Parents

Have you ever noticed how two families with similar incomes can feel completely different about their financial situation? Research suggests that it is not always actual income that shapes family life. Sometimes, what matters most is how parents perceive their financial situation. A recent study by Van Petegem and colleagues explored how parents’ perceptions of economic inequality and financial scarcity relate to their involvement in their children’s schooling.¹

What if one of the best ways to teach young people about money is simply to let them use it? When we think about financial education, we often picture budgeting worksheets, classroom lessons, or conversations about saving and spending. But learning about money is a lot like learning to drive. Reading the manual helps, but eventually you need to get behind the wheel. A recent study examined what happened when teenagers received $50 per week in unconditional cash for 10 months. Researchers found that having money to manage gave young people opportunities to practice financial decision-making, reflect on their goals, support their families, and learn lessons that traditional financial education alone may not provide.¹

Have you ever wondered why some families seem happy and connected regardless of their income, while others struggle despite having plenty of financial resources? Some people assume that more money automatically leads to happier families, but reality is more complicated than that. While financial stability can certainly reduce stress and provide opportunities, researchers have found that money alone does not determine family well-being. Instead, what parents do with the resources they have and how they interact with their children may matter just as much, if not more.

Moving out, scheduling your own doctor appointments, learning how to cook something other than craft Mac n cheese—these are some of the many milestones that mark the transition from tethered teen to independent adult. Becoming financially independent is another one of those big milestones, but research shows that emerging adults are taking longer than they did 50 years ago to meet this key milestone.1 What does this mean for families, and how do kids learn to manage money in the first place? In this article, I’ll discuss how different socioeconomic classes of parents tend to teach their kids about finances—and how those teachings often shape adolescents’ financial futures.

We don’t just inherit our parents’ looks and last names—we can also inherit their money mindsets. These financial foundations aren’t passed down through genetics, but rather through a series of interactions over time called financial socialization. Financial socialization is the process by which parents’ own financial behaviors impact their children’s future financial behaviors,[1] and it can occur in several different ways. For example, parents can model financial behaviors through their example, talk with their kids about money, or provide experiences for kids to practice money management. As parents teach their children about finances, it can impact their children’s current and future relationship with money.

When I was 9 years old, I had no idea what ‘Air Jordans’ were. So, when a student came to class wearing a highlighter-yellow pair, I was confused by the hullabaloo from my peers. I also didn’t realize how much popularity someone could get from something they wore! When I got home, I asked my mom if I could get some new shoes. I’m not a materialistic person, but envy of material things started early for me. 

Race is one of many factors that can affect our experiences. For example, in the United States there is vast economic inequality by race due to past and present racism and differences in opportunities (for example, the average White family has twice the income and 13 times the wealth as the average Black family).1 Socioeconomic status tends to be an inherited trait, with kids of wealthy parents being more likely to become wealthy themselves, and kids of impoverished parents being more likely to live in poverty themselves.2 Racism and economic inequality can also affect families’ access to and experience with banks and financial institutions.3 A combination of these and other factors could contribute to differences in how parents of different races teach their kids about money.

In today's complex financial landscape, equipping children with the necessary skills and knowledge to navigate their financial futures is more important than ever. Dr. Bryce Jorgensen and colleagues shed some light on how parents can effectively prepare their children for financial success, emphasizing the critical role of parents in this learning and preparation.[1] In their study, they found that parents can significantly influence their children's financial competence through (1) active involvement, (2) open communication about finances, and (3) establishing a supportive financial environment for their child. Our aim in this article is to help inform parents of potential practices that might help them prepare their children for future financial success.

Access to healthcare is fundamental to ensuring children’s health and well-being, yet disparities in healthcare access continue to exist.[1] This is particularly true when the financial state of the family is considered. Research highlights how economic factors and social inequalities significantly impact the availability and quality of healthcare services for children.1 This article will synthesize key findings from previous studies that elaborate on the intricate relationship between family finances and access to healthcare.

Many individuals and families find themselves in a precarious financial situation these days, especially as the cost of receiving education increases,[1] housing prices rise,[2] and living expenses climb.[3] In all the hustle and bustle of just trying to survive financially themselves, some parents may be curious about or even become distraught when thinking about how they should prepare their children for a financial future. Some parents may try their best to have discussions about finances and actively teach their children, while others may label financial discussions as “adult topics” and try to shield their children from the stressful reality of money management.