New research from the Money Advice Service (MAS), has revealed that the majority of UK parents agree that they are the single biggest influence on developing their children's money management skills, yet 58% say that they find it difficult to talk to their child about money matters.
Only half (52%) of parents said they discuss money matters regularly with their children and worryingly, many admitted to handing out varying amounts of pocket money at irregular intervals. The Money Advice Service is concerned that his lack of consistency could make it harder for children to understand how to manage money for themselves as they grow up, potentially impacting the development of budgeting skills as young adults.
To help families, MAS has put together a helpful piece of interactive content called The Money Management Challenge for both parents and teenagers. The Money Management Challenge includes some scenarios that many parents and teenagers will recognise when it comes to budgeting their finances. Advice and tips are provided to help all the family become more informed when it comes to money, including how parents can help their teenagers become more financially savvy.
For example, did you know that if parents make pocket money a regular, fixed amount, rather than just handing it out as and when asked, it gives teenagers the chance to learn how to budget for things they want. Teens that get a fixed amount regularly were found to be more likely to save. The research also showed that 75% of teenagers who receive a fixed income regularly were confident managing their money.
You can take a look at The Money Management Challenge here: