Kids money: 20% of parents think social media is 'better' than they are for their childrens' finance education

• 20% of parents believe social media might be more effective than they are at teaching their children about money - despite risks like scams and fake profiles
• Nearly half of parents feel they lack sufficient financial knowledge to guide their children
• Parents struggling with financial discussions want help from schools, the government, online communities, and banks
• Contrary to stereotypes, a separate study has shown that younger generations display responsible financial habits, including budgeting
• More than two-thirds of 18 to 24-year-olds creae a budget and engaging in ‘no-spend months’
• Gen Z is more proactive in managing finances compared to Baby Boomers, challenging the notion that younger people are less financially responsible

A recent survey has revealed that 20% of parents think social media could be more effective than they are at teaching their children about money, despite the risks of scams and fake profiles.

Additionally, 42% of parents admitted they feel inadequate in their own financial knowledge to effectively guide their children.

Nevertheless, 95% of parents agree that they should be involved in teaching their children about money, according to research conducted for Santander UK.

Parents struggling to talk about money with their children expressed that they would benefit from various forms of assistance.

These include official guidance from schools or government about how to approach financial topics (24%), and an online community to provide them with support and advice (24%).

Nearly a quarter (23%) would like tips from their bank about how to explain financial topics. Many banks have money tips for consumers on their websites, including Santander which has a section on “ways to cut your spend”.

Mark Weston, director of financial support at Santander UK, said: “Teaching our kids about personal finance can be an uphill battle at the best of times but especially when we lack confidence in our own money management skills.

“There are trustworthy influencers and online resources to help children to grapple with financial education, but there are obvious risks without a parent to help guide them.

“Picking up money habits from social media with no parental involvement could leave young people learning poor financial habits or even open to scams.”

But earlier this week, it was revealed that Gen Z is more likely to be responsible and cautious with its money than ‘Boomers’, with a study finding that nearly three-quarters of 18 to 24-year-olds have participated in social media-driven challenges to enhance their savings.

NatWest’s savings index also found that more than two-thirds of those belonging to Gen Z create a budget for their finances, while less than half of baby boomers do the same - more than two-thirds of 18 to 24-year-olds set a budget, compared to just 42% of those over 65.

The news challenges the common stereotype that younger people are more frivolous with their money, and suggests that in actuality, a significant majority are actively managing their finances.

About 18% of this age group also engage in "no-spend months," and 17% have experimented with a budgeting technique that allocates their available money into categories of wants, needs and savings.

More than a fifth (21%) have tried “no impulse” purchases, as they seek to boost their overall savings. These proactive approaches to saving suggest that younger people are not only conscious of their finances, but are also motivated to improve their financial habits.

We’d love to hear your thoughts! How do you approach teaching your children about money, and what resources do you find most helpful? Share your experiences and tips in the comments section.