Becoming Financially Savvy By Maximising Financial Knowledge
Commissioned by Eastspring Investments, the Asia Money Parenting survey was conducted among 10,000 parents across 9 Asian countries to find out how parents across the region engage their children about money matters. It revealed 5 money parenting personas that differed based on: the extent of parents’ involvement, the importance parents placed on money parenting, and the level of the parents’ financial knowledge.
Go-getters believe that superior financial knowledge and expertise are the keys to success in life. They want to give their child every possible advantage by imparting as much knowledge as soon as possible, and in many different ways.
How They Teach About Money Matters
Starting from an early age, Go-getters give their child pocket money to teach their child how to handle the money and learn techniques to grow money.
The child is also encouraged to undertake various household tasks for payment, and even a part-time job, so they understand the value of money, how it is earned, and how it can be used.
Of course, experience plays a part in broadening a child’s financial knowledge, but to really learn financial sophistication requires education and application. It isn’t just ‘picked up along the way’ and cannot be left to chance. Therefore, Go-getters are least likely to allow their child to learn from real-life experience.
Rather, they are willing to try any sort of teaching methods to improve their child’s financial knowledge and money management skills. Go-getters are more likely than to employ almost every technique and tool to increase their child’s financial acumen and teach money management — whatever does the job.
For example, 61% of Go-getters (versus 47% of other parents) give their child a savings box to encourage savings, 33% of them (versus 17% of other parents) teach their child to use a calculator and other money management tools, and 31% use games to teach their child to handle money (versus 19% of other parents).
Their Money Parenting Goals
Go-getters actively teach their child about money management, because they believe financial competence is vital. Half of all Go-getters say that a primary goal is to give their child a head start in life so that they have a better chance of financial success in the future.
They place a lot of emphasis on their child becoming financially competent and understanding how to grow money. A key outcome they want to achieve is ensuring their child becomes affluent.
Based on their own investment experience, Go-getters are much more likely to purchase a range of financial assets for their child to deliver security and growth in their future. And you can be sure that Go-getters will show their child how to re-invest these to maximise the growth.
Their Money Parenting Success
After all this effort, do Go-getters think that they have done a good job of money parenting? Has their child learned about how to handle money and gained the head start that they hoped for?
Yes, they have. Every Go-getter parent in the survey is confident or sure that they have done a good job.
They feel they have gone above and beyond when it comes to money parenting. And the result is that they are confident that their child will become an affluent adult.
How Well They Know Money
Go-getters strongly believe that financial skills are critical and need to be taught. And what better way to do that than to improve one’s own knowledge first? They are hungry for more personal knowledge about money parenting, like what other parents are doing, tools they are using, teaching styles — everything and anything to help their child become financially savvy!
Given the broad range of investments that Go-getters have for themselves and their children, it is little surprise that they are much more likely than other parent personas to seek professional advice.
If you are a Go-getter who is curious about how other parents are money parenting, check out our #MoneyParenting site or subscribe to our newsletter to stay updated with our latest content.
Still unsure of your Money Parenting style? Check out our quiz here to find out more!