Many students with poor budgeting skills feel they can turn to the Bank of Mom and Dad to help bail them out when they hit a rough patch, according to a new CIBC poll.
More than half – 51% – of students in post-secondary institutions have hit their parents up for additional cash after running out of money, and it doesn’t matter whether or not the parents can actually afford it.
“Some children are treating their parents as their personal ATM,” said CIBC managing director and head of wealth advisory services Sarah Widmeyer.
“But they need to understand that mom and dad may not always be willing or able to dispense extra cash.”
The poll found that students from households that make less than $75,000 annually are even more likely (52%) to ask for handouts as those from families that make $125,000 or more (48%).
The problem, Widmeyer said, is children are often not brought up to understand proper money management and budgeting.
Despite this, the survey found that 86% of parents believe they are good role models when it comes to money management.
“Clearly, being a good financial role model doesn’t mean your children will understand how to manage their own finances,” Widmeyer said.
“That’s why it’s so important to teach them the importance of balancing a budget in their early teens because it’s a much tougher lesson to learn when they are off living on their own for the first time in their teens.”
Getting kids involved in financial planning when they are young is important, she said. Some ways they can learn about budgeting is by helping plan a vacation budget or participating in paying monthly bills.
