Parents and Money

Managing disposable income and passing on the right values about dealing with financial matters is not always an easy task for parents. Many caregivers do not realize in what ways their money can go to waste and miss out on savings opportunities. In times of recession, financial matters seem to be top priority of many among us. A great risk to the parents' financial budget are the so called "boomerangers" – graduates and young adults who due to financial problems or relationship breakups have been forced to move back in with their parents.

Monetary problems, however, are not always the result of a financial crisis but are often self-induced. Many new parents start making wrong decisions financially as soon as their baby is born. Instead of investing in long-term saving plans for university, they overspend on clothing, cribs, push chairs, etc. without realising that most of these newly bought items will only be in use for just about a year. When money is short, parents could opt for hand-me-downs or go to second-hand shops and yard or car boot sales. The problem is, that the money-spending pattern of parents will reflect on their children. If parents are likely to spend money more generously they can actually afford to, chances are that their children will end up in debt as well.

In order to avoid this scenario, parents should feel inclined to talk about the taboo topic money to their children. These money lessons should take place as an early age as possible. Thanks to advertising and television, children can comprehend what money can buy at a very early stage in life. Therefore, it is important to pass on the values of money to children from a very young age onwards. Another problem is that in our digitalised word electronic gadgets for children are becoming increasingly expensive. The only way for children to learn how to handle money is via learning from their parents, e.g. by giving them a weekly spending budget. One has to keep in mind that parents also function as teachers, educators and promoters of their own personal values.

For a company like Step Up! International, it is a priority to educate parents on managing their money so that they can pass on these values to their children.