Rising costs-of-living are fuelling finance chats between UK parents and children

Legal & General surveyed over 2,000 individuals with children aged 6–16 years old to find out how modern-day parents across the UK approach teaching their children important financial lessons. 

Financial skills matter 

The majority of parents feel financial skills are important (95%) - and most of them (90%) have talked about financial matters, such as budgeting and saving, with their child.  

Although, there were some regional differences. 74% of parents in Sheffield said they talked about money with their children, whereas in Plymouth, the figure rose to 98%.

When it comes to learning money skills, over 80% of parents feel children should learn financial lessons both at home and in the classroom. 

The cost of living

As household budgets continue to squeeze with the cost-of-living crisis, 92% of UK parents say the impact has encouraged them to talk more openly about finances with their children.

Parents are starting these important financial conversations early. 87% with children aged six say they’ve already discussed money issues with their child due to the crisis. As children get older, this rises to 96% amongst parents with 12-year-olds. 

Money Management

Providing pocket money ‘once a week’ was the most popular frequency for children to receive money – and most of the parents polled were pro-pocket money, and this peaked in the teenage years.

70% of parents give pocket money to children aged 6 -years old, increasing to 89% amongst children aged 16. Regionally, parents in the North East were the most likely to do so (90%). 

To help manage and access money, over half (51%) of parents have given their children a debit card – allowing them to spend and deposit money.

Paula Llewellyn, CMO and Managing Director of Direct at Legal and General Retail comments: 

“At Legal & General we support financial education at all ages – you're never too young or too old. It’s great to see parents feeling empowered and willing to discuss money matters as a family. Teaching children the basics of money management, like budgeting and saving early on is an investment in their future.

“Parents and teachers alike are well placed to equip children with essential life skills that will help them achieve financial success later in life. This is especially important in the face of a cost-of-living crisis. There's no better moment to consider how you pass on vital knowledge to your children and set them on course for a secure financial future.”