Children’s struggle with the value of money
Cost-of-living crisis makes it hard to teach kids the real value of money, according to new research from fund manager Columbia Threadneedle
The cost-of-living crisis is making it difficult to teach kids the true value of money, according to new research from fund manager Columbia Threadneedle Investments.
Stubbornly high inflation – with the latest consumer price index pushing prices up 8.7 percent – leaves young people (under 18) confused and unable to understand the basics of budgeting due to the increasingly changing high street costs.
More than half of parents and grandparents believe this makes it much more difficult to get young people to develop money management skills needed in adulthood.
Value of money: Stubbornly high inflation leaves young people confused and unable to understand the basics of budgeting
Despite this concern about learning the true value of money, most parents still place budgeting at the top of their list as the most important financial lesson young people need to learn for when they grow up.
This is followed by a better understanding of the need to save, responsible use of debit and credit cards and a requirement to save for retirement by having a pension.
Disturbingly, only 20 percent of parents and grandparents see financial scams as a vital topic of conversation, while the art of investing lags far behind: only one in 10 believe learning about stocks is essential.
Ross Duncton, Head of Marketing at Columbia Threadneedle Investments, says: ‘By involving children in the weekly shop, parents and grandparents will hopefully help young people better understand inflation – and how prices can rise and fall.
“Taking this out should help them better understand the eroding impact of inflation on savings and how investing can be used as a way to protect money against rising prices.”