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T. Rowe Price’s 10th Annual Parents, Kids & Money Survey

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T. Rowe Price’s tenth annual Parents, Kids & Money Survey revealed that “adulting” is harder for young adults who did not receive any financial education. Those who did not receive any financial education are less likely to have a budget, an emergency fund, and retirement savings. Most young adults (64%) are surprised at how little they knew about managing money once they had to start dealing with real-world finances. Learn more in this deck.

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T. Rowe Price’s 10th Annual Parents, Kids & Money Survey

  1. 1. 10TH ANNUAL PARENTS, KIDS & MONEY SURVEY Detailed Results
  2. 2. 2 Contents Saving for kids’ education Young Adult Survey Findings 3 Financial Education 4 Early Experience With Money and Finances 14 Current Finances 19 Cuts by Financial Education 36 Cuts by Parental Discussions 45 Respondent Profile 53 Parent Survey Findings 60 Household Finances 61 Household Debt 66 Emergency Fund 72 Retirement Savings 77 Parental Knowledge, Attitudes and Behaviors 84 Teaching Kids About Finances 92 Allowance 109 Respondent Profile 114 Objective and Methodology 117
  3. 3. YOUNG ADULT SURVEY FINDINGS
  4. 4. FINANCIAL EDUCATION
  5. 5. 5 41% 10% 33% 24% None of the above I had financial education in an after- school/weekend program/course Financial education was taught at school as part of the curriculum in one of my regular classes I had a specific class/course dedicated to financial education Financial Education Q7. Which of the following types of financial education did you receive when you were younger? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) N=590 Types of Fin. Ed. % One 88% Two 10% Three 2%
  6. 6. 6 14% 15% 31% 33% 38% 40% 51% 59% 60% 60% 71% Diversification Asset allocation Inflation Retirement savings Paying for college Insurance Investing Basic life budget skills Interest Credit and financing Banking 2% 37% 39% 28% 16% 10% 7% 3% 2% Don't recall In college 12th grade 11th grade 10th grade 9th grade 8th grade 7th grade 6th grade or earlier Courses Dedicated to Financial Education Q8. In what grade(s) did you have a specific class/course dedicated to financial education? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=242 (had specific course dedicated to financial education) Q9. What types of things did you learn about in your financial education classes? (check all that apply) # of Courses % One 74% Two 16% Three+ 10%
  7. 7. 7 12% 12% 27% 28% 30% 37% 47% 48% 57% 62% 66% Diversification Asset allocation Inflation Retirement savings Insurance Paying for college Investing Interest Credit and financing Basic life budget skills Banking 4% 21% 36% 34% 26% 20% 8% 7% 5% 4% 3% 2% Don't recall In college 12th grade 11th grade 10th grade 9th grade 8th grade 7th grade 6th grade 5th grade 4th grade 3rd grade Financial Education as Part of Another Course Q10. In what grade(s) were you when you had financial education as part of the curriculum in of your regular classes? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=334 (had financial education as part of a regular class) Q13. What types of things did you learn about in the financial education that was provided in a broader course? (check all that apply) # of Courses % One 65% Two 20% Three+ 15%
  8. 8. 8 6% 38% 19% 23% 11% 4% Don't recall More than a month 3-4 weeks 1-2 weeks More than one lesson, but less than a week One lesson 12% 11% 15% 18% 26% 37% 46% Other Media Science Technology Social studies Family and consumer sciences Math Financial Education as Part of Another Course Q11. Which regular classes included financial education as part of the curriculum? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=334 (had financial education as part of a regular class) Q12. For how long did the financial education you received within a broader course last?
