Adults have the tendency to mirror their parents’ money habits, both good and bad.
Almost 1 in 2 Hong Kong adults (46%) say that they are actively trying to go against their parents’ bad financial habits.
The survey by MoneySmart, which polled 1,000 Hong Kong adults, saw over half (52%) of the respondents indicating that their parents have a strong influence on their financial habits.
Mirror, mirror
Over 1 in 2 of the respondents were found to mirror their parents’ financial habits in later life: 53% of those whose parents overspend, and 54% of respondents whose parents shopped impulsively, stated that they have the same tendency.
About 58% of respondents who said that their parents have struggled with debt before also reported having struggled with debt themselves.
It’s the same case for good financial habits: 1 in 2 (52) of respondents believ ethat they have inherited good habits from their parents when it comes to managing their finances.
Almost 8 in 10 (78%) of those ewho said that their parents regularly save money each month do the same.
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Meanwhile, 7 in 10 respondents who said that their parents regularly budgeted also do the same.
This is because learning fundamental money habits can start in children for as early as 6 to 7 years old, and are often learnt from watching the way their parents behave with money either consciously or unconsciously, said Michelle Howell, a Singapore-based financial coach and expert for Frolic for Life.
“During our formative years, we tend to absorb and internalise what our parents do and say about money, with our parents’ spending or saving habits, adherence to societal norms, or unique money behaviours often shaping our own beliefs and behaviours,” Howell said.
Starting early
Over 7 in 10 (74%) of respondents said that their parents taught them how to manage their money as a child.
In fact, those who were taught how to manage their money as a child were 1.4 times as likely to report being financially secure in later life, the study found.
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The vast majority (75%) of Hong Kong adults believe that it is the responsibility of the parents to teach their children good money habits, such as saving and budgeting.
Almost the same share of adults (70%) stated that it’s important to teach children about financial products such as credit cards and personal loans, when appropriate to do so.
