Parents should teach children financial literacy
Last reviewed: 16.10.2021
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Parents should be role models for their children, so that in their turn they can make independent financial decisions in the future. To this conclusion came the scientists from the East Carolina University.
The results of the work of scientists are published in the journal Springer's Journal of Family and Economic Issues.
Money is one of the most important elements of public life. Around this concept many factors of our life revolve directly related to financial independence. Growing credit card debt among the younger generation is of concern to researchers who associate this with financial illiteracy.
Professor Adam Hancock and his colleagues are the first to decide on the behavior and attitudes of parents regarding the financial costs of their children.
The researchers analyzed the data of 413 students from seven different American universities as part of the program "Review of financial literacy among students." Using online survey, scientists have analyzed the number of credit card holders, the level of indebtedness of young people, their financial relationships with parents, work experience, as well as the attitude to credit.
In general, almost 2/3 of the students surveyed had credit cards, and almost one-third of that number had several. Most young people started a credit card, following the example of their parents. Girls more often than men resorted to the use of credit and had more than one credit card at their disposal.
Those students who had two or more credit cards were almost three times as likely to report a debt of more than $ 500.
"One should not underestimate the influence of parents on the adoption of correct financial decisions by children. They should help young people navigate the labyrinths of financial transactions, especially with regard to the use of credit. It is necessary to do this already in adolescence, when the child begins to make independent financial decisions so that in the future he can effectively and efficiently manage finances due to his experience and knowledge, "says Professor Hancock.