31% of children have admitted they have worried about money, whilst a large number of children are aware of money worries in the household, according to the annual Halifax pocket money survey.
89% of parents admit to worrying about money, with most failing to hide this from their children: 73% of children say that they are aware of their parents’ concerns.
29% of parents admit to borrowing money from someone they know at some point, while 16% of children claims that they have had to do the same. Worryingly, 11% of eight to 11 year olds say they have borrowed money.
In a similar vein, 25% of children have also lent money out, with 30% of these saying the money was lent to their own parents, a 2% increase from the previous year.
Now that financial education is being taught in schools it is hoped that in the future children will be better able to manage their money. However, a year into the new curriculum the survey suggests that it has yet to drive a notable change in young people’s understanding of financial matters, with the data remaining almost unchanged or, in some cases, deteriorating slightly since children were last asked if they knew what certain financial terms meant.
The research confirmed that children felt the school-based delivery might not be the full solution, with 60% of children saying that they would prefer to learn about money from their parents, while 20% thought school was the best place for this.
Giles Martin, head of Halifax Savings, said: “Parents need to be very aware just how much of an impact their own feelings about money can have on their children’s views and habits. Whilst finance is now being taught in schools, children don’t want their mum and dad to take a back seat.
“Talking about money at home can be a great way for children to start building an understanding of the importance of good money management. Pocket money can be a great tool for parents to teach their children the basic life skills of earning, and saving money.”
