When it comes to talking about money and saving, the lines of communication have gone dead between parents and children, shows a survey by investment managers T. Rowe Price.
Let your clients know their children have financial questions, and help them come up with answers.
The survey finds that 48% of parents admit to using bribery as a parenting tactic. That percentage rises to 55% of parents who classify themselves as spenders.
The survey also charted how often families talk about money. Parents were more likely to report having financial conversations than their children did. While 28% of parents responded that they talk to their kids about money very often, only 15% of children chose that answer. Conversely, 25% of children said they almost never talk with their parents about money, while only 5% of adults chose that response.
Money conversations were most often about back to school shopping and planning for vacations, while setting family saving goals was ranked fourth.
Kids also pick up on their parents’ reluctance to talk about money with them, and they don’t feel encouraged to bring the topic up themselves.
The topics children most want to learn about are:
- How bank and credit cards work
- How to manage money
- What things will cost (inflation)
- How to set a savings goal
- How to save and invest in different things (diversification)
- How the stock market and investing works
- Their families’ financial situations
For more survey information click here.