Taking from your child’s piggy bank

Taking from your child’s piggy bank

A recent study in the USA saw that nearly half the parents in America take money from their children’s savings and most don’t even feel guilty about it. We find out more about this research...

take child's savings Will you take your child's savings from his account or piggy bank?

Conducted by the American coupon deals website, CouponCodes4u, a recent study has revealed that 49 percent of the 2,578 American parents polled have dipped into their children’s saving accounts before due to financial difficulty that drove them to such desperate actions.

RELATED: Money saving tips for new parents

What do they spend on?

Parents replied that when do they reach into their kids’ funds, it would usually be to pay for expenses such as bills, vacations and debts. Other things they spend on include birthday presents and other celebrations.

What parents spend on when they take their child's savings What do parents do with the money taken from their child's savings?

Surprisingly, over half these respondents who admitted to taking their child’s savings also claimed that they did not feel guilty for doing so. Shockingly, 45 percent also admitted that they often do not replace what they pocket from their children’s savings because they cannot afford to.

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Safeguarding your kid’s future

The chairman of CouponCodes4u commented that irresponsibly taking money out of your child’s saving account could jeopardise a child’s future and put the family at risk of financial difficulty. Parents should consider carefully if they want to do so, and think about what they need the funds for and why.

Setting up a saving account for your child is also essential in ensuring that he or she has somewhere to turn to on a rainy day. It also promotes an attitude of thrift and prudence, helping the child understand the value of saving.

RELATED: Teaching your kids about money

When surveyed, it was found that almost half of the American parents in the same poll did not set up savings account for their children. In light of the recent recession and global financial instability, perhaps less parents are well-to-do enough to create this sort of financial safety nets for their young ones.

Have you started a savings account for your child? Parents' responses to whether their child had a savings account or not

Realising the importance of saving

While it is important to educate children on the need to cultivate an independent habit of saving, parents in Singapore should also guide their little ones in this journey with small steps such as setting up a saving account for them and counting your weekly expenses together.

Respecting your child is also of utmost importance and parents who take their child’s savings secretly might breed a sense of suspicion and mistrust in their relationship with their kids. Communicating openly and asking for permission if you ever need to dip into some of your kid’s reserves helps establish mutual respect and trust, bonding the family and making you stronger to tide over any difficult financial period.

RELATED: How to save for your child’s education despite financial difficulties

Learn the importance of teaching your kids to save and get some tips from the video below:

RELATED: 5 common savings mistakes to avoid

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Written by

Miss Vanda

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