Study Finds That Kids Don’t Know Jack About Money And I Could Have Told You That

Money Glasses Happy KidAccording to a new study done by the McGraw-Hill Federal Credit Union in New Jersey, most mothers don’t believe that their children are ready for financial independence. In other news the sky is blue and ice is cold.

Seriously though, the study goes on to note that of 300 mothers, 49 percent think their kids won’t be able to land a job, and 44 percent think their kids will have trouble financing a student loan. They also throw some in tips about teaching fiscal responsibility that even Captain Obvious would think are too glaring to mention.

  • Talk about money around the house
  • Provide allowance and add chores
  • Teach them about budgeting

The hilarious part here isn’t that this whole “study” is an obvious marketing ploy from McGraw-Hill Federal Credit Union. No, the hilarious part is the way CBS News covered the study, as if it was performed by Alan Greenspan himself. They also added their own little gems about responsibility, this time as it pertains to the job hunt. All but one of these tips are exactly like the ones the “experts” from McGraw Hill came up with, but hey, at least they acknowledged that dads exist!

“This is obviously sound advice, since if your kids don’t understand how a credit card works they are likely to think it provides an unlimited supply of money. But I’d like to speak to the first point: The 49 percent of moms who believe their children are unprepared to get a job. If you are among this group (or are a dad of one of these kids) here is what you should be doing to help your children get prepared to enter the working world…”

And those would be:

  • Give them more chores to do.
  • Reward them for better school work (and don’t hover).
  • Talk about work and money in the home (so they don’t think they’re the center of the universe when they grow up).
  • Teach them to use an alarm clock.

My oldest child is still a bit too young for me to gauge how responsible she will be with money, but if I had to guess I’d say she will be fine. We talk about money and finance all the time in our home and she watches me balance my check book all the time (yes I still write checks).

(Photo: Mariia Masich / Shutterstock)

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  • LiteBrite

    I read the book “Parenting with Love and Logic”, and one of the things the author (I don’t remember his name and I’m too lazy to Google right now) advised to instill a sense of financial responsibility was to let the kid spend his/her allowance as they wished but let them handle the fallout from that decision. For example, let’s say your kid gets a $5 allowance and spends it all on candy on the first day then is whining two days later when he/she wants to go to the amusement part but has no money to do it. As the author said, “Don’t give the kid extra cash. Let them live with the consequences. Making financial mistakes is how you learn not to, and doing it at 10 is way easier than doing it at 25.”

    I guess I see his point. Btw, I did not know ice was cold. Good to know for future. :)

  • Cheyhorn31

    We give our teenager a fixed allowance and we rarely give extra money. If she wants something, she has to save or do extra chores. She’s more appreciative when we do spring for things and she knows how to stretch her money, after much trial and error. Like LiteBrite, I recommend Parenting With Love and Logic, especially the teen version. It’s made a huge difference in our parenting.

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