Good money management starts at home
The Australian Securities and Investments Commission's proposal to include financial literacy in the education system is a good one but financial literacy has to start at home from the parents, a personal loan specialist believes.
"If we want our kids to grow up with the right set of skills, values and behaviours to confidently manage their own money, then we need to introduce basic financial literacy at home," managing director of Fair Go Finance Paul Walshe said.
The comments come after a survey showed children who received money advice from parents when growing up are more likely to have better financial habits and chances of success.
"The Future You" survey by personal loan specialist Fair Go Finance showed people who got financial advice as kids are more financially savvy while those who did not are likely to struggle to make ends meet.
The survey of 2,000 people showed 52.2 per cent of those who got money tips from parents think they have good financial habits, while 33.9 per cent who did not receive money advice think they have good financial habits.
Also, 63.8 per cent of those who got money advice said they set annual financial goals, while 50.1 per cent of those who did not get advice do the same.
More than a quarter of those who did not receive money advice growing up (28 per cent) said there was little to no chance of them reaching their financial goals.
The survey also found 28 per cent of those who do not get money tips from home feel overwhelmed about money management and do not know where to begin.
AUTHOR
Malavika Santhebennur
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