Financial education usually emphasizes the importance of earning and saving, but a recent study from the University of Arizona concluded that one of the most important lessons parents can teach their children about money is how to give it away.
Previous research has shown that children learn more about finance from their parents than from any other source.
This time, 115 participants were interviewed, including college students and their parents and grandparents. They were asked to tell what they learned about money from their parents. Parents of students, as well as their parents, also shared what they taught their children in this area, and thus provided a picture of how financial lessons are passed down from generation to generation.
The respondents were not asked to speak directly about financial assistance to others, but 83 percent of them highlighted this aspect as an important part of the financial education they received or gave.
Participants talked about their motives in teaching their children to participate in charity - among them were a sense of religious duty and a desire to help others. In general, they talked about three types of assistance:
- Charity - including financial donations to religious and charitable organizations.
- Good deeds are donations, gifts, or services given directly to those in need, such as food for the homeless or Christmas gifts for neighbors in need.
- Investing in a family is a financial decision of parents for the benefit of children - for example, spending money on sports activities for the child, music lessons, or family vacations.
Teaching children to give is important for two reasons, according to researchers.
Practically speaking, this is a good way for children to learn the basics of financial literacy and saving. For example, some participants from an early age had several piggy banks - one for saving, another for money for spending, and one for money that will be given to help others.
Learning to help others can also lay the foundation for a happier future, as generous people tend to be happier and have healthier relationships with others. Thus, it not only promotes correct financial behavior, but also a more favorable lifestyle.
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Parents involved in charity should draw the attention of their children to such actions of theirs, and even better - involve them in participation.
At the same time, children influence the financial behavior of parents. Parents understand that their children are watching and want to set a good example
Researchers were impressed by how many participants emphasized the importance of a willingness to sacrifice for others. The lessons in the field of finance do not talk about helping other people, but it turned out that such assistance is an important aspect of financial socialization, and it should be paid attention to during the training.
Author: Vadim Tarabarko