Survey finds 28% of parents financially supporting adult children
This figure was released following a survey of 2,500 parents with children over that age.
The survey revealed 28 per cent are still supporting their offspring financially.
This has sparked a call for financial education for children from a young age.
Finance expert Gary Hemming, from ABC Finance, has provided a guide on what to teach your children about money, when to start, and why it’s so important.
He recommends starting as early as ages 3-5 with an introduction to money.
Parents should teach their children to recognise different coins and notes and their relative values, and to understand the concept of exchanging money for goods or services.
He asserts that laying the groundwork for financial literacy at this age fosters early financial awareness.
As children get older, Mr Hemming recommends building their financial foundations between the ages of 6-12.
His advice includes introducing the concept of saving money, teaching basic budgeting skills, explaining how to earn money, and discussing banking basics.
He contends these lessons are most effective when children begin to have their own pocket money, as teaching kids about financial planning during this stage leads to good habits and attitudes that could last a lifetime.
Once adolescents hit their teenage years, he advises enhancing their financial skills through discussions about smart spending, investments, credit and loans, implications of debt and long-term financial planning.
He says this stage of financial education is particularly important as it coincides with milestones like their first part-time job or planning for college.
Finally, in young adulthood, he suggests teaching budget management, insurance, retirement planning, and tax responsibilities.
This advice is crucial for this age group as they transition into full independence, particularly when they start their first full-time job or move out on their own.
Mr Hemming said: “Teaching your children about money at each stage of their development equips them with the necessary skills to navigate their financial journeys successfully.
“By introducing appropriate concepts at the right time, you can help your children build a solid foundation of financial literacy that will benefit them for a lifetime.
“Remember, it’s not just about imparting knowledge but also about modelling good financial behaviours and encouraging open discussions about money, ensuring they feel prepared and confident to manage their finances effectively.”
