Survey of Canadian parents suggests financial transparency and application are key to preparing the next generation
Being bad with money isn’t genetic, but that doesn’t mean it won’t get passed down the generations.
That’s the key finding from a Leger study conducted on behalf of Mydoh, a teenage money management app powered by RBC.
Over half of Canadian parents (54%) polled believe their parents weren't proactive enough in teaching them about money and budgeting. What’s more, two thirds (65%) of parents said that their own relationship with money was influenced by that of their parents.
Overall, the data shows that financial knowledge (or lack thereof) and accompanying worries can be passed down within families.
Read more: Industry reaffirms collective commitment to financial literacy
"Money carries a lot of stress for Canadians - women and people of colour particularly - and from the survey, we're seeing that stressors can be passed down through the generations; sometimes unintentionally," Sammer Haq, Head of Data and Analytics at Mydoh, and Founder and Executive Director at BridgeTO Youth, said.
Most Canadians feel shame, regret, and self-doubt about their own money management abilities, despite the country's ranking among the top 10 in the world for youth financial literacy.
In addition, 62% of parents surveyed said their financial situation or decisions had a negative impact on their mental health, with this feeling being disproportionately more prevalent among women (65%).
An overwhelming 90% of Canadian parents surveyed (with children aged 6 to 18) said they hoped their children would learn basic money management – that came ahead of basic soft skills, cooking, housekeeping, and sports/exercise skills.
Still, they weren’t confident in their kids’ relationship with finances, and they don’t expect to be released from their financial obligations to their children once they reach adulthood.
Nearly seven tenths (68%) of the parents polled said they wished their own parents had taught them more about handling money. A further 46% of people believe they need to overcome bad financial habits like living without a budget and accruing debt.
Read more: More households are starting their kids young with 'the money talk'
Additionally, the data reveals the desire to overcome unhealthy financial habits from past generations was more intense among parents who self-identify as persons of color than their counterparts.
Most parents feel that discussing money should be a family affair (70%) and that allowance-based activities like housework help children learn valuable lessons about money (88%). Parents are aware that talking about money won't be enough; showing kids practical money skills is essential for developing their confidence and financial literacy.
According to Angelique de Montbrun, chief marketing officer at Mydoh and mother of three, "If we are truly going to improve the financial wellbeing of the next generation, parents must be more open to including their kids in money talks and prioritizing the practical application of their money skills."
