Parents don’t talk to kids about money
March 29, 2007 by admin
Filed under News, News-Banking
Many of us have let our banking situation spiral out of control because our parents failed to talk to us about finances.
A new report by the Department for Education and Skills (DfES) highlights that few people aged between 16 and 21 regularly speak with our parents about money.
This has led to a number of negative effects, says the report, with 40 per cent of people in this age group not even knowing what APR means.
In addition, 25 per cent incorrectly believe that store cards offer better value than credit cards and the DfES puts this down to a lack of parental guidance.
One in three admitted that they do not discuss finances with their children and this is despite 83 per cent having concerns that their kids are running into debt.
The main reason behind the lack of communication is said to be a fear of appearing to be a nag (48 per cent), while many are put off by their child’s nonchalant attitude towards money (22 per cent).
The DfES is trying to tackle this by launching Talking Money, a campaign designed to promote financial conversations between children and their parents.
“While parents are happy to talk with their offspring about socialising, boyfriends and girlfriends or getting a job, it would appear that in many families money remains the last taboo subject,” said minister for higher education Bill Rammell.
“Talking Money is designed to raise awareness of the fact that financial help is available to cover the cost of higher education in the form of loans, grants and bursaries.”
