How well does your child understand money? Junior Achievement USA surveyed 500 children between the ages 7-10 and the children’s parents to uncover how children interpret the value of money, how it is acquired, as well as what their parents think about money education for their student.
Of the 1,000 responses, JA was able to uncover 3 main findings.
1. Most Children Understand How Money is Earned
The majority of the 500 children who responded had accurate expectations of how money is earned. In all, 91% believed people earn money by working, 40% thought money came from parents, 26% thought money was earned (by means other than working), while 4% believed money grew on trees.
2.Children Are Getting Hands-on Experience with Saving
The majority of the kids had hands-on experience with earning their own money at home. Of the 500 students, 82% of the children stated that they earned an allowance for doing chores, getting good grades, doing homework or simply being kind to others at school and at home. Through this hands-on approach, most of the children in this study were knowledgeable about the basics of money, including how to count and save money.
3.Parents Feel Learning about Money should Start Early
When it comes down to parents’ expectations of their children and finances, 94% of parents believed that by the age of 12 a child should start learning about personal finances. While the majority of parents (92%) are leading by example by saving money for emergencies, college tuition, and retirement; many children still seem to lack the understanding of savings, interest and smart spending.
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