As shocking as that sounds, it’s true – and it gets worse.
According to T. Rowe Price’s 2014 Parents, Kids & Money Survey 58 percent of boys said “their parents talk about setting financial goals” compared to 50 percent of girls. Worse yet, those conversations lead to – “45 percent of boys say they are very or extremely smart about money, while only 38 percent of girls say the same.”
“It’s shocking that parents don’t treat their kids the same when it comes to financial issues,” sighs Gary Herman, president of Consolidated Credit. “Reading this survey it becomes abundantly clear that more girls grow up without the proper education, guidance and confidence about money compared to boys.”
The study reveals more about the mindset of parents when it comes to the gender of their children.
- Boys comprehend better: 80 percent of parents with a single boy believe he comprehends “the value of a dollar.” Only 69 percent of parents with a single girl feel the same.
- Credit cards: More boys get credit cards than girls – 12 percent to 6 percent.
- College funds: 53 percent of boys say “their parents are saving for their education” compared to 42 percent of girls.
Judith Ward, CFP, senior financial planner at T. Rowe Price says, “Boys and girls should have the same opportunities to learn about money matters at home so they can grow into financially savvy adults. If you want to invest in your kids’ futures, start by talking to them about money matters weekly.”
Tips for talking to your kids about money
Herman has experience bringing up two children – a boy and a girl. “My wife and I always included our kids equally in conversations about money. We knew they both needed the proper guidance or they could make drastic errors as adults, which might cost them financially and emotionally,” says Herman.
Use these tips to get your kids involved in the world of finances.
- Budget: Use this handy guide on how to build a kid’s budget. It’s fun, educational and may inspire them to save more.
- Online tools: Take advantage of free online publications such as this one regarding money issues and kids.
- Wants and needs: Talk to your kids about the difference – they need new sneakers, which can cost $65, but they want the cool $100 pair. Big difference.
- Be a role model: Don’t spend foolishly yourself. When you’re making the tough decisions about money, point them out to your kids.
- Saving, saving, saving: Make certain your kids understand the importance of saving money.
One other valuable finding from this survey reflects those thoughts about “saving.” Sixty percent of children whose parents spoke about money regularly, and about “setting financial goals” identified themselves as “savers” versus “spenders.”