  9. 9. 9 12% 12% 13% 30% 36% 36% 44% 45% 52% 52% 55% Asset allocation Inflation Diversification Retirement savings Insurance Interest Basic life budget skills Investing Paying for college Credit and financing Banking 6% 26% 37% 28% 18% 12% 8% 7% 7% 3% 6% 3% Don't recall In college 12th grade 11th grade 10th grade 9th grade 8th grade 7th grade 6th grade 5th grade 4th grade 3rd grade After-School/Weekend Financial Education Q14. In what grade(s) were you when you had financial education in an after-school/weekend course? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=97 (had financial education in an after-school/weekend course) Q16. What types of things did you learn about in the financial education that was provided in an after-school/weekend course? (check all that apply) # of Courses % One 66% Two 21% Three+ 13%
  10. 10. 10 3% 32% 23% 16% 9% 16% Don't recall More than a month 3-4 weeks 1-2 weeks More than one class, but less than a week One class After-School/Weekend Financial Education Q15. For how long did the financial education you received in an after-school/weekend course last? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=97 (had financial education in an after-school/weekend course)
  11. 11. 11 13% 13% 28% 30% 36% 41% 50% 52% 60% 62% 69% Asset allocation Diversification Inflation Retirement savings Insurance Paying for college Investing Interest Credit and financing Basic life budget skills Banking 44% 34% 33% 22% 16% 8% 5% 4% 3% 2% 2% In college 12th grade 11th grade 10th grade 9th grade 8th grade 7th grade 6th grade 5th grade 4th grade 3rd grade Grades & Topics Across All Types of Fin Ed Q8, Q10, Q14. In what grade(s) were you when you had financial education? (Check all that apply) Q9, Q13, Q16. What types of things did you learn about in the financial education? (Check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=590 (Had financial education classes)
  12. 12. 12 25% 63% 12% Frequently Occasionally Never 2% 40% 58% Below average Average Above average Financial Education Performance and Utility Q18. What grades did you usually get in your financial literacy courses? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=590 (had financial education classes) Q17. Currently, how often do you rely on information you learned in your financial literacy classes?
  13. 13. 13 53% 64% 72% 73% 76% 78% 84% Despite taking a financial literacy course, I don’t feel prepared for the financial responsibility that comes with adulthood Having financial literacy courses when I was younger impacted my decisions about college Having financial literacy classes sparked me to want to learn more about money and finances I wish my financial literacy course covered more than it did My financial literacy courses helped me to develop good financial behaviors/habits Having financial literacy classes made me much more aware of money and how finances work I’m very glad that I had financial literacy courses when I was younger Attitudes About Financial Education Q19. How much do you agree or disagree with each of the following statements? (displaying percent who agree) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=590 (had financial education classes)
  14. 14. 14 8% 12% 27% 20% 34% What I learned in financial literacy courses had a lot more influence What I learned in financial literacy courses had a little more influence They had equal influence What I learned from my parents had a little more influence What I learned from my parents had a lot more influence Influence of Financial Education Q20. Which had a stronger influence on your financial habits and behaviors, what you learned from your parents or what you learned in financial literacy courses? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=590 (had financial education classes)
  15. 15. EARLY EXPERIENCE WITH MONEY AND FINANCES
  16. 16. 16 13% 24% 11% 25% 12% 11% 6% 5% 2% 2% 2% Don't recall 18 17 16 15 14 13 12 11 10 < 10 Age You First… Q21. Started earning money T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) 13% 24% 11% 15% 8% 5% 4% 4% 2% 2% 12% Don't recall 18 17 16 15 14 13 12 11 10 < 10 Q22. Got a savings account 11% 34% 15% 21% 7% 5% 2% 2% 1% 1% 2% Don't recall 18 17 16 15 14 13 12 11 10 < 10 Q23. Got a checking account
  17. 17. 17 29% 18% 7% 18% 12% 9% 7% Eleven or older Ten Nine Eight Seven Six Five or younger 39% 53% 8% No Yes, but had to earn it Yes, no requirements Allowance Q24. Did you get an allowance when you were a kid? Q25. How old were you when you started getting allowance? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) N=609
  18. 18. 18 30% 9% 11% 10% 6% 14% 3% 6% 4% 2% 4% Fifteen or older Fourteen Thirteen Twelve Eleven Ten Nine Eight Seven Six Five or younger 5% 12% 9% 27% 33% 14% Once a day or more A few times a week Once a week A few times a month Once a month or less Never Financial Discussions With Parents Q26. How often did your parents discuss financial topics with you when you were younger? Q27. How old were you when your parents started discussing financial topics with you? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (Total respondents) N=857
  19. 19. 19 5% 5% 5% 10% 16% 15% 20% 23% 33% 41% 35% 15% 18% 22% 26% 28% 38% 37% 43% 39% 40% 47% Asset allocation Diversification Inflation Retirement savings Investing Interest Insurance Credit and financing Paying for college Basic life budget skills Banking Frequently Occasionally Q28. How often did your parents discuss each of the following with you when you were a teenager? (four-point scale – displaying frequently or occasionally) Financial Discussions With Parents T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=857 (parents discussed financial topics) 82% 81% 72% 66% 57% 53% 44% 36% 27% 23% 20%
