Financial socialisation during early childhood in England: the influence of maternal attitudes and behaviours towards money

Abstract

Previous research indicates that ages three to seven are critical to children’s cognitive and financial development. By age seven, children’s financial attitudes and behaviours begin to set and their financial skills tend to differ according to their mother’s socio-economic status. However, most studies on financial literacy and family financial socialisation focus on children over the age of seven and rely on data collected prior to the global pandemic. In light of the ‘cost of living crisis’ and advances in financial technologies, this qualitative study explored how mother’s attitudes and behaviours towards money influence the way they financially socialise their four to six year old children post-pandemic. In semi-structured individual online interviews, eight university-educated mothers recruited via social media and living in the South of England were asked about their own childhood experiences with money, how they typically discuss financial topics with their young children and activities they do together. The results of a reflexive thematic analysis generated three main themes: 1) Natural selection of positive financial behaviours, 2) Age-appropriate conversations about money and 3) Cash(less) learning experiences. Interpreted together, these revealed how participants construct their economic realities around the concept of having ‘enough’ time, money and confidence to explicitly teach their children about cash and virtual money in ways that perpetuate socio-economic advantage. The findings highlight that digital financial services designed for children may enhance how mothers teach young children about money and contribute to their chances of achieving future financial wellbeing. These insights raise questions about the role of parents, the state and the private sector in improving children’s real-world financial skills from a young age.