According to a new survey from investment firm T. Rowe Price, parents have more money talks with their sons than with their daughters.
The study included children ages 8 to 14 and its results were rather surprising. Fifty-eight percent of boys said their parents talked to them about goal setting, a number that’s nearly 10 percent more than that of girls. This coupled with the fact the two-thirds of children whose parents talk about money often said they felt smart about money as compared to only 37 percent of children with parents who don’t talk about finances often might prove that parents should be a little more proactive when discussing money matters with their kids.
Not only do topics such as these prepare your children for success in areas such as math and economics, but it also is foundational in their long-term financial practices and success. This is proven with another result of the survey, which says that children are significantly more likely to save for college if they’ve talked about it with their parents.
Moms and dads weighed in on the money topic too and their results, too, suggest a difference in the way they handle money matters with their sons and daughters with 80 percent of single-child boy parents saying they believe their sons understand the value of a dollar versus only 69 percent of single-child girl parents being able to say the same about their daughters. This study suggests that many parents use financial topics as teachable moments for their male children, but not so much when it comes to their girls.
T. Rowe Senior Financial Planner, Judith Ward says talking about money with your kids, no matter what their gender, is synonymous with investing in their future, “If you want to invest in your kids’ futures, start by talking to them about money weekly,” she says. She continues, “The correlation between the frequency of conversations about money and kids’ smart financial decision-making is undeniable.”
The “money made simple” website, Moneychutney.com gives parents 5 ways to discuss and initiate savings with your children
Start them young: The earlier, the better for this fundamental, beneficial habit.
Give your child a piggy bank: And they suggest doing so around 3-4 years old. This gets children in the habit of saving small amounts early on in life.
Reward your child for saving with a treat: No, the treat doesn’t have to be money. Give your child a new toy or a special prize. Get creative while reinforcing the importance of saving.
Set goals: Give them a savings goal and monitor their progress. Does he or she want to buy a new bike? Make them save up for it. Giving them something to look forward to in the end brings some excitement to the savings process.
Teach them the importance: Don’t just force saving on your children. Teach them the benefits of having extra money in the bank for emergencies, investments and other major financial obligations.
Mamas, do you currently talk to your children about finances? How important do you feel money discussions between parents and their children are?