  20. 20. CURRENT FINANCES
  21. 21. 21 44% 31% 16% 9% No, I do not receive any financial support from my family Yes, my family covers some of my expenses Yes, my family covers most of my expenses Yes, my family covers all of my expenses Family Financial Support Q32. Are you currently receiving any kind of financial support from your parents or other family members? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  22. 22. 22 46% 54% I budget for expenses only I include savings as a line item in my budget 23% 77% No Yes Budgeting Q33. Do you have a budget? Q34. Which of the following best describes how you approach your budget? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) N=772
  23. 23. 23 8% 19% 28% 46% Not sure Both were spenders Both were savers One was a saver and one was a spender 12% 40% 35% 14% Definitely a saver More of a saver than a spender More of a spender than a saver Definitely a spender Saving vs. Spending Q35. Would you consider yourself more of a saver or a spender? Q36. Would you consider your parents/guardians to be savers or spenders? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  24. 24. 24 46% 54% No Yes Financial Goals Q37. Are you currently working toward any financial/savings goals? Open-end responses: type of goal T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) N=539 2% 2% 3% 4% 4% 5% 11% 11% 12% 12% 16% 16% Emergency fund Invest Retirement Move Purchase Vacation Specific dollar amount College Car Pay off debt House General saving
  25. 25. 25 46% 16% 38% Both equally Experiences Material goods Goods vs. Experiences Q38. What do you tend to spend your money on more? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  26. 26. 26 4% 56% 40% I have no interest in owning a car I own a car I would like to own a car when the time is right 8% 15% 78% I have no interest in owning a home I am a homeowner I would like to own a home when the time is right Owning a Car and Home Q39. What is your attitude toward owning a home? Q40. What is your attitude toward owning a car? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  27. 27. 27 33% 41% 42% 48% 51% 53% 55% 57% 64% 67% 73% 78% Talking about money was taboo in my family when I was growing up My parents seemed reluctant to talk to me about money and finances My parents generally bought me whatever I wanted My parents fought about money a lot when I was growing up The Great Recession caused my family to adapt our spending and saving habits I’m more conservative with money than my parents I spend too much of my money going out and on things I don’t need Seeing my parents deal with the Great Recession has made me more conservative with my money Once I had to start dealing with real-world finances, I was surprised at how little I knew about managing money My parents let me manage my own money when I was a kid I’m good with money and finances My parents often emphasized the importance of saving money Attitudes About Finances Q41. How much do you agree or disagree with each of the following statements? (displaying percent who agree) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (Total respondents)
  28. 28. 28 6% 5% 7% 8% 10% 11% 13% 16% 17% 71% 81% None of the above IRA CD College savings account for my kids 401(k) with previous employer Savings bond Investment account College savings account for myself 401(k) with current employer Savings account Checking account Financial Accounts Q42. Which of the following types of accounts do you have? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)  Of the 412 respondents who are currently employed full time, 128 (31%) have a 401(k) account with their current employer
  29. 29. 29 3% 15% 38% 45% All of the money was contributed by parents/family members Most of the money was contributed by parents/family members Some of the money was contributed by parents/family members None of the money was contributed by parents/family members Family Contribution to Financial Accounts Q43. With regard to your financial accounts, how much of the money you have was contributed by your parents or other family members? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=940 (have financial accounts)
  30. 30. 30 59% 33% 8% I've never had a retirement account No Yes Withdrawing From Retirement Accounts Q44. Have you ever taken money out of a retirement account? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  31. 31. 31 52% 48% No Yes 14% 46% 39% I have no interest in saving for retirement because it’s so far away I would like to save for retirement but I don’t have the money to do so Saving for retirement is an important priority so I’ll find a way to save Emergency Fund and Retirement Savings Q45. What statement best characterizes your attitude toward saving for retirement? Q46. Do you have an emergency fund? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  32. 32. 32 8% 3% 9% 11% 22% 18% 29% 30% or more 25% to 29% 20% to 24% 15% to 19% 10% to 14% 5% to 9% Less than 5% Contributions to Savings Q47. Including retirement savings, what percent of your income do you put toward savings? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  33. 33. 