Survey Shows US Parents Increasing Financial Transparency with Children Amid Economic Pressures

U.S. parents discuss money with their children amid economic pressures. The survey included 2,000 parents of children under age 18. It found that many respondents reported being more transparent about family finances due to recent financial challenges.

Many parents stated they say 'no' to purchase requests more frequently and explain their reasons to their children. Brad Klontz, a financial psychologist, author, and associate economics professor at Creighton University, said that such honest conversations provide an early foundation in financial literacy. He noted that these discussions can benefit children in their adult financial lives.

Schools vary in their approach to financial education. Several states require students to pass a personal finance course for high school graduation, according to the Council for Economic Education.

Research indicates that children can begin forming lasting money habits as early as age 5.

A 2022 study by researchers at Brigham Young University reported that children who learn financial literacy early are more likely to develop healthy relationships with money, improving their financial and overall well-being as adults.

Parents can explain concepts like budget constraints, such as why an expensive item does not fit the family budget, or discuss savings for future goals like college education. Klontz stated that children who engage in these talks end up in better financial shape as adults compared to those who learn through difficult experiences later.

He added that avoiding money discussions is a mistake, as it can lead to long-term gaps in financial knowledge.

“You don't want to give your kids the message that this is a stressful, taboo topic that 'we don't talk about,'" said Brad Klontz, financial psychologist at Creighton University (CNBC).”