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Kids Want More Guidance On Money Matters, Yet Parents Lacking As Financial Role Models, T. Rowe Price Survey Finds

Parents Believe Life on Other Planets More Likely Than Kids Having a Secure Financial Future: More parents feel that it is likely that life exists on other planets (59%) than Social Security will be available in its current form when their kids retire (26%) or that their children will become millionaires (39%).

Family Finances a Taboo Subject: Nearly one-third (32%) of parents say they avoid talking with their kids about the family's current financial situation.

Kids Say They Go to Moms First with Money Questions:  More than half (54%) of kids report they go to their moms first when they have a question about money, compared to 40% who go to their dads first.

Parents Don't Always Agree on Money Matters – and Kids Know It: Nearly half (46%) of parents say they don't always agree on money matters, and 42% of kids are aware of these disagreements.

Understanding of Investing Basics Lags – For Kids and Parents: When asked what gives money the best opportunity to grow over a long period of time, fewer than half of kids (48%) and parents (49%) chose stocks over bonds and a safe deposit box, with nearly a quarter (22%) of kids choosing the safe deposit box. Likewise, when asked the best way to diversify a wardrobe, only 59% of kids and 70% of parents correctly answered, "to buy clothing in several styles and colors." A quarter of the kids and 23% of parents chose "donate the clothes you don't wear," while 16% of kids and 7% of parents answered "rearrange the clothes by size."

Kids Grade Their Parents Higher as Role Models: Kids on average graded their parents a B+ as role models regarding saving and spending habits, with 44% giving them an A. Also, almost all kids (92%) think that their parents do a good job teaching them about money. Parents, however, graded themselves a B- on average, with only 17% giving an A and nearly one-third (31%) grading themselves a C or lower.

Parents Themselves Didn't Get a Strong Financial Foundation Growing Up: Many parents (39%) report that their own parents did not do a good job teaching them about money.

Parents' Financial Regrets Correspond to Core Financial Lessons: Knowing what they know now, parents say their biggest financial regrets are not saving enough (43%), spending too much/being in debt (32%), started saving too late (29%), wrong job/career choice (22%), and not setting financial goals (17%).

Kids Welcome Online Games as Teaching Tools:   Most kids (85%) think an online financial game would help them learn the basics about saving and spending.

The fourth annual T. Rowe Price Parents, Kids & Money Survey, conducted by MarketTools, Inc., aimed to understand the basic financial knowledge, attitudes and behaviors of both parents of children ages 8 to 14 and their children ages 8 to 14. The survey was fielded from February 17 through 24, 2012 with a sample size of 1,008 parents and 837 kids ages 8 to 14. The margin of error is +/- 5.0 percentage points.  Full results can be found under the Resources section at familyeducationmediakit.troweprice.com.

MEDIA NOTE: Stuart Ritter and other T. Rowe Price financial planners are available to discuss the survey and provide parents with additional tips on how to approach the topic of financial education. T. Rowe Price has developed a clever info-graphic illustrating the statistics of parents and their honesty when it comes to money matters.  The info-graphic can be found at familyeducationmediakit.troweprice.com .

Founded in 1937, Baltimore-based T. Rowe Price is a global investment management organization with $489.5 billion in assets under management as of December 31, 2011. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. More information is available at troweprice.com.

T. Rowe Price and Disney Enterprises, Inc. are not affiliated companies.

SOURCE T. Rowe Price

Stock quotes in this article: TROW 
Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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