The role of families in developing financial awareness

2019 Blog, Other

For Hungarians, teaching their children how to responsibly handle money is very important, and most believe that schools have a notable role in teaching financial know-how to children. However, parents need to understand that developing financial awareness is also a task for familial socialisation, which has a pivotal role still. Research results support the claim that youngsters mainly follow their parents in financial behaviour patterns they will later use themselves. Therefore, the financial awareness of students is directly linked to the financial development level of their parents, their knowledge. Thus, financial culture is learned, intentionally or unintentionally, from home at first.

Many parents make the mistake that they handle their money irresponsibly right before their children, and neglect to follow money movement, constantly questioning other family members about where money disappeared to again. Doing this with the awareness that the education system will teach the child how to handle money.

Lest we forget, the aid of parents has a strong effect on the economic orientation of youngsters (for example, teaching them to keep inventory of expenditures and income, or initiative to spare money). Youngsters that get such aid have more savings, are more future-oriented, and are generally more aware in all walks of life.