33 6% 12% 17% 18% 15% 32% I have carried credit card debt for as long as I can remember I have used credit cards regularly to finance things I can’t immediately afford I have used credit cards occasionally to finance things I can’t immediately afford I rarely carry a balance on my credit cards I never carry a balance on my credit cards I don’t have credit cards Use of Credit Cards Q48. Which statement best characterizes your use of credit card financing? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  34. 34. 34 34% 15% 21% 27% 12% 14% 8% None of the above Other Car loan Credit card debt Friend/relative debt Medical debt Payday loan 51% 19% 30% No Yes, I will have student loan debt Yes, I currently have student loan debt Types of Debt Q49. Do you (or will you) have student loan debt? Q50. Which of the following types of debt do you have? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  35. 35. 35 4% 6% 24% 66% All of it Most of it Some of it None of it Family Contribution to Debt Payment Q51. How much of your current debt is paid for by your parents or other family members? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=658 (currently have debt)
  36. 36. 36 25% 27% 38% 43% 64% 65% 68% 86% Without credit cards, I would not be able to cover my monthly expenses I’ve lost track of how much I spend monthly on subscriptions like Netflix, Spotify, and other subscription services I don’t make enough money to cover what I spend My parents kept a pretty close eye on my money and what I did with it My parents were often stressed about money My parents were good role models when it came to money and finances I wish I was more financially independent I think financial literacy course should be required in all schools Attitudes About Finances Q52. How much do you agree or disagree with each of the following statements? (displaying percent who agree) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  37. 37. CUTS BY FINANCIAL EDUCATION
  38. 38. 38 47% 57% I include savings as a line item in my budget 28% 72% 19% 81% No Yes Had Financial Education Did Not Have Financial Education Budgeting Q33. Do you have a budget? Q34. Which of the following best describes how you approach your budget? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) N=772 = Statistically significant difference at alpha=.05
  39. 39. 39 67% 77% I’m good with money and finances Had Financial Education Did Not Have Financial Education Attitudes About Finances Q41. How much do you agree or disagree with the following statement? (displaying percent who agree) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05
  40. 40. 40 38% 55% Yes 35% 42% Saving for retirement is an important priority so I’ll find a way to save Had Financial Education Had No Financial Education Emergency Fund andRetirement Savings Q45. What statement best characterizes your attitude toward saving for retirement? Q46. Do you have an emergency fund? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05
  41. 41. 41 70% 27% 52% 37% I've never had a retirement account No Had Financial Education Had No Financial Education Withdrawing From Retirement Accounts Q44. Have you ever taken money out of a retirement account? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05  48% of young adults who had financial education have retirement savings, compared with 30% of those who did not have financial education.
  42. 42. 42 10% 4% 3% 8% 8% 67% 84% 2% 9% 11% 16% 21% 73% 79% None of the above CD College savings account for my kids Investment account College savings account for myself Savings account Checking account Had Financial Education Had No Financial Education Financial Accounts Q42. Which of the following types of accounts do you have? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05
  43. 43. 43 59% 39% Less than 10% Had Financial Education Had No Financial Education Contributions to Savings Q47. Including retirement savings, what percent of your income do you put toward savings? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05
  44. 44. 44 10% 16% 19% 26% 32% 43% 48% 56% 65% 75% 79% 26% 26% 32% 42% 52% 59% 63% 72% 75% 84% 85% Asset allocation Diversification Inflation Retirement savings Investing Interest Insurance Credit and financing Paying for college Basic life budget skills Banking Had Financial Education Did Not Have Financial Education Q28. How often did your parents discuss each of the following with you when you were a teenager? (four-point scale – displaying frequently or occasionally) Financial Discussions With Parents T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=857 (parents discussed financial topics) = Statistically significant difference at alpha=.05
  45. 45. 45 41% 47% 47% 49% 33% 35% 40% 40% Insurance Basic life budget skills Investing Credit and financing Had Financial Education Did Not Have Financial Education Desired Discussions With Parents Q29. Now that you’re older, what do you wish your parents had discussed more with you? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05
  46. 46. CUTS BY PARENTAL DISCUSSIONS
  47. 47. 47 51% 59% I include savings as a line item in my budget 73% 88% Yes Yes No Budgeting Q33. Do you have a budget? Q34. Which of the following best describes how you approach your budget? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) N=772 = Statistically significant difference at alpha=.05 Parents Discussed Financial Topics
