… Nor do they provide a financial education and instill negative behaviorsA new study from National Financial Educators Council, Parents & Children Money Survey, looks at the ‘state of self sufficiency’ in financial education. Read the full report here.
Jun 13, 2019, LAS VEGAS, June 13, 2019 /PRNewswire/ — Parents play an important role in preparing their children toward self-sufficiency and helping them establish a firm financial foundation. The latest National Financial Educators Council’s surveys demonstrate that most parents haven’t taught their children enough about money, don’t help them establish the financial systems they need, and often mold negative financial behaviors.
The National Financial Educators Council conducts polls, surveys, and research to better understand the influence parents have on their children’s financial development. In the latest survey, 1208 people across the United States were asked about the influence on their parents on their financial situation.
Two questions were asked:
- “Rate the types of financial habits and behaviors you picked up from your parents.” The results: 52.9% responded very positive or somewhat positive. 47.1% responded neutral, somewhat negative or very negative.
- “Rate how well you feel your parents prepared you for the financial realities of living on your own.”
The results: 47% responded very prepared or somewhat prepared. 53% responded neutral, somewhat unprepared or very unprepared. 19.5% selected very unprepared.
Understanding ‘Childhood Influencers’
Childhood influencers are often the root causes of an individual’s financial situation. People’s upbringing affects their financial situations and the challenges they face as adults. Parents are among the top financial influencers on a child’s life; yet the data shows that most parents need help to better prepare their children for the financial realities of life.
These latest published surveys align with the survey the NFEC published last month where 1,200 people from around the country were asked, “Which parent taught you the most about money and personal finance?” A proportion of 28.1% of respondents selected “Mother,” while 24% selected “Father.” Although mothers scored higher in teaching personal finance lessons to their children than did fathers, it’s also notable that the top answer was “Neither,” with 47.9% of respondents choosing this option.
One of the pillars of the National Financial Educators Council’s advocacy is to encourage parents to take an active role in their children’s financial education and help them mold positive financial behaviors. “It’s important that parents understand the benefits of teaching personal finance to their children. Those that fail to instill positive financial behaviors or provide them access to quality personal finance classes can expect to raise children that are not self-sufficient,” states Vince Shorb, NFEC CEO.
The NFEC’s research and advocacy are focused on 5 central areas where parents play an important role in the development of their children and helping them work toward financial self-sufficiency. These areas include research exploring the financial situations into which children are born, how financial behaviors develop, how parents shape financial sentiment, the financial systems youth have in place, and the financial education young people receive.
View complete survey results at here.
The National Financial Educators Council is a social enterprise organization committed to improving financial literacy among the global community. The NFEC develops tools, resources, and training to help organizations and individuals share financial literacy messages at the community level. The NFEC’s commitment to conducting financial literacy research to gain a deeper understanding of personal finance topics helps the industry obtain data and professional opinions about this important subject matter. This data has been used to develop financial coach certification programs, financial education instructor programs and comprehensive lesson plans for all ages.