Parents, Children and Money

The tough conversations to have with children:  sex, drug and money.   According to a survey, parents are also bad at talking to their children about money.  There are two reasons for the issue:

Parents are not very good with managing financial issues.  For example the survey showed, a large percentage of parents were not doing the tasks important for a secure financial future: saving regularly for retirement, having life insurance, creating an emergency savings account, having a will.

Parents focus on short term versus long term finances.  For example, parents are more likely to save for vacation (46%) than for college (41%) and less than two thirds talk to their children about a college education will be funded.

Unfortunately, according to the survey, virtually all children (97%) say they learn their money habits from their parents.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial or parenting advice. Please consult a professional advisor.

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