Parents' Poor Job of Educating Children on Money

In the aftermath of the Great Recession, early financial education is important, yet many parents just aren’t taking the time to teach their children about money, according to a survey by the American Institute of Certified Public Accountants (AICPA).

A third of parents admitted either never talking to their children about money or having just one big talk. According to the survey, children are, on average, 10 years old when the subject is first brought up. Mothers are more likely to talk with children about money at an earlier age.

One of the tips the National Financial Literacy Commission offered on educating children was to repeat often, and yet, according to the survey, just 13% of parents talk daily with their children about financial matters.

“Based on our findings, parents seem more concerned about the politeness of their children than their financial fitness,” Ernie Almonte, CPA, vice chair of the AICPA’s National CPA Financial Literacy Commission, said in a statement.

More than two-thirds (67%) said that they know enough about personal finance to teach their children, but instead are more likely to discuss other topics: the importance of good manners (95%); the benefits of good eating habits (87%); the importance of getting good grades (87%); the dangers of drugs and alcohol (84%); and the risks of smoking (82%).

“Dollars and cents should get the same attention as ‘please’ and ‘thank you’ at home,” Almonte, said. “Financial education builds critical skills that help put life goals within reach and strengthen the economy. Parents must make financial lessons a priority in both conversation and action as early as possible.”