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Your Kids Are Watching Your Money Habits

Poll QuestionIt’s a classic case of monkey see, monkey do.

A new study has found that children are as likely to inherit their parents’ financial skills as they are their eye color.

Now this is a British study, but we see no reason why it wouldn’t apply here as well.

Money Advice Service, a UK-based money management provider, recently polled more than 1,000 British teenagers ages 15 to 17. For the most part, teens’ money habits mirrored their parents’ – especially in regard to saving.

The survey found that 2 in 5 who came from families who saved for emergencies also saved money themselves. But that number was halved for teens from families that lacked a rainy day fund.

The study also found that 50% of teens whose parents were able to pay their bills were able to easily live within their means.

But that dropped to less than a third for teens whose parents weren’t able to make those monthly payments.

An interesting tidbit that we didn’t expect, considering how often teens acknowledge their parents are right about anything: 75% of those polled said they found their parents’ financial advice the most helpful.

They also look for guidance from financial institutions, their friends and their teachers – with the exception of the 1 in 7 who didn’t ask anyone for money help.

“We know our money habits are formed very young, and once formed extremely difficult to shift,” said Caroline Rookes, CEO of the Money Advice Service about the study’s results. “But I am struck by how heavily a young person’s money management habits are influenced by their family’s past and present financial behavior.”

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Did/does your teen model your own saving habits?
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  1. DreamRose311 said:
    on November 5th at 09:23 am

    You should ask the reverse question too, ‘Do you follow your parents’ saving style’