By now, the news that kids need to learn about money is nothing too startling—in the wake of the Great Recession, financial experts have been advocating financial literacy more than ever. Even so, finance courses still aren’t standard in most schools, which leaves the bulk of responsibility for educating children about money in the hands of parents and caregivers. That’s left some families inevitably questioning who should be the financial teacher, mom or dad.
The Survey Says…
According to the recent 2013 TD Bank Financial Literacy Poll, just over half (52 percent) of moms surveyed thought they did the lion’s share of the work when trying to educate their kids about finance. The majority do practical, everyday activities such as getting their children to count money (81 percent), talking about money when shopping (70 percent) and encouraging saving (70 percent).
Statistically, dads are more likely by 10 percent to feel confident about finance lessons, and dads are more likely to feel that budgeting is doable. Only 12 percent say they don’t know how to make a budget, compared to 19 percent of moms, and 35 percent say they don’t need a budget, compared to just 22 percent of moms. Dads also focus on items like goal setting (32 percent) and working with an allowance (52 percent).
What It Means
The results of the TD Bank survey show that, even though most moms clearly want to teach their kids about money, they might need a little help. A lack of confidence does not necessarily mean that the information they are providing is wrong, but it is disconcerting simply because it can affect the attitude with which they go through money lessons with their children. It also can affect efficiency.
Admittedly, a feeling of confidence is not a guarantee that the data fathers can give about money is any better than the information mothers are giving. Even so, the fathers clearly are approaching different areas of the finance education spectrum than moms. This might have to do with the way men and women are hardwired in their brain development—men are notorious for being “math- and logic- based,” while women are said to be more “emotionally-based.” Men might be focusing more on the tangible aspects because those elements are rational; when moms take everyday opportunities to teach, by contrast, they have daily moments to connect with their kids.
Based on this survey, it appears that the best way for moms and dads to provide a comprehensive financial education is to join forces, each contributing their own information in their own style and checking in with each other to make sure that all money topics get covered. This can be difficult with the complex schedules and commitments of the modern family, but it is enormously helpful in terms of providing a sense of consistency about what should happen with funds—kids won’t get mixed signals if parents collaborate. It also is helpful because it lets kids feel like they can come to either mom or dad for money help, possibly increasing the odds that they will ask questions when they are in doubt or are curious.
But Hold On…
The TD Bank survey also revealed that only 34 percent of the 1,367 respondents rated their financial knowledge as good or better. In layman’s terms, that means that, even if mothers and fathers come together to teach kids about money, there’s clearly a need for the majority of parents to take steps toward better financial literacy first. They can do this through a variety of avenues (conferences, books, websites or classes, for example), many of which are free. It’s simply a matter of matching the right option with the circumstances and personality of the parent.