Why More Parents Are Talking Money With Toddlers

Why More Parents Are Talking Money With Toddlers

Once upon a time, parents took pains to shield their kids from conversations about serious topics like money.

But with memories of the recession still fresh in their minds, many modern moms and dads are taking a more practical approach to child rearing.

That’s according to a survey from discount website couponcodespro.com, which found that, on average, parents start teaching their kids about money when they’re just three years old.

Learnvest

Get started with a free financial assessment.

In fact, most parents are giving their children hands-on experience with handling finances. Nearly two-thirds of parents with kids between ages four and 12 said they provide an allowance in order to teach the kids about the basics of money management.

When it comes to talking to kids about dollars and cents, most parents are sticking to the basics. Nearly three-quarters of respondents said they’ve spoken to their children about saving in piggy banks; other common topics include working for money, budgeting and finding bargains while shopping for groceries.

Unfortunately, many parents also risk undoing all the valuable money lessons they’ve imparted. As many as 73% of respondents who give their kids an allowance also admitted to buying their kids special treats.

“Sweets and clothes I can understand,” Nick Swan, C.E.O of couponcodespro.com, told Money. “But buying them toys for no reason when they are being given an allowance can backtrack on everything they are trying to teach their children about money.”

The bottom line is: There are no hard and fast rules for raising money-savvy kids. But whether your child is three or 13, it’s never too early (or too late) to start teaching them the value of budgeting and saving.

For starters, check out our secrets for raising financially responsible kids—and be sure to avoid passing on your own bad money habits.

Learnvest

Financial planning made simple.

Get your free financial assessment.

Related Tags

Get the latest in your inbox.

Subscription failed!

You're Now Subscribed!