Half of young Australians choose same bank as parents, CUA survey finds
Half of young Australians choose the bank their parents use, bringing a whole new meaning to the phrase ‘bank of mum and dad,’ a new survey has found.
The survey, carried out by Credit Union Australia (CUA), found that 50% of Australians between the ages of 18 and 24 opt for the institution that their parents bank with, while almost the same percentage of Aussies (46%) overall felt their upbringing did not make them financially savvy.
The results shine a light on the role parents play in informing their children about money. They suggest that in many cases, Aussie kids are shielded from discussions about family finances.
Almost half of those asked said they never heard their parents talk openly about money, while nearly two-thirds said their parents kept money troubles from them.
When it comes to parents’ influence on their children’s future banking choices, Professor John Dawes from the University of South Australia’s School of Marketing said it’s not surprising that kids inherit some of their parents’ money habits.
“Research has found that children tend to use brands their parents use. Things like toothpaste, and it’s merely that they’ve been exposed to it and they’re familiar with it,” he said.
Professor Dawes explained that the same principles apply to financial literacy and decision making, and that this kind of parental influence often starts with a child’s first bank account around the age of 15. Convenience and familiarity are often the key factors which influence financial choices, he said.