Parents are greatly underestimating the effect the credit crunch has on their children, says a new study. The recession is affecting not only their attitude to finances, but also how worried they are about their parents’ wellbeing.
While only 18% of parents thought their children were concerned about the recession, in reality 55% of children are worried about the impact the credit crunch is having on their mum and dad, according to research by Asda.
“There is no doubt that the downturn is having a dramatic impact on children and their behaviour with pester power on the wane for the first time since the war,” says Paul Kelly, External Affairs Director for Asda. “The research provides a valuable insight into how the next generation’s attitudes towards money are changing, and how this will impact their purchasing decisions in the future.”
Children have become much more frugal when it comes to money, with 44% saying that they have stopped asking their parents for things they don’t need since the start of the recession. A new trend of ‘mirroring’ has also emerged as children follow their parents’ money-saving examples by making things last longer and choosing less expensive brands.
Children of the credit crunch also say that they are learning from their parents’ financial mistakes and 78% said they would be more aware of how to budget when they are older.
Do your little ones show any signs of being money savvy?