In the UK it seems that we have a few taboo subjects we don't particularly like discussing with our children. Money and sex seem to be on the top of that list and whilst we don't like having the awkward conversations with our children, it is of the utmost important to do so.

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A new study by The Money Advice Service (an independent unbiased money advice organisation) has found that the vast majority of UK parents (57%) agree that they are the single biggest influence on developing their children’s money management skills. Yet 58% admit that they find it difficult to talk to their child about money matters!

Only half (52%) of parents say they discuss money matters regularly with their children. The key reasons parents feel uncomfortable broaching the subject of money with their kids are:
- Children shouldn’t have to worry about money (43%)
- I feel awkward discussing money – even with my own children (26%)
- My parents never gave me any money advice (19%)

A lack of confidence in their own ability to manage money was also a key factor – just 43% of parents said that they feel they are better at saving money than their children.

In addition, whilst 26% of parents had started giving their children pocket money by the age of five, just 16% had begun speaking to their children about the importance of saving by this age.

Impacting budgeting skills 
Whilst the vast majority of parents give their children pocket money, in most cases it is at irregular intervals with the amount varying. Just 38% say they give their children a set amount of money at regular intervals – for example each week or month. This lack of consistency could make it harder for children to understand how to manage money for themselves, potentially impacting the development of budgeting skills.

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Mums taking the lead The research highlighted that mums are taking the lead on financial conversations with 56% speaking to their children about the issue frequently in comparison to 46% of dads. Almost one in five (17%) of dads admitted to feeling awkward discussing money with their children, while a further 7% of them didn’t feel it was their job to do so.

Mums are also much more likely to include their children in conversations about the family budget (82% of mums versus 77% of dads).

Just the job?
Whilst many parents are reluctant to talk to their children about money, many see the value of them learning about it in the real world. Seventy-one per cent of parents said that children should have a job whilst in education, to both ‘teach them the value of money’ and to ‘learn how to support themselves’.

Pocket money index 
The research revealed the average amount of pocket money children between the ages of 11-18 years old receive from their parents by age. The amount was shown to rise an average of £1.78 - or 18.4% - per year:

Five Tops Tips from Dr Elizabeth Kilbey on talking money with your children

1. Subtly integrate it into your child’s life. You don’t have to have a big ‘money chat’ to bring up the idea of good money management. When you go shopping for example, encourage your child to make a choice between two items so they understand they can’t ‘have it all’ or explain to them that whilst two products are very similar, one is cheaper and it can be sensible to go for that one.

2. It’s never too young to start. My own experience backs up the Money Advice Service’s academic study which shows that money habits begin to be developed prior to the age of seven. Children shouldn’t have to worry about family finances, but you can help them understand money without doing this.

3. Be confident. This is your opportunity to help your children develop positive, beneficial habits. Even if you aren’t the best at money management, you will still have lots you can pass on to your children.

4. Have a go. Money is a very practical subject and children can be very hands on learners. Find ways for your children to handle and use money whenever possible and having pocket money can be a great way of doing this. In younger children, role play can be used – for example playing ‘shop’ using pretend money.

5. It’s ok to make a few mistakes; it’s how we all learn, and that applies to money as well. It’s far better for children to be making mistakes with little or no consequences than them facing bigger money issues when they are older which could have a bigger impact.

Why it's important
Having tough conversations with your children is part and parcel of being a parent and money can be a subject many find particularly hard to cover, especially if it is an area which they struggle with themselves. One of the key reasons for many parents is that they feel children shouldn’t be burdened with adult responsibilities, like worries about money. But it can in fact be very empowering to give your children skills and confidence with money, so that they don't have to face money worries in the future.”

My advice
Food shopping gives you the perfect opportunity and platform to introduce your children to money. Have them understanding how you budget each money for your shopping and the value of money are both valuable lesson they can learn for a life-time.

Have you had conversations about money yet? How did it go?

Follow them on Twitter and be kept update with their latest advice and resources:

Do you talk about money with your teenage children? We can help get you started: https://t.co/8ELx7u6Ulc
— Money Advice Service (@YourMoneyAdvice) March 22, 2015

These statistic were provided by moneyadviceservice.org.uk