What parents teach their children doesn’t go “beyond the piggy bank”
Each week, Consolidated Credit searches for financial research that can help you deal with your debt and budget. This week…
The interesting study
What parents are teaching their children about dollars might not make a lot of sense. A new study from a U.S. bank says children learn some valuable money lessons at home, but not the biggest ones. They’re just not “comfortable teaching them about important topics such as credit and saving for the future.”
The big result
While 77 percent of parents told U.S. Bank pollsters they’re comfortable teaching about saving in general” and 66 percent also taught their children about budgeting their money, that’s as far as the financial education goes.
“Everything kids know about money, they learn from their parents,” says Robyn Gilson, U.S. Bank’s coach for student financial education. “The problem is, many parents are not confident teaching beyond piggy bank saving and basic budgeting – missing important topics like credit and saving for the future.”
The depressing details
Gilson surmises one reason parents don’t teach about the pros and cons of credit is that they simply don’t understand the topic – even though it will affect their children deeply as adults, from student loans to mortgages. The poll reported…
Many of the parents surveyed who are talking about credit may be misinformed themselves. More than half of the parents incorrectly believe their bank balance affects their credit score (51 percent) and that using checks/debit cards can help build credit (52 percent).
What parents can do
Thankfully, learning about credit and debt doesn’t’ require a college course. Consolidated Credit offers a simple No-Hassle Credit Card Debt Elimination Guide, as well as a special report called Do You Need Credit Help? and another for Saving Money & Long-Term Saving Strategies. However, knowledge isn’t enough, says Consolidated Credit president Gary Herman.
“If your family is struggling with credit card debt, the best lesson you can impart is to get rid of it and live debt-free,” Herman says. “You’ll not only teach your children a valuable lesson by showing instead of telling, you’ll also have extra money to spend on their well-being because you won’t be paying high interest rates and fees.”
If your children are growing up in a family with crushing debt, achieve financial freedom before they leave the house. Herman suggests you call Consolidated Credit at (844) 276-1544 for a free debt analysis from a certified credit counselor. You can get a financial plan that will help you now – and your children for the rest of their lives.