Three in five Australian parents (62%) believe their children's generation will be financially worse off than their own generation. Alarmingly, an even higher proportion (68%) are reluctant to some degree to speak to their children about money-often because they are stressed about their own financial situation, according to a report released by the Financial Planning Association (FPA) of Australia .
The report titled “Share the Dream” also reveals two thirds of Australian parents (66%) believe digital money is making it harder for children to grasp the value of real money, and that they struggle to teach them.
For nearly half of parents who are reluctant, their hesitance is driven by a fear that they don’t want their children to worry about money (32%).
Parents who are stressed about their own financial situation are also reluctant to discuss money matters with their children. This is concerning given that 82% of Australian parents report some level of financial stress. More than half (51%) declare themselves to be very or somewhat stressed about their current financial situation.
Invisible money generation
The FPA identifies a new generation of children and teenagers born since the year 2000 it calls the “Invisible-Money Generation”— those aged 18 years and below for whom money is often unseen in the form of online
transactions, credit and debit cards, and ‘tap and go’.
The report shows this Invisible-Money Generation is forcing a tipping point in national spending habits: 47% of 14-18 year olds are nearly as likely to take an interest in online purchases, as they are to spend physical banknotes and coins at the shop, for example.
Other key findings in the report are:
- Talking to children about money better prepares them for the future. Alarmingly, 66% of parents show some reluctance to speak with their kids about money.
- Parents who seek or have sought advice from a financial planner in the past were more likely to have regular chats with their kids about money than those who do not (61% vs 43%).
- Parents in New South Wales and those in regional and remote areas are most reluctant to discuss money with their children for fear their kids will worry.
- Mothers (53%) are more likely to have regular chats with their children about money than fathers (45%).
- Children with a paid job are more digital money savvy: 84% make online purchases for themselves or their family versus 56% of those without a job.
The report is based on research from The Curious Co obtained through a national quantitative survey of 1,003 Australian parents who have children aged between four and 18. The research was conducted between 13-25 June 2018.