FPA research: parents need to step up with financial literacy
/Recent research from the Financial Planning Association of Australia (FPA) shows that kids with parents who seek financial advice are much more likely to be aware of financial matters. The 'Share the Dream' report looks at Australians born since 2000, the 'invisible money generation' who live in a largely cashless world. The investigation into their world, where tap and go and online transactions is the way money is navigated, looks into these young people's relationship with money.
With about eighty per cent of parents feeling financially stressed, three in five Australian parents believe that their children will be worse off financially than they were. The FPA's report also revealed that when parents sought financial advice, these parent were more likely to have chats about money with their kids, increasing their financial literacy. There was a 20 per cent gap between advised parents talking to their kids about money (61 per cent) and non-advised parents (43 per cent).
Many parents find it difficult to talk to their kids about money, particularly if they are struggling - the world that our kids live in is a different place to their parents growing up, with technology and online methods of transacting.