Hands up who has borrowed money from their kids?
My daughter kept her birthday, Christmas present and pocket money at home, saving it up.
Both my husband and I asked to borrow it when we needed cash and didn’t have time to go to the ATM. One time we forgot to pay her back and she mistook our absentmindedness for not having any money.
Apparently I’m not alone.
Some 38% of Australian parents have borrowed money from their child’s piggy bank or bank account for urgent expenses, according to research released by the Financial Planning Association (FPA) of Australia to mark Financial Planning Week.
The research found that kids are much more engaged with their money than their parents were as children with 69% of parents saying that their kids are more confident about asking questions about money than they were at their age.
Fifty-seven per cent said kids are more financially literate too.
However digital money and the accompanying instant online shopping methods is worrying parents with 66% agreeing that digital money is making it harder for their children to grasp the real value of money.
Some seven in 10 parents are reluctant to speak to their kids about money often because they are stressed about their own financial situation. The research found that particularly parents in remote and regional areas try to shelter their kids from financial stress.
Mothers (53%) lead the way about speaking to their kids about money with regular chats than fathers (45%). Not surprisingly 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.
Pocket money is one of the most important avenues for kids to practice earning, saving and spending money.
The rates of pocket money range from less than $10 per week for young children aged four to eight while tweens (nine to 13) are most likely to be paid between $4 and $19. Older teenagers (14-18) are most likely to receive between $10 and $39 each week. A lucky 14% of teenagers get $40 or more each week.