According to a new survey conducted by CreditCards.com and Yougov of 2,694 U.S. adults, roughly one in four adults say their parents didn’t teach them basic lessons regarding money.
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The bills and the fees
The kinds of lessons learned about money reported by 75% of respondents that actually got them were wide-ranging and informed by several interesting factors. Sixty-five percent were taught about the importance of saving, while 45% learned how to wisely spend their income. Thirty-eight percent learned about giving, and around a quarter learned how to borrow. A comparatively small minority of 22% of adults surveyed reported receiving lectures from their parents about investing. The gender of the child seemed to govern the character of advice given. For example, female adults reported being taught about the importance of giving much more than male respondents (40% vs. 35%). The latter of which was taught the value of investing much more frequently (25% vs. 19%).
Psychologist Debra A. Kaplan was asked to provide some insights on these “alarming” findings, the bulk of which was featured in the report itself. “Women are so afraid of money, and they believe their financial illiteracy is a permanent status.” Kaplan went on to say that baby boomer women were often taught that financial altruism would endear them to a partner as opposed to being instructed on investing their money and achieving monetary independence.
These numbers were additionally influenced by generation. The trend noted in the new report seems to suggest an upward trend of fiscal tutelage within families, considering Millennials were found to be taught about money a lot more frequently than the generation the precedes them. A mere 17% of baby boomers said their parents gave them the bills and the fees talk, compared to 26% of respondents between the ages of 23 and 38. Not this has yielded any obvious results. In The Millennial Economy 2018 survey, published by Ernst and Young, a third of the 1,200 young adult respondents featured sad that they expected their financial situation to be better than their parents, despite this scenario being fairly atypical.
The value of a dollar
Many parents attempt to instill valuable fiscal lessons by instating an allowance system, or they used to anyway. When surveyed on the matter in the report that debuted just this past Wednesday, less than half of American children under the age of 18 reported receiving an allowance. Barri Segal of Creditcards.com summarizes in the paper, “U.S. parents with children under 18 revealed only 40 percent of those kids get an allowance. And 1 in 4 respondents said their parents gave them no education on money topics while they were growing up.”
Of the lucky few that got an allowance, the median amount was about four dollars a week, with the majority of this demographic said they began to give their kid an allowance when they reached the age of eight. Sixty-one percent of parents paid their children in cash, which makes sense, but 10% paid their children with a cash app like Venmo, an additional 10% opts for to pay their child through a bank transfer, 10% use debit cards, and the remaining 9% reported providing their child with an allowance in another undisclosed manner. Ted Rossman, who is the senior industry analyst at Creditcards.com, closed the report with the following:
“Whether or not you choose to give your child an allowance is a personal decision, but you absolutely need to find ways to teach them about money. The subject is woefully undertaught by most schools, and personal finance is a critical life skill. As early as preschool, I recommend talking to your kids about things like needs versus wants, where money comes from and the value of a dollar.”
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