Parents struggle to raise Invisible-Money Generation kids
The Financial Planning Association (FPA) of Australia has identified 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 released today by the FPA, which coincides with Financial Planning Week 2018, 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. Three in five parents (62%) believe this Invisible-Money Generation will be financially worse off than their own generation.
Tipping point in national spending habits
The FPA ‘Share the Dream’ report shows this Invisible-Money Generation is forcing a tipping point in national spending habits: 47 percent 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.
Below is a summary of other key findings, full details of which can be found in the FPA Share the Dream report, now available to the public and financial planners on moneyandlife.com.au:
- 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% cf. 43%).
- 80% of parents are financially stressed, with half (51%) declaring they are very to moderately stressed.
- Parents in NSW 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.
Dante De Gori CFP ®, FPA CEO, said: “A stand-out insight from our research this year is that parents who seek the advice of a financial planner create a lasting positive legacy for their kids too, in matters of money and life.
“For starters, it makes them much more confident in having frequent conversations with their children about money (61% compared to 43% of those who don’t seek the advice of a financial planner), which lays a strong foundation for a better future.
“The hard reality is many of us simply don’t know when or how to talk to our kids about money because the technologies, language and online possibilities are so very different. So I’m proud to release our ‘Share the Dream’ eBook for any parent, teacher or carer of children, tweens and teenagers: it has a range of activities and practical insights to help us raise this next generation we’re calling the Invisible-Money Generation,” he said.
“Our hope is our Share the Dream efforts this year will inspire and equip more Australians to share the dream of a financially secure, and happy future with the children in their world by committing to improve their own financial literacy, so they can start talking more with kids about money — in all its forms,” he said.
The FPA ‘Share the Dream’ 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 4 and 18. The research was conducted between 13-25 June 2018. The sample is nationally representative of parents by gender, age and state, defined as individuals who care for children in the 2016 ABS Census.