  48. 48. 48 43% 60% Yes 37% 45% Saving for retirement is an important priority so I’ll find a way to save Yes No Emergency Fund and Retirement Savings Q45. What statement best characterizes your attitude toward saving for retirement? Q46. Do you have an emergency fund? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 Parents Discussed Financial Topics
  49. 49. 49 64% 29% 44% 42% I've never had a retirement account No Yes No Withdrawing From Retirement Accounts Q44. Have you ever taken money out of a retirement account? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 Parents Discussed Financial Topics
  50. 50. 50 7% 6% 12% 83% 2% 14% 25% 76% None of the above College savings account for my kids College savings account for myself Checking account Yes No Financial Accounts Q42. Which of the following types of accounts do you have? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 Parents Discussed Financial Topics
  51. 51. 51 52% 34% Less than 10% Yes No Contributions to Savings Q47. Including retirement savings, what percent of your income do you put toward savings? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 Parents Discussed Financial Topics
  52. 52. 52 12% 15% 19% 25% 30% 42% 49% 58% 66% 76% 80% 39% 38% 46% 60% 77% 81% 76% 84% 85% 90% 88% Asset allocation Diversification Inflation Retirement savings Investing Interest Insurance Credit and financing Paying for college Basic life budget skills Banking Yes No Q28. How often did your parents discuss each of the following with you when you were a teenager? (four-point scale – displaying frequently or occasionally) Financial Discussions With Parents T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=857 (parents discussed financial topics) = Statistically significant difference at alpha=.05 Parents Discussed Financial Topics
  53. 53. 53 41% 44% 46% 48% 22% 29% 33% 32% Insurance Basic life budget skills Investing Credit and financing Yes No Desired Discussions With Parents Q29. Now that you’re older, what do you wish your parents had discussed more with you? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 Parents Discussed Financial Topics
  54. 54. RESPONDENT PROFILE
  55. 55. 55 47% 50% 3% Male Female Not Male or Female Respondent Profile 38% 24% 19% 19% South Midwest West Northeast Q2. RegionQ1. Age Q3. Gender 10% 13% 13% 14% 15% 15% 19% 18 19 20 21 22 23 24 70% 13% 16% 5% 3% White/Caucasian Hispanic/Latino Black/African American Asian Native American Q4. Race/Ethnicity (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  56. 56. 56 5% 8% 14% 7% 6% 8% 14% 11% 10% 9% 9% $100,000 or more $75,000 to less than $100,000 $50,000 to less than $75,000 $40,000 to less than $50,000 $35,000 to less than $40,000 $30,000 to less than $35,000 $25,000 to less than $30,000 $15,000 to less than $20,000 $10,000 to less than $15,000 $5,000 to less than $10,000 Less than $5,000 25% 34% 41% Not currently employed Employed part-time Employed full-time Employment Status and Income Q5. What is your current employment status? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents) Q6. What is your annual personal income? N=749
  57. 57. 57 2% 11% 12% 23% 10% 5% 5% 32% Other Own my own home Rent – live alone Rent – live with others Live in college housing Live with other family members Was on my own, but now back living with parents Still live with parents Current Living Arrangements Q55. What are your current living arrangements? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  58. 58. 58 23% 3% 30% 32% 66% None of the above Other Rent Utilities Food Paying for Expenses Q56. Which of the following expenses do you contribute to on a regular basis? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=420 (live with parents or other family)
  59. 59. 59 4% 4% 21% 34% 33% 4% Graduate degree Currently in graduate school College degree Currently in college High school diploma Currently in high school Education Q54. What is the highest level of education you’ve completed? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  60. 60. 60 5% 13% 82% Two or more One None 1% 15% 84% Divorced/separated Married Single Marital Status and Children in Household Q57. What is your current marital status? Q58. How many children do you have? T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (total respondents)
  61. 61. PARENT SURVEY FINDINGS
  62. 62. HOUSEHOLD FINANCES
  63. 63. 63 31% 69% No Yes Household Budget Q20. Do you have a household budget? 53% 47% I budget for expenses only I include savings as a line item in my budget Q21. Which of the following best describes how you approach your budget? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents) N=702
  64. 64. 64 20% 27% 33% 48% Lack of financial knowledge Tax reforms Political environment Health care costs Concern About Financial Security Q22. How much do each of the following cause you to worry about your financial security? (five-point scale – displaying very much or extremely) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  65. 65. 65 20% 24% 26% 26% 36% 40% 45% 65% 70% 74% 78% 86% I’ve lost track of how much I spend monthly on subscriptions like Netflix, Spotify, and other subscription services I hide purchases from my spouse so he/she doesn’t know how much I spend Without credit cards I would not be able to cover my monthly expenses I have a household budget, but I rarely look at it My spouse and I don’t agree on how to budget for the household I don’t make enough money to cover what I spend When managing my finances, I always make sure that I pay myself first by including savings in the budget I rarely carry cash anymore I wish that I received more financial education in school Following a budget has helped my financial situation I have taken measures to cut back spending in the last year I love hunting for bargains, promo codes and clipping coupons Attitudes and Behaviors Q23. How much do you agree or disagree with the following statements? (displaying percent who agree) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  66. 66. 66 5% 16% 20% 59% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Keeping Financial Secrets Q65. How much do you agree or disagree with the following statements? I keep financial secrets from my spouse/partner. 21% Agree T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=775 (married)
