TD survey reveals that most parents are concerned about their children's financial future and say they should be better prepared
If you could jump in a Delorian and visit your 14-year-old self, what financial advice would you share?
Most of us have made financial mistakes, often through lack of knowledge or understanding, and while we can’t go back to our own financial futures, we can prevent history repeating itself. At least, that’s what Canadian parents are hoping.
A new survey from TD Bank Group reveals that 3 in 5 parents worry about their children’s financial future and want them to have a better chance of reaching their financial goals.
And they believe that one of the best ways to do so is to start teaching them young with 89% of respondents agreeing that they would feel more confident in their children’s financial outlook if they improved financial knowledge before their teenage years.
Six in ten parents said they had made mistakes with finances due to a lack of financial literacy in their own childhood and a similar share say that they are not highly confident in their children’s financial knowledge for their age.
What can advisors do?
They survey shows that 70% of Canadian parents don't feel very prepared to support their kids' financial literacy at home, which offers opportunity for financial advisors to engage with clients’ families.
The good news is that even relatively simple things are needed, with 73% of parents citing budgeting and 72% citing saving money as the most important things for kids to learn today.
However, less than 3 in 10 poll participants said they have regular conversations with their children about finances.
"It's never too early to start talking about finances and there are small, simple steps parents can take now to help increase their children's financial knowledge. We suggest parents keep the conversation age appropriate, talk openly and honestly about money, and help your kids distinguish between needs versus wants," said Emily Ross, VP, Everyday Advice Journey at TD.
