Most parents worry social-media influence affects children’s spending habits
Canadian parents have flagged the rising impact of social media and finfluencers on their children’s financial behaviour.
According to the research from TD Bank Group, 61% of parents say they’re concerned about how social media, viral trends and influencer culture shape children’s attitudes toward money. To mitigate the risk, 99% of respondents intend to engage their children in discussions about digital money habits, and 58% plan to initiate these conversations by age 13.
“Social media is increasingly becoming a powerful force in our daily lives and – for better or for worse – kids are learning about money from their feeds as much as they are from their families,” says Kristy Irwin, Product Group Owner, Youth and Student at TD. “Financial literacy is evolving with digital culture and parents have an opportunity to help kids learn how to spend wisely and not impulsively.”
Almost all respondents believe that financial literacy is at least as critical as media or online literacy in today’s environment, yet only 43% feel confident about their child’s financial knowledge, exposing a clear mismatch between intent and preparedness.
The survey shows that parents view prevention of fraud and scams (75%), budgeting (71%) and saving and planning (70%) as the top three competencies they want their children to master.
Additionally, new forms of spending such as digital wallets, in-app purchases and subscription services, trigger mounting concern with 39% of parents worrying about how effortlessly children can buy with digital wallets, and 36% are uneasy about subscriptions and in-app spending.
The findings of the survey suggest that households are shifting from traditional one-way financial instruction to more collaborative dialogues.
For example, 82% of parents say they share both their successes and challenges with children, and 57% report their children have taught them something about money, especially via apps, digital wallets and investing trends.
“Financial skills aren’t just passed down – they are developed together,” adds Irwin. “Parents guide their children while also taking the opportunity to learn how younger generations think about saving and spending in a world that is rapidly changing.”