  67. 67. HOUSEHOLD DEBT
  68. 68. 68 14% 14% 22% 15% 18% 17% I have carried credit card debt for as long as I can remember I have used credit cards regularly to finance things I can’t immediately afford I have used credit cards occasionally to finance things I can’t immediately afford I rarely carry a balance on my credit cards I never carry a balance on my credit cards I don't have credit cards Use of Credit Cards Q12. Which statement best characterizes your use of credit card financing? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  69. 69. 69 68% 18% 14% No, I've never considered it No, but I've considered it Yes Bankruptcy Q14. Have you ever declared personal bankruptcy? 56% 44% No Yes Q15. Do your kid(s) know that you once declared bankruptcy? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents) N=140
  70. 70. 70 10% 3% 4% 7% 8% 22% 24% 45% 49% 53% I don't have any debt Other Student loan (from kid's education) Payday loan Friend/relative debt Medical debt Student loan (from parent's education) Car loan Mortgage Credit card debt Types of Debt Q14. Which of following types of debt do you have? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  71. 71. 71 25% 21% 28% 26% More than 5 years 3-5 years 1-2 years Less than a year Carrying a Credit Card Balance Q17. How long have you been carrying a balance on credit cards? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=534 (have credit card debt)
  72. 72. 72 6% 8% 14% 20% 32% 19% $20,000 or more $15,000 to $19,999 $10,000 to $14,999 $5,000 to $9,999 $1,000 to $4,999 Less than $1,000 Amount of Credit Card Debt Q18. What is the approximate balance (i.e., the amount you still owe) on all your credit cards now? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=534 (have credit card debt)
  73. 73. EMERGENCY FUND
  74. 74. 74 27% 34% 35% 47% 50% None of the above Money saved for kids’ college education Money saved for other goals An emergency fund to cover unexpected expenses Money saved for retirement Savings Accounts 24. Which of following do you have? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  75. 75. 75 8% 7% 9% 3% 7% 18% 20% 27% More than 12 months Seven to 12 months Six months Five months Four months Three months Two months One month or less Size of Emergency Fund Q27. For how many months would your emergency fund cover your family’s expenses? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=471 (have an emergency fund) 12% 23% 19% 29% 16% $40,000 or more $10,000 to $39,999 $4,000 to $9,999 $1,000 to $3,999 Less than $1,000 Q26. Approximately how much money do you currently have in your emergency fund?
  76. 76. 76 36% 64% No, I do not maintain a separate account for my emergency fund Yes, I maintain a separate account for my emergency fund Separate Emergency Fund Account Q28. Do you maintain a separate account for your emergency fund, or is it kept in an account with other funds? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=471 (have an emergency fund)
  77. 77. 77 30% 3% 9% 10% 18% 23% 31% 1% 3% 3% 4% 6% 14% 16% 16% 18% Nothing Other To cover expenses while unemployed To pay taxes Health care costs Home repair/renovation Car purchase or repair Wedding Childcare/daycare Kid's college education Down payment on a home Kids' primary education Day-to-day expenses Pay off debt Vacation Holiday spending Using the Emergency Fund Q29. What types of things have you used emergency fund money for in the past two years? (check all that apply) Emergencies Non-emergencies T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=471 (have an emergency fund)
  78. 78. RETIREMENT SAVINGS
  79. 79. 79 3% 12% 12% 16% 27% 31% 33% 78% Other Taxable investment account Certificate of deposit (CD) Annuity or life insurance policy Roth IRA Regular savings account Traditional IRA 401(k) plan Retirement Accounts Q31. What types of accounts do you have for your retirement savings? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=502 (have retirement savings)
  80. 80. 80 Amount of Retirement Savings 14% 15% 15% 14% 23% 19% $400,000 or more $200,000 to $399,999 $100,000 to $199,999 $50,000 to $99,999 $11,000 to $49,999 Less than $10,000 Q30. Approximately how much money do you currently have in your retirement savings? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=502 (have retirement savings)
  81. 81. 81 41% 59% No Yes Mixed Retirement Accounts T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=175 (have regular savings or taxable investment accounts for retirement savings) Q32. Do the regular savings or taxable investment accounts you use for retirement savings also have money that is not going to be used for retirement?
