Nearly nine in ten children shoulder the money worries of their parents
Deciding whether to spend their pocket money on a Kit Kat or a Curly Wurly is no longer at the forefront of children’s minds, as new research reveals that many are not only being burdened with their parents’ economic woes but are also lending them money.
prepaid cardsA staggering 88% of children aged eight to fifteen believe that their parents worry about money, while 58% fret about money themselves.
The research, carried out by Halifax as part of the annual Pocket Money Survey, reveals that 21% of children think their parents worry about money ‘all the time’ and that just 3% say their parents ‘never’ show any concern over financial issues.
In addition, 31% of the 1,132 children surveyed said that they have lent other people money, with 63% lending to friends and a substantial 29% lending to their parents.
The news comes with three weeks remaining of the school summer holidays and as parents face the most expensive costs for filling spare time in over a decade.
Head of Halifax Savings Richard Fearon said: "It is concerning that children are becoming anxious about their parents' money worries but this highlights that children are really aware of the financial behaviour of the people around them.
“By introducing positive saving and spending practices from an early age, children can get into habits that will help them to manage their money as they grow up and understand the benefits of saving in both the long and short term."
The number of open Halifax children’s savings accounts increased by 20% from April to June 2012 and the average balance of these accounts rose by 6% over the same period, suggesting that kids are becoming increasingly concerned about money.
Mr Fearon added:"As a result of an increased financial awareness amongst under-16s there has been a positive shift towards children's savings which can enable them to take control of their money and learn how to manage it from an early age."
The research also showed that older children are more likely to worry about money than younger children and that three times as many boys than girls (6% and 2% respectively) claimed to worry about money ‘all the time’.
If you are looking to teach your children how to manage their money, a prepaid credit card might be worthwhile, as they prevent overspending or the acquisition of debt.