Teaching your child to give their money away may improve their personal well-being

When we're young, we're often told by our parents and those in positions of care that we need to be sensible with money.

While some may say you can only get a feel for money once you start really looking after it by yourself, you're usually taught to always have a little saved aside.

However, a study carried out at the University of Arizona may suggest that this isn't the most important financial lesson we should be imparting with our kids.

According to the study, published in the Journal of Family and Economic Issues, earning and saving money isn't as important as getting your kids involved with fundraising activities at as early an age as possible.

The research suggests that family socialization doesn't just influence our own generosity in terms of how much we donate; there also seems to be a correlation between this learned behavior and a child's personal well-being.

Through interviewing participants across three generations, researcher Ashley B. LeBaron explored how children learn to donate from their parents and how attitudes to such activities are passed down through generations.

Although the respondents weren't asked directly about any philanthropic activities, the majority of respondents identified this aspect as an important part of their upbringing and financial education.

"When you think about money and what kids learn about money from their parents, most of us wouldn't think about giving as one of the basic principles of finance," LeBaron said in a press release. "It was surprising but really cool, to see that giving was so prevalent."

The study participants described various motivations behind why they considered philanthropy to be an important part of raising their kids.

In addition to religious reasons, many parents also cited the desire to be helpful as a motivation, as well as wanting to give something back to society. When we're young, we're often told by our parents and those in positions of care that we need to be sensible with money.

While some may say you can only get a feel for money once you start really looking after it by yourself, you're usually taught to always have a little saved aside.

However, a study carried out at the University of Arizona may suggest that this isn't the most important financial lesson we should be imparting with our kids.

According to the study, published in the Journal of Family and Economic Issues, earning and saving money isn't as important as getting your kids involved with fundraising activities at as early an age as possible.

The research suggests that family socialization doesn't just influence our own generosity in terms of how much we donate; there also seems to be a correlation between this learned behavior and a child's personal well-being.

Through interviewing participants across three generations, researcher Ashley B. LeBaron explored how children learn to donate from their parents and how attitudes to such activities are passed down through generations.

Although the respondents weren't asked directly about any philanthropic activities, the majority of respondents identified this aspect as an important part of their upbringing and financial education.

"When you think about money and what kids learn about money from their parents, most of us wouldn't think about giving as one of the basic principles of finance," LeBaron said in a press release. "It was surprising but really cool, to see that giving was so prevalent."

The study participants described various motivations behind why they considered philanthropy to be an important part of raising their kids.
In addition to religious reasons, many parents also cited the desire to be helpful as a motivation, as well as wanting to give something back to society.

The study identified three particularly common themes with types of donation, the first and most popular being donations to religious or charitable organizations.

Many of the participants in the study also encouraged their children to donate directly to people in need.

Some of the interviewees explained that they went out of their way to get their children involved in these activities as part of an experimental learning experience, so they could understand the first-hand effects of charity.

That said, the study suggested that the most popular way of donating was within one's own family.

Making financial sacrifices for children, for example, in the form of travel or private music lessons, teaches them to place importance on less materialistic experiences as opposed to direct possession of money or other goods.

Generosity makes people happy

According to the researcher, learning to be willing to donate is important for several reasons.

There is the argument that children can learn the basics of business and saving: "If a certain percentage of your money goes toward giving, that's the start of a budget right there," said LeBaron.

The scientist also explained that philanthropic tendencies also helps people achieve personal happiness. "People who are generous tend to be happier and have healthier relationships, so this is shaping not only kids' finances but aspects of their health and well-being."

The study also showed that parents should demonstrate generosity towards their children too, in order to act as role models.

There are other things parents can do too, such as getting their kids involved in charitable causes in a more "hands-on" way.

LeBaron also suggested that people in educational roles should also be placing more emphasis on teaching generosity.

According to the researcher, the school should be a place where children can learn not just about budget planning but about philanthropy too.