A recent study has unveiled the significant influence of parental financial behaviours on the money habits of Hong Kong adults, conducted by MoneySmart. The survey, involving 1,000 respondents, revealed that a substantial portion, 46%, are actively striving to break free from their parents' negative financial habits.
Parental Financial Habits and Offspring Behaviour
The study highlights how parental financial practices, such as overspending, impulsive shopping, and debt management, often serve as templates for the financial behaviour of their offspring. Notably, over half (52%) of the surveyed adults acknowledge the strong influence their parents have had on their financial habits.
Interestingly, the research reveals a clear correlation between parental and offspring financial behaviours. Adults whose parents exhibited tendencies to overspend or shop impulsively were found to be more likely to replicate these habits themselves. Similarly, a significant portion of respondents who reported their parents' struggles with debt also admitted to facing similar challenges.
Shaping Financial Mindsets from Childhood
Financial experts emphasize that these patterns often originate from childhood observations, where children internalize and emulate their parents' financial practices. Michelle Howell, a Financial Coach at Frolic for Life, highlights the subconscious absorption of money habits during formative years, suggesting that parental behaviours significantly shape individual beliefs and practices regarding money management.
However, the study indicates a nuanced approach among Hong Kong adults regarding their parents' financial legacy. While nearly half actively seek to deviate from negative patterns, a majority (56%) endeavour to adopt positive financial habits demonstrated by their parents.
Remarkably, the research emphasizes the pivotal role parents play in imparting financial knowledge and skills to their children. A staggering 74% of respondents reported being taught money management by their parents during childhood. Furthermore, those who received financial education as children were 1.4 times more likely to achieve financial security in adulthood.
The study identifies the top five financial lessons commonly passed down from parents, including creating savings plans, seeking good deals, timely debt repayment, expense tracking, and budgeting. Moreover, a significant majority of Hong Kong adults (75%) believe it is the responsibility of parents to instil sound money habits in their children, emphasizing the importance of teaching concepts like saving, budgeting, and financial product awareness.
