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Parents play biggest role in savings habits

Parents play biggest role in savings habits

Parents have the biggest influence on how we manage money but most people believe that being good with finances can be learnt later in life, according to research from Santander.

The survey of 2,019 adults, which was carried out in February for Santander, found 43 per cent of Brits say their parents have been their biggest influencer on their money behaviour while 11 per cent attribute this to their partner.

However 78 per cent believe that being good with money is a learned behaviour that anyone can pick up with practice.

The survey was backed up with an experiment involving children that confirmed that they take after their parents in how they managed their money.

Helen Bierton, head of savings at Santander, said: “Our study and experiment reveal that those who receive good money advice at an earlier age usually take good habits into adulthood. Developing a savings habit – no matter how small – is really important as it not only provides a safety net but is a way of providing for your future, and those of your loved ones."

Barry Fromson, an adviser at Ascot Lloyd, said his experience backs up the research.

"You can see when you meet clients whether they have been brought up by disciplined parents, because maybe money has been tight and they have learnt values," he said.

He added that there were many examples of people who had completely changed their attitudes after getting into large credit card debt.

"I do believe you can reprogram yourself to do that if you are prepared to take the responsibility and accept the fact that they way you have been doing it in the past was broken," he said.

The Santander survey also revealed the most popular way to put money aside is in a savings account (53 per cent) followed by a cash Isa (27 per cent).

However, many Brits overlook investing as a way to manage their money with only one in 10 (12 per cent) saying they invest an utilise stocks and shares Isa.