The kids are all right, says financial literacy poll

This post was originally published on smallbizadvisor.ca.

Parents are doing just fine as financial role models for their kids, says a new survey by ING Direct.

The online study, conducted in July 2013, surveyed both parents and kids aged 11-to-14 on money matters and education. And nearly half of the kids surveyed (44%) gave their parents a “B” when asked whether they’re good financial role models. When asked to grade themselves, 47% of parents surveyed also gave themselves a “B”.

Read: Thanks, mom, for teaching me about money

It’s a good thing parents are stepping up to the task as the study shows kids are eager to learn even more about money from their parents.

The kids surveyed wished their parents would talk with them more often about how banks/credit cards work (38%), what things cost and why (36%), and how to save (27%) and manage (26%) money.

“As a parent, I’m aware of the importance of a well-rounded education for children, which includes lessons about financial health,” says Peter Aceto, CEO and president, ING DIRECT.

He adds, “Teaching our children about money doesn’t have to be a complicated. Using everyday situations, like shopping for back-to-school items or a trip to the grocery store, is an easy way to introduce kids to the concepts of budgeting, spending and saving.”

One key reason to talk to kids about money, of course, is to raise financially successful adults. The ING survey sheds some light on what kids and parents think this means.

Read: Youth reveal money fears through poetry

In order to become a financially successful adult, the kids surveyed believe it’s important to:

• save money (64%);
• have an education (55%);
• work hard (54%); and
• be equipped with financial knowledge (24%).

Parents assigned a similar order, though they prioritized education (65%) over saving money (60%). Those were followed by working hard (47%) and acquiring financial knowledge (44%).

“There is clearly a curiosity in the home about subjects surrounding money,” says Aceto. “It’s important for parents to start talking to their children about finances from a young age and continue those conversations into adulthood.”

Luckily, most parents believe they’re up to the job. About 95% of the parents surveyed say they feel prepared to teach their children about financial basics.

Their best advice? Most say children should learn to live within their means (53%), set savings goals (13%) and spend wisely (14%).

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