Parents reveal how much they'd be willing to pay to stop their child's temper tantrum
Ramsey Solutions financial expert Chris Hogan on parents putting their retirement savings at risk by giving their adult children financial support.
If you could resolve your child's public temper tantrum with cash — would you open your wallet?
A recent survey from insurance broker Policygenius found that one in five parents would do just that. And 44 percent of parents who said they’d pay also said they’d be willing to spend $500 or more.
But giving in to a child’s temper tantrum is just “a short-term solution to a long-term problem,” Susan Newman, a social psychologist and author of “The Book of No,” told Policygenius.
“You’re essentially just paying your child off,” she said. “By paying the ransom you’re reinforcing the behavior.
Saying no will teach children resilience and how to deal with disappointment, Newman told the broker. It’ll also save parents money as their children get older.
Practicing good money habits also helps teach those good habits to children, Newman said, according to the report.
Policygenius said it surveyed 1,500 parents with children under 18 earlier this month. They also found that about 63 percent of parents have talked to their children about at least one major financial concept. Of those who did, budgeting was the most common concept discussed, followed by debt and charity.
But more than a third of parents surveyed also said they hadn’t talked about money with their children. The Department of Education has also released reports showing less than half of high school seniors have a solid understanding of economics.
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Vince Shorb, the CEO of National Financial Educators Council, previously told Fox Business that high schoolers aren’t the only ones who don’t understand economics.
“People don’t understand the basics about money,” he said. “In the U.S. it has to do with parents not talking about money, not bringing them into activities that involve money. At grocery stores you see children begging and throwing tantrums over wanting something and parents just cave instead of making it a teachable moment.”
Fox Business’ Kathryn Buschman Vasel contributed to this report.