Parents are more likely to talk to their children about financial education than they are to discuss sex, according to new research.
The study from credit card provider Capital One reveals that 81% of parents think children should learn about finance directly from them and that 65% plan to sit down, or have already sat down, with their children to teach them about managing their money.
This figure is just ahead of the 63% who aim to talk to their children about sex, or have already given them sex education at home.
Worrying lack of financial knowledge
Which? credit expert Martyn Saville commented: ‘It’s great that so many parents realise the importance of financial education. The best solution is for children to receive education both at home and at school.
‘What is rather worrying though, is that the same research found that 43% of parents don’t know what basic terms like ‘APR’ (Annual Percentage Rate) or ‘PPI’ (Payment Protection Insurance) stand for, while 22% believe that children should learn about personal finance from TV programmes and soaps.
‘There are some great resources out there to help parents explain money issues to their kids. Several schemes, including Capital One’s own Credit Made Clearer programme and MBNA’s Talking Numbers scheme, are helping to raise awareness of finance amongst children.
‘There are also other excellent services such as MyBnk, a social enterprise working to build young people’s knowledge, skills and confidence in managing their money. Parents can also make use of the excellent resources produced by the Personal Finance Education Group (PFEG), the government-funded Money Advice Service website and, of course, the extensive financial guides on the Which? website itself.
‘Which? members can also call the free Which? Money Helpline with any personal finance questions.’
- What’s your view on financial education. Have your say with Which? Conversation as Nick Cheek asks Who’s to blame for our lack of financial knowledge?
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