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Three in five (59%) kids report that they go to their mom first with money questions and more than one-third (35%) think their mom is in charge of the money.

According to T. Rowe Price 2013 Parents, Kids & Money Survey, moms have a huge influence over their kids when it comes to money matters. That is because kids think that mom is in charge of the family’s money. However, parents feels that money conversations about spending, creating a nest egg, and family finances are less important to discuss with their kids compared to topics such as teaching manners, drugs, and current events1. The irony is that regardless of whether or not you are discussing finances with your kids, they are learning from you about money. And, primarily, moms are the ones teaching by example.

kids and money

Unfortunately, there is a large percentage of parents that are teaching bad financial habits or teaching nothing at all. With the convenience of debit and credit cards, many kids are seeing how mom spends money using the swipe of a card, but they don’t know how it gets paid. Moreover, moms are not explaining that when you pay for something using a credit card, that it should be paid off completely so as not to incur interest charges. In fact, slightly more than one-third (34%) of parents pay off their credit cards each month, but 44% report they carry a balance. 2 Even though moms and dads intend to teach their kids to live within their means, actions speak louder than words.

Parents, we are the teachers and trainers of our children’s futures. Yes, we want to influence them to achieve in school, compete in sport and become productive citizens of society. But, we cannot forget to effectively train them so they will be financially responsible regarding saving, credit, diversification and retirement.

Source 1-2: T. Rowe Price 2013 Parents, Kids & Money Survey

CBS Sports Radio 1580 - listen liveJoin me tomorrow, May 4, 2013, at 9am-10am on SAFE MONEY TALK on CBS Sports Radio 1580AM as we discuss kids and money with an expert in family finances. Stuart Ritter, family finance expert and Certified Financial Planner, will share with us tips on how to set up your children to be financially successful. He is the father of three young kids and a huge advocate for starting good family money management.