Empowering Future Generations: Unveiling the Crucial Role of Parents in Shaping Financial Decision-Making Skills

Financial education is a critical component in the development of responsible and conscious individuals. This study delves into the pivotal role that parents play in instilling financial skills in their children. According to the OECD (2017), financial education should start as early as possible, with parents being the first educators in this context. Early financial education, for example, appears to have a positive impact on long-term financial health, including a higher likelihood of saving and lower levels of indebtedness (Webley and Nyhus, 2006). Our study builds upon previous research (Jorgensen and Savla, 2010; Shim et al., 2010) that demonstrated the influence of parents on their children’s financial behavior. We conducted an online pilot survey on a sample of parents (N= 21; Female= 18; mean age = 49 years) with children aged 6 to 14 years, examining parents’ financial education practices and their perception of the financial attitude and knowledge in their children. Preliminary results indicate that 25% of parents perceive it as very important to discuss financial matters with their children and the same percentage consider themselves adequately equipped to educate their children. From the research analysis, it is observed that 44% parents feel confident in imparting financial knowledge to their children, yet admit to being unprepared when it comes to updating their own knowledge. Schools are viewed, for the 61% of the sample, as the primary source for a more structured education. Regarding pocket money, most children receive a fixed amount (67%), believed by parents to foster their financial competency. However, some parents refrain from this practice, considering their children too young to manage money (23%). However, only a 22% of the sample feel equipped to educate their children on financial matters, specifically when this education involves technologies (i.e., digital payment systems). Therefore, we underline the importance of providing parents with the resources and skills necessary to perform this key role. This could include training programs for parents, educational materials, and the integration of financial education into school curricula. These findings underscore the importance of providing parents with the necessary resources and training to educate their children about financial matters, including digital payment systems. This could be achieved through various means, such as parental training programs, educational materials, and integrating financial education into school curricula.