New Survey Reveals Parents Are Not Teaching Kids How to Manage Money — Dollars and Sense
This might not come as any surprise to a lot of you, but most teenagers do not have any idea what they are doing when it comes to the world of finances.
Unfortunately, new research suggests that they blame the parents for not properly teaching them how to manage it.
According to a new study, while nearly 17 percent of teens between the ages of 12 and 17 claim to know how to manage money, almost a quarter of them do not understand the difference between debit cards and credit cards.
The majority of teens who participated in the survey say that when it comes to finances, learning how to budget and save money is one their primary concerns. However, most report that the only reason they are not more knowledgeable on the subject is due to their parents not really helping them understand it.
In fact, depending on their age, anywhere between 10-15 percent of teens claim that no one in their household helps them manage their money.
Still, the majority of parents feel as if they are good financial role models -- 31 percent -- while 21 percent say they lie somewhere in realm of fair to poor.
"A parent's role in setting a financial example for their children is critical," said Jim Kelly, head of direct bank, ING Direct Bank, which sponsored the survey along with Capital One. "Yet many parents feel unprepared to set an example."
Although many teens claim they are not receiving the proper financial education from dear old mom and dad, many are attempting to get their education the old fashion way -- by getting jobs.
Teenage girls are the most ambitious, with nearly half of them already reporting having jobs as a means for earning outside income, while 38 percent of the boys say they too work in order to have their own money.
Experts suggest that parents can teach their children more about the value of money by doing things like showing them how to comparison shop at the grocery store, teaching them how to put money back for luxury items such as video games and movies, and by speaking candidly about your own financial successes and mishaps.