A survey reveals recently that a large majority of parents, 86 percent, to be exact, feel compelled and obliged to teach their kids about handling money efficiently and yet many also feel unqualified or not good enough “role models” when it comes to financial responsibility.
Only 28 percent said they felt equipped to teach their kids about “setting goals, saving, smart spending, inflation and diversification” (a strategy designed to minimize risk factors through investments like bonds, stocks and real estate).
Parents said they felt it would be easier to discuss drugs and alcohol with their kids than talking about family finances. For parents, the difficulty of discussing investing is as hard as discussing the birds and the bees or puberty.
This survey by T. Rowe Price, on its third year already, also shares that parents feel they can’t perform the role well based on the following reasons: • Personal knowledge of money • Saving money • Spending money
Stuart Ritter, a dad of three and a financial planner for T. Rowe Price, reassures parents that they shouldn’t be overwhelmed with such a responsibility. Here he shares five helpful tips:
1. Make the most of daily “teachable” moments. Simple activities like going grocery shopping, going through bill statements or planning a family vacation can be simple opportunities to talk about finances.