Children asking about money ‘more often’

PARENTS are having the facts of life talk with their children earlier and more often but it’s not the birds and bees they’re discussing — it’s money and personal finance.

Since the recession began, parents say they’ve been broaching the subject more frequently with their offspring and that their children are also more likely to raise it with them.

Almost three-quarters (74%) of children “very often” ask their parents questions relating to money and personal finances, research for National Irish Bank found.

And if they’re becoming more curious about the subject, they’re also become smarter with regular saving now beginning as early as junior infants.

The research surveyed parents of children from junior infants in national school to sixth year in secondary school and revealed that 73% feel that their children’s ability to manage money and personal finances will be a major influence on their future success in life.

Practice apparently makes perfect because, despite the recession, parents are still being generous with pocket money, with younger children from junior infants to first class receiving an average of €16 per month and teenagers from fourth year to sixth year getting €46.

That is a drop on the amounts calculated in previous research by other financial institutions, however.

Up to 90% of parents say they tell their children that they have to be wise about spending because if they make the wrong choice, they won’t be supplemented for an alternative purchase.

Wisdom doesn’t necessarily grow with age, however, as younger children save at least half their pocket money while older children save just under a third, despite up to 90% of parents saying they regularly try to reinforce a savings ethos in their offspring.

Commenting on the findings, Caroline Douglas, senior communications manager at National Irish Bank said: “While financial issues shouldn’t be of explicit importance to children of a young age, our research shows that they’re increasingly becoming more financially aware.

“As children get older they understand more about money and personal finances, so a clear message of general money-management can and should be introduced at a young age.”

The bank has created an educational tool, www.moneyville.ie, aimed at the five to nine age group, to teach basic money management skills. The survey asked parents if they believed money and personal finances should be a fixed part of the school curriculum and 58% agreed.

Ms Douglas said the moneyville.ie initiative was part of the bank’s commitment to the area of financial literacy. “We are currently working on a new product for an older age category which will be launched later this year.”