Children are listening. Parents, are you ready to talk?

McLEAN, Va. (8/1/07)--Parents who lament the fact that their kids don't listen to them might be overlooking a golden opportunity to communicate (PRNewswire-FirstCall July 29).

According to Capital One Financial Corporation's third annual back-to-school survey, 87% of college students say they rely on their parents for financial information. But less than 30% say their parents have advised them about spending wisely on the nearly $700 on average of school supplies they'll buy this fall.

Young people have high expectations for parental guidance in money matters. High school students are even more likely (90%) than their college-age siblings to look to their parents for tips. But even so, youth and young adults rate good old trial and error as high or higher than their parents as the source of financial wisdom. Although 90% of high school students say they learned about money management from personal experience, a whopping 98% of college students rely on the school of hard knocks.

"Despite looking to their families for general money management advice, most young adults 'learn as they go' when it comes to handling personal finances," said Diana Don, Capital One's director of financial education. "Without ongoing parental guidance and check-ins about money matters, young adults are setting themselves up for missteps that can lead to bad financial habits."

Part of the problem with parents' reluctance to talk about money with their children stems from the difficulty many adults have making ends meet. One of two parents who responded to a 2003 Northwestern Mutual survey said that they don't set a good example in managing money and are not capable of properly teaching their children to do so.

"That's why parents should start talking about money with their preschoolers," says Philip Heckman, director of youth programs at the Credit Union National Association (CUNA). "The earlier you begin the conversation, the easier it is. You can improve your own money habits by beginning to teach your kids the basics of smart spending and saving before they even start school."

For free lessons to teach basic money concepts to preschoolers, go to creditunion.coop and download teaching activities and other resources such as Thrive by 5 from CUNA.

For information and materials to teach older children about money, visit jumpstart.org and search the online Jumpstart Coalition for Personal Financial Literacy Clearinghouse.

courtesy of cuna.org