TD’s Financial Literacy Month survey has found that many parents are worried that without healthy money habits, their children will go into debt as adults (54 per cent); be dependent on their parents if they run into financial trouble (36 per cent); and always ask their parents for money (32 per cent).
In an announcement issued this week, TD suggests it is important for parents to instill good spending habits in their children at a young age so they have healthier financial practices in the future.
Talk about money
"Talking about money can be difficult, especially when you sometimes wish you'd made different choices yourself along the way," says Kerry Peacock, executive vice president, Day to Day Banking, Investing and Transformation for TD. "But starting the conversations early means your kids can ask you questions and learn, giving them the opportunity to make good choices around budgeting, saving and spending as they grow up, and when they're adults."
Canadian parents consider money to be one of the most important topics to discuss with their child. While 94 per cent say they have the biggest influence on their child’s future financial skills, 31 per cent say they have difficulty addressing the topic.
Draw from real-life experiences
"Opportunities for money conversations with your kids are everywhere – from how you save to pay for their extracurricular activities, use your credit card to pay for groceries, to how grandparents can afford family visits when they are retired," says Peacock. “Kids are curious and connected to the world around them; use your family's real-life experiences to start conversations, and tools and advice to guide your discussions.”