This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Men Don't Listen, Then Need Money From Mom and Dad

NEW YORK (TheStreet) -- Women appear to be more financially independent than men, with boys more likely than girls to ignore or downplay financial advice from parents and other adults and more likely to be a financial drain on their parents when reaching adulthood themselves.

The data comes from Yodlee Interactive, a Redwood City, Calif., financial services firm. 

According to Yodlee, women have distinct advantages over men in all areas of financial independence:

Also see: 42% of New Parents Have No Money or Less Than $1,000 Saved

  • Women are 32% less likely than men to need their parents to bail them out financially.
  • Just 31% of women get financial support from mom and dad or in-laws, 10 percentage points lower than men.
  • Women are less likely to even live with their parents in adulthood, (25%, compared with 32% of men).

That carries on through middle age. The Yodlee survey says men 35-to-44 years of age are twice as likely to tap into their parents financial savings as women and more than three times as likely to take the "prodigal son" approach and move back home with mom and dad.

Why? Yodlee's data show men are about twice as likely to be unemployed, while women who live at home do so for altruistic, devoted reasons -- they are twice as likely to move back home to "take care of their parents."

To get younger men on an even keel, the prescription is simple, but challenging: Parents need to do a better job educating their children on money management issues in concrete terms, so sons especially won't ignore the advice.

Also see: More Complicated Modern Families Come With Financial Complications Too

"These results stress the need for more communication and education around financial independence, because ultimately if this learning doesn't start at home, it may result in a child never leaving home," says Joe Polverari, a general manager at Yodlee.

"Many people think that once you become an adult, you become financially self-sufficient," Polverari says. "This survey shows that this isn't always the case, as dependence on parents' financial help varies greatly among American adults."

It may appear an uphill climb, but parents need to teach their kids at an early age to start saving (opening a bank and an investment accounts are great 'real-world" ways to do that.) Parents should also want their kids on the dangers of debt (especially taking on too much debt, or living beyond their means, which is the fast path to creating life-long debt problems.)

The more financial knowledge a parent can convey, the less likely a child will become financially dependent later on in life. That's a victory on two fronts - it will give young adults much-needed financial support, and keep more money in mom and dad's savings account.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.64 0.00%
FB $118.57 0.00%
GOOG $698.21 0.00%
TSLA $241.80 0.00%
YHOO $36.53 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs