When you were young, you probably viewed the tooth fairy as a Santa reincarnated long before Christmas. She brought in her bosom, a little dollar or two to celebrate the falling out of your milk teeth. Once your little tooth would fall off, you would carry it around boisterously, telling anyone who will listen that you are awaiting the tooth fairy to trade in your precious tooth.
Unfortunately, you probably never thought any more of it. You never questioned the unfairness of the tooth fairy for how she paid $2, if that same tooth fell of a boy’s jaw but just $1.50 if it was from a girl. You never recognized this discrepancy for what it was- the beginning of the gender differential, of how a man will always earn more for the same position and designation as a woman.
Money problems start when the world starts making sense
According to research carried out by a money managing application, HyperJar, astonishing results were obtained about people’s relationship with money based on their childhood attitude towards it. About 44% of the people who earn an income above £75,000 revealed that they have a history of being expert negotiators and meticulous savers since childhood.
This statistic reflects the 34% of people who revealed this childhood trait in the national survey. These adults, who now earn a hefty paycheck every month, we’re deep into negotiation practices right from the start where they bargained for a rise in pocket money back from when they were little.
The study also demonstrated that children who observed their parents discuss finance when they were young, had a healthy relationship with money than those who were never privy to such financial discussions.
Kids who never witnessed their parents pour over budgeting logs and monthly utility bills reported that they feel uneasy around money. 22% of the people accepted that they shirk from monetary discussions.
18% confessed that they suffer from financial planning fatigue. Likewise, a few of them blamed a lack of time for their poor budgeting and monetary control. A small percentage of these children, now grown into adults, also confessed that they were plagued by impulse buying decisions that ate away their savings.
How to raise financially stable and successful children
In the end, the question becomes- where the parenting went wrong that turned so terrible with financial matters despite being educationally accomplished and rational adults?
The answer is that you need to make your child money-smart right from the beginning and guide them into making smart money decisions with the first stipend they get: their pocket money.