Young adults significantly more likely to talk about money with their parents than past generations

UK families are opening up when it comes to conversations about money with their children, research by mutual insurer Royal London reveals.

Younger adults are significantly more likely to have talked about money matters with their parents when growing up compared to the generations that went before them.

Three in four (76%) 18-24-year-olds spoke to their parents about money matters when they were growing up. This compares to just 43% of those 65 or over, 52% of 55-64-year-olds and 58% of 45-54-year-olds.

Parents who talk to their children about money could make them more likely to be aware of considerations around day-to-day spending, as well as the need for longer-term savings habits.

The research also reveals that those in lower income households are least likely to have talked about money with their parents when growing up.

Just over half (54%) of those in households with an annual income of less than £20,000 talked about money with their parents as a child. This compares to 62% of people in households which earn between £40,000 to £59,000.

Those who now have an annual household income of over £100,000 a year are most likely to have spoken with their parents about money as a child (68%).

Cultural nuances also exist in UK households, with White British people being the least likely group to have talked to their parents about money as a child (56%). People of Indian heritage are most likely to have spoken with their parents about money as a child (80%).

Sarah Pennells, consumer finance specialist at Royal London, said:

“As a nation we have historically seen money as an uncomfortable conversation, but we are seeing that change. Talking about money matters openly when growing up can help children and young adults prepare themselves for dealing with finances once they leave home or start work. It’s great to see that younger generations don’t see talking about money as no-go area.”