Adult money habits set by age of seven

Thursday, 23 May 2013 01:58

Parents beware – if your offspring haven't got a handle on their financial habits by the age of seven, they're unlikely to change their ways as they get older.

This is according to a new survey published by the Money Advice Service, which is urging parents everywhere to take heed of the findings and give their children the chance to practice saving early on in life.

Core behaviours and habits such as understanding the value of money and how it can be earned are understood by the majority of children by the age of seven, the research found.

They are also able to perform complex functions such as plan ahead with their finances and understand that some choices are irreversible, although most children under eight are still unable to distinguish between luxuries and necessities.

The review brought over 100 insights together from the last 30 years, and is pivotal in equipping young people with the financial skills they need in the future.

Caroline Rookes, chief executive of the Money Advice Service, commented: "This study really demonstrates the power of parental influences, and illustrates how much of what you learn and absorb when you are young.

"Over the next few months, we will be working closely with experts in education and the financial services industry to bring together a forum, and develop world-class parenting and teaching resources," she added.

Organisations that the Money Advice Service plans to work with include the Personal Finance Education Group and a number of non-school organisations such as financial service firms and banks.

It is hoped that by working in partnership with key companies in the industry, a strategy can be established comprised of several mediums including written and video content that will give children the best chance of managing their finances later in life. 

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