Have you ever raided your child’s piggy bank or bank account?
A whopping 38 per cent of Australian parents have admitted to doing this in order to pay for urgent expenses, according to new research.
And 29 per cent have lied to their children about money, the research by the Financial Planning Association (FPA) of Australia shows.
The findings are part of the association’s Share the Dream: Raising the Invisible-Money Generation national research report into Australian parents of children aged 4-18 years.
These kids were born after the year 2000 and into a world of mostly online transactions or “invisible-money”.
Four “money parent personalities” emerged from the research, based on how often and how comfortable mums and dads are talking about money with their kids.
Which personality are you?
● ENGAGERS: Thirty percent find money talk easy and have frequent conversations with their children about money. They are most likely to seek the advice of a financial planner (39% compared to 33% for the overall group). Engagers are also the most generous when it comes to pocket money. The majority (60%) of Engagers’ children know how much one or all of the adults in their household earns, and are notably curious to learn about invisible-money matters like Afterpay and in-game purchases.
● TROOPERS: Nineteen percent fell into this category. They also frequently talk money with their kids, but feel anxious about it. Their teenage children (aged 14 to 18) are more likely to have a job and have more experience making online transactions.
● RELAXED: Twenty-two per cent of parents are comfortable with money talk, but don’t do it very often. They are more likely to be older parents, and have the lowest levels of financial stress and regret in their household.
● AVOIDERS: There are 29% of parents who put off money talk altogether. As a household, they tend to earn less and give less pocket money. Their children are least likely to transact in today’s invisible-money world of making online and phone-based purchases.
FPA CEO Dante De Gori said engagers and troopers showed that the earlier parents started talking about money with their kids the better.
“I’m obviously pleased to see that parents most confident in talking about money are those most likely to have sought the advice of a financial planner at some point — it’s a satisfying testament to our profession,” he added.
You can confirm your money personality by taking a quiz at moneyandlife.com.au/share-the-dream
