Spending habits determined by parents

A new study from the University of Arizona has found that parents have the biggest influence over developing a child’s spending habits, more than financial education and work experience combined.

In a study involving 2,098 university students from various backgrounds, questions were asked about parents spending status and financial behaviours, parental direct financial teaching, school work experience, and school financial education.

Parents emerged as the biggest factor in deciding attitudes towards money, while work and financial education played a smaller, but still significant role.

Dr Soyeon Shim, leader of the study, said: "In a culture that demands individual responsibility and self-sufficiency, financial literacy is an essential component of a successful adult life.

"Parents who intentionally teach their children about financial management may exert a greater influence on children's financial knowledge than do lessons learned in high school and those learned in the workplace combined.

"Given the importance of financial well-being to many indicators of college student success, such parental investment in the financial skills and knowledge of their adolescents may pay substantial dividends in terms of youth health, adjustment, and academic success," she added.