News You Can Use: A Better Gift for your Children
According to T. Rowe Price’s 2016 “Parents, Kids, and Money” survey, parents commonly overspend on their children. This year’s survey of just over 1,000 parents of children aged 8-14 found that:
- 46% of parents have gone into debt to purchase something their kids wanted
- 57% confessed to spending too much on things their kids don’t need
- 58% worry about spoiling their kids
- 57% acknowledge the expectations of their children that they will buy what their kids want.
Despite parents’ concerns over their children’s relationships with money,
- 71% admitted to reluctance to discussing family finances with their children
- Only 44% said that they take advantage of teachable moments to discuss finances with their children.
Of course parents want their kids to be happy. But too often, parents are choosing the “instant gratification” path to a happiness for their children that is fleeting, sometimes even endangering their own financial security in the process.
Perhaps a better gift for parents to give their children is the Biblical and practical wisdom to handle finances with confidence. According to the survey, children of parents who discuss financial topics with them at least once a week are nearly twice as likely to feel smart about money than children whose parents do not regularly discuss finances with them (68% to 36%).
With the cost of college education increasing significantly faster than the overall rate of inflation and the increasing burden of student loan debt on young adults, giving kids the understanding and confidence to handle money wisely while they’re young may well be one of the best gifts parents can give.
Statistics in this article taken from https://corporate.troweprice.com/Money-Confident-Kids/Site/Media/News/Articles/trp-parents-show-no-reluctance-to-overspend, accessed on October 8, 2016.