Hands-on best for teaching kids money smarts
Media Release -
- Most parents say the home is the best place to teach children about money
- Only a fraction of parents say schools do a good job teaching children to be money smart
- Only 1 in 10 believe financial literacy comes with age
Australian parents believe home is the best place to teach children about money, by setting the right example and encouraging children to earn to learn.
A survey by Australia’s largest life insurer TAL found just 4% of parents look to schools to teach children how to be smart with money.
The majority surveyed (62%) believe in encouraging children to earn money outside of the home via part time work as the best way to increase their financial literacy.
The next most popular choice (61%) was showing them by setting an example, followed by teaching children to be entrepreneurial (33%). Younger parents feel this most strongly with almost half (47%) saying children should be taught to be entrepreneurial.
TAL Group CEO Jim Minto said: “The results show there is no single right way to teach children the value and importance of money. But what is clear and encouraging from the results is the majority of parents don’t believe in a hands-off approach.”
The survey found just 10% of parents believed financial literacy comes automatically with time. Almost double the number of males (13%) believed this compared to females (7%).
“What is important is for Australians to receive the right information about money at the right time - whether it is saving for your first home, protecting your assets and income through life insurance or investing for the future.”
“Building and protecting your financial wellbeing is not something to be left to chance.”
Mr Minto said protecting wealth, including one’s future income and dreams, is just as important as building and growing it.
“Many of us remember the golden rules we learned from our parents, such as ‘Save first. Spend Second’ or the power of compound interest,” he said.
“We encourage parents to have the conversations and help their children take the steps necessary to become financially literate.”
Australians can use the free, online Australian Financial Protection Quiz to assess their financial protection needs and compare themselves to national demographics.
Best way to teach financial acumen to children (by age group)
|
|
Gen pop |
Male |
Female |
18-34 GenY |
35-49 GenX |
50-69 Baby Boomer |
|
Encourage them to earn money/get a part time job outside of helping at home |
62% |
60% |
64% |
55% |
61% |
70% |
|
Show them by setting an example to follow in how you manage money |
61% |
61% |
61% |
55% |
60% |
68% |
|
Teach them to be entrepreneurial* and earn money for themselves |
33% |
37% |
30% |
36% |
26% |
37% |
|
Just let them enjoy childhood and financial acumen will come in time |
10% |
13% |
7% |
13% |
8% |
8% |
|
School does a good job in teaching how to look after money/be smart with money |
4% |
4% |
3% |
6% |
2% |
2% |
Notes to editors
This survey was undertaken online by Galaxy Research with 1,266 Australians, from the ages of 18–69 years old. Age, gender and region quotas were applied to the same and the dataset was weighted to national proportions. State based figures available upon request.
* Entrepreneurial in this context refers to being enterprising and actively considering the best use of one’s money.
Further information:
Stuart Snell 02 9448 9879/0417 921 235 stuart.snell@tal.com.au
About TAL: The specialist voice of life insurance in Australia
TAL is Australia’s largest life insurance company with leading competitive offerings in each of its core distribution channels: direct to customers; through financial advisers; and via group and workplace superannuation schemes. With in-force premiums of $2.2 billion, TAL provides more life insurance solutions to Australians than any other insurer. TAL is owned by The Dai-ichi Life Insurance Company, Limited, one of Japan’s largest life insurers.