American parents offer their kids lots of financial advice per year, according to a new poll—but they admit their guidance isn’t always implemented.
Indeed, respondents said their child listens only about half the time.
The survey of 5,000 parents over age 30, split evenly across all 50 states, asked about the type of financial advice they give their children and which areas parents feel knowledgable.
On average, kids are asking for financial advice multiple times per month, but parents are often giving unsolicited advice about five times a month, adding up to over 100 tips shared per year.
In the survey conducted by Talker Research on behalf of the international money app Wise, the findings showed that parents’ confidence levels vary widely.
When asked for financial advice, 36% said they feel “very” confident, while 34% said they are “somewhat” confident in the suggestions they provide.
From a list of 14 different financial areas, parents had the lowest confidence in assisting their child with currency conversion (11%), taking out/refinancing loans (13%), and sending money abroad (14%).
On the other hand, a majority of parents noted higher confidence in helping their child with budgeting their money (55%), managing savings options (52%) and navigating credit cards (41%), as well as understanding debt (32%) and credit scores (32%).
“Parents have to manage countless complex conversations as they prepare a child for adulthood,” said Ankita D’Mello, a Manager at Wise. “Finances are certainly top of the list, and international finance is one area where more education is essential.”
“As our lives become increasingly global, whether that’s a child studying abroad or sending money to family and friends in another country, the importance of managing money across borders is becoming more of a mainstay for parents and kids.”
40% of parents surveyed shared concerns their kids will “outgrow” the advice they are equipped to give. It’s why most of those surveyed (72%) want to further their financial knowledge.
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This may be due to the changing nature of how we manage our finances, as nearly three-quarters (74%) of respondents believe it’s become more complicated since they were a child.
When asked why they believe financial management has become more complicated, 48% of these respondents noted the internet makes it easy to search for financial information, but it’s hard to know what to trust.
The vast majority (79%) of parents said they’re open to new tools and resources to help them improve their financial knowledge, and nearly a quarter (22%) actively look for new services to use.
“With more financial information available now than ever before, it’s essential to work with providers that are established, affordable, convenient and transparent, especially when looking to move money internationally,” said D’Mello.
HOW CONFIDENT ARE PARENTS HELPING THEIR CHILD IN 14 FINANCIAL AREAS?
● Budgeting — 55%
● Savings options — 52%
● Credit cards — 41%
● Managing debt — 32%
● Managing credit score — 32%
● Insurance — 29%
● Financing a car — 29%
● Investments — 21%
● Mortgages — 16%
● Retirement planning (Roth vs. traditional IRAs, etc.) — 16%
● High-yield savings accounts — 15%
● Sending money abroad (i.e., sending money to friends or family internationally) — 14%
● Taking out/refinancing loans — 13%
● Currency conversions (i.e., exchanging money when traveling) — 11%
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