Teaching Kids About Money Hard for Paycheck-to-Paycheck Parents

March 27, 2014, 6:08 PM UTC / Updated March 27, 2014, 6:08 PM UTC

By Sharon Epperson, CNBC

Parents want to be good financial role models for their children, but many face financial problems of their own and don't know where to start.

More than two-thirds of parents said they are "very or extremely concerned" about setting a good financial example for their children, according to a survey released this week by investment management firm T. Rowe Price. Yet 1 in 4 parents said they're "not good with money" so they don't think they should be the ones to teach their kids about it.

"Parents in huge amounts of debt or living paycheck to paycheck think they're least qualified to talk to their kids, when they may be most qualified," said Stacy Francis, a New York certified financial planner who is also founder of "Savvy Ladies," a nonprofit financial empowerment organization for women. "They can share what's been working and what's not been working."

More important is that they encourage good financial behavior, but that's not always easy to figure out.

"The relationship with parents, kids and money is pretty complicated," said Stuart Ritter, a certified financial planner with T. Rowe Price. "One of the things we learned from parents is they'll borrow money from their kids to tip the babysitter. Hopefully they're putting it back. And they're bribing their kids. They're using the money as a reward."

Nearly half of the 1,000 parents surveyed in the new T. Rowe Price report admit they bribe their kids with money to encourage them to do the right thing. And when parents run out of cash, almost one-third admitted they sometimes "borrow" money from their children’s piggy banks.

One great way to get the money conversation started is to give children a cash allowance, said Francis. "It's a good way for kids to start to learn responsibility — allowing them to spend a portion now, save some for a big goal, save some for college and give a portion to charity."

There can be many teachable moments, agrees Ritter. Parents just need to be more proactive to incorporate money matters into the conversation.

Sharon Epperson, CNBC

As CNBC's personal finance correspondent and senior commodities correspondent, Sharon Epperson reports on personal finance for the network and also covers the global energy, metals and commodities markets from the floor of the New York Mercantile Exchange.

In addition to reporting for CNBC and CNBC.com, Epperson is a regular contributor on NBC's Today and Today.comand appears frequently on NBC Nightly News, MSNBC and NBC affiliates nationwide. She also frequently reports for Public Television's "Nightly Business Report," which is now produced by CNBC.

Her book, "The Big Payoff: 8 Steps Couples Can Take to Make the Most of Their Money—and Live Richly Ever After," was a finalist for the Books for a Better Life Awards, honoring works that have "changed the lives of millions." She also was a contributing writer for "The Experts' Guide to Doing Things Faster."

Epperson's personal finance expertise has been featured in numerous publications, including USA Weekend, The Wall Street Journal, The Washington Post, The Boston Globe, Self, Essence, Ebony and Time, where she had covered business, culture, social issues and health as a correspondent prior to joining CNBC.

She is committed to improving financial literacy, particularly in underserved communities. She has been invited to the White House to speak about financial literacy and to moderate a public meeting of the President's Advisory Council on Financial Capability at the U.S. Treasury Department. She also speaks frequently at conferences and events for local and national organizations, colleges and universities about many facets of personal finance.

Epperson has received the Vanguard Award for her distinguished career in business and personal finance reporting from the National Urban League Guild, the All-Star Award from the Association of Women in Communications and the Gracie Allen Award from the American Women in Radio and Television for a series of reports on female CEOs. She also has won awards from the New York Festivals, the New York Association of Black Journalists and the National Association of Black Journalists.

An adjunct professor at Columbia University's School of International Public Affairs for more than a decade, Epperson enjoys teaching the importance of budgeting and building long-term savings as part of her course on professional development for graduate students interested in media careers.

Epperson received her bachelor's in sociology and government from Harvard University, and a master's of international affairs degree from Columbia University. A Pittsburgh native, Epperson lives with her husband and two children in Westchester County, N.Y.