children to start building an understanding of the importance of good money management. Pocket money can be a great tool for parents to teach their children the basic life skills of earning, and saving money.’