The community, and especially the family, affects children’s traffic safety. Parents influence children’s current and future traffic behaviors. Numerous studies have demonstrated a relationship between parenting style and children’s behavioral problems such as antisocial behaviors and delinquency, so the modification of parenting styles could have a positive impact on the interactions between parents and children. In the literature on children’s traffic safety, parental influence has long been recognized as an important aspect of research, but parent-related factors are mostly unknown. In particular, a factor that can affect parents’ attitudes and children’s views of road safety is parenting style. Therefore, this study aims to examine children’s knowledge of traffic signs utilizing a parenting styles’ perspective. The determining role of demographic characteristics in traffic skills is critical and is investigated in this study. In this study, 1011 preschool, first-, second-, and third-grade students were interviewed and information about parenting styles and demographic characteristics were collected from questionnaires completed by parents. Through interviews, children’s familiarity with law enforcement and informative signs was assessed. Results indicated that older children and those with higher socioeconomic status had better skills in this field. The results also showed that parents could improve their children’s understanding of signs by less use of inconsistent discipline and corporal punishments. Parental negligence, contradictory use of corporal punishment, and nonuse of positive behaviors are some factors which are most likely related to children’s knowledge of traffic signs and rules. The findings of this study can guide parents and assist relevant authorities to implement policies to more effectively train young children by developing practical and targeted resources.