BALTIMORE, March 22, 2012 /PRNewswire/ -- The 2012 Parents, Kids & Money Survey from T. Rowe Price (NASDAQ-GS: TROW), which surveyed parents, and for the first time, their kids, reveals that kids ages 8 to 14 want to know more about money matters, particularly about saving and how to make money. Yet, while talking about money is generally encouraged, and 76% of parents are having money conversations with their kids at least somewhat often, survey findings indicate that parents are not doing enough to teach their kids basic financial lessons. The survey results, which are being released in recognition of Financial Literacy Month in April, also revealed that although kids give their parents a B+, parents were found to be lacking as financial role models.
"Kids are eager to learn, and if we want to put them on the right financial path, parents need to be open and honest about money, demonstrate better financial behaviors and spend the time teaching basic financial lessons the way they do other skills," says Stuart Ritter, CFP®, a T. Rowe Price senior financial planner and father of three. "While kids think their parents are good financial role models and do a good job teaching them about money, parental behavior suggests there's a lot of room for improvement. Parents don't need to be experts, but doing more to instill sound financial habits is crucial, especially given the uncertain financial future parents believe awaits their kids and if they don't want their kids to have the same financial regrets they do."
According to the survey, 77% of parents say they are not always honest with their kids about money-related items, with 15% not telling the truth at least weekly. Most commonly, 43% of parents report not being honest about how worried they really are about money, 32% tell their children they can't afford something when they really can, and 27% withhold information about the family's true financial situation.