One in four parents feel unable to talk to children about finances, poll shows

More than a quarter of parents do not feel equipped to talk to their children about money, a poll has found.

The primary reasons are that they don’t feel confident with their own finances or find it hard to explain in a way their children will understand.

A study of 2,000 adults with children aged up to 17 found 97 per cent thought it was important to teach their kids about money, but are unsure how — and when — they should start to introduce it.

The average age that parents feel able to introduce the subject of money with their children is five years old.

However, the study by M&S Bank found 38 per cent said they didn’t know what age their child should be when they approach the concept of money.

And only a third (34 per cent) had spoken to their child about money before they turned five years old.

The research found three in 10 (29 per cent) are hesitant to talk about money with their kids because they don’t feel they would be a good teacher.

While 28 per cent find it difficult to simplify the topic, and don’t feel like they are very good with money themselves (28 per cent).

And more than a third (35 per cent) struggle to explain things in a way their child would understand.

Psychologist Emma Kenny said: “It’s important that as parents, we take the time to talk confidently and openly with our children about money, and from an early age.

“The M&S Bank research found that the most common age to start introducing money into conversations is from age five.

“But parents can do this through play even earlier, which can really help to give meaning to your conversations, whenever the time is right for you.

“Early conversations can really help your children to not only understand the concept and value of money, but also help to set a positive and confident financial foundation, that will benefit them in later life.”

The study also revealed the tactics parents are using to help them teach their children about finances, with a quarter (25 per cent) ‘playing shop’ with their child from the age of three.

A fifth (19 per cent) found introducing pocket money a useful lesson from the age of five, and 22 per cent used counting money, also from the age of five.

The research also found nearly half (44 per cent) believe taking their child to the shops specifically to help them learn how money works is an effective teaching method.

But while 80 per cent of parents said they have discussed money with their children in some capacity, 60 per cent felt they should be doing more to help their children learn, and from an earlier age.

Among the reasons parents feel it’s important to talk about money included that it prepares children for the future (75 per cent), because it’s a part of life (70 per cent) and to help them understand savings (62 per cent).

It also emerged some of the biggest worries parents have for their children’s financial future is whether they will be able to support themselves financially (55 per cent), if they will be able to build their own savings (46 per cent) and if they will be confident with money (35 per cent).

With the world moving towards a more cashless society, 35 per cent of parents were also concerned about helping their child understand the value of money in a world of digital payments.

And more than a third (36 per cent) of parents would like additional support on how to speak to their children about money and finances, particularly when it comes to answering tough questions.

SWNS