  82. 82. 82 1% 7% 16% 76% Five times or more Two to four times Once Never Q33. How many times have you taken money out of your retirement savings in the past two years? Using Money From Retirement Accounts T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=486 (have retirement savings and not retired)
  83. 83. 83 3% 15% 15% 16% 16% 19% 7% 8% 8% 9% 10% 12% 14% 16% 18% 31% Other To pay taxes Health care costs To cover expenses while unemployed Car purchase or repair Home repair/renovation Childcare/daycare Wedding Kids' college education Kids' primary education Holiday spending Vacation Replenish emergency fund Down payment on a home Day-to-day expenses Pay off debt Using Money From Retirement Accounts Q34. Which of the following things have you paid for with money taken from retirement savings in the past two years? (check all that apply) Emergencies Non-emergencies T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=118 (have taken money out of retirement savings)
  84. 84. 84 20% 36% 27% 17% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Anxiety About Saving for Retirement Q44. How much do you agree or disagree with the following statement? Conversations about saving for retirement usually fill me with a lot of anxiety. 56% Agree T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  85. 85. PARENTAL KNOWLEDGE, ATTITUDES, AND BEHAVIORS
  86. 86. 86 58% 28% 19% None of the above Financial education was taught at school as part of the curriculum in one of my regular classes A specific class/course dedicated to financial education Financial Education Q59. Which of the following types of financial education did you receive in school? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  87. 87. 87 10% 41% 31% 28% 23% 19% 12% 8% 6% 5% 3% 3% Don't recall In college 12th grade 11th grade 10th grade 9th grade 8th grade 7th grade 6th grade 5th grade 4th grade 3rd grade Courses Dedicated to Financial Education Q60. When did you receive any type of financial education at school? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  88. 88. 88 23% 54% 54% 58% Investing Managing expenses Budgeting Money Parents’ Financial Knowledge Q57. Overall, how knowledgeable are you about each of the following? (five-point scale – displaying very or extremely) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  89. 89. 89 19% 3% 8% 8% 16% 24% 29% 30% 33% 43% None of the above Roboadvisor Books or other materials by celebrity spokespeople Social media Financial news channels Traditional financial advisor Financial websites or apps Friends Parents Google/my own research Financial Resources Q58. When it comes to financial matters, which of the following do you consult? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  90. 90. 90 18% 9% 8% 10% 25% 27% 37% 53% None of the above Told my kids we have more money than we really do Used money my kids have received as gifts to buy something for myself Showed financial statements to my kids Told my kids we have less money than we really do Told my kids we can’t afford things when we really can Been short with my kids because I am stressed about money Used money as incentive for good grades or good behavior Parental Behaviors Q51. Which of the following things have you done? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  91. 91. 91 21% 35% 52% 56% 56% I have borrowed from my kids’ “piggy bank” without paying them back I have gone into debt to pay for something my kids wanted I sometimes feel ashamed that I’m not providing enough for my kids I spend too much money on my kids for things they don’t really need I worry that I spoil my kids Parental Attitudes and Behaviors Q63. How much do you agree or disagree with the following statements? (displaying percent who agree) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  92. 92. 92 Parents’ Knowledge of Saving and Investing 25% 31% 42% 43% 62% Stocks are generally less risky investments than bonds A 50 year old shouldn’t put any of their retirement money in stocks because stocks can lose money Having an emergency fund to cover one or two months' living expenses is sufficient If I save 6% of my income toward retirement each year, I’ll have enough money to comfortably retire at age 65 What investments you choose (e.g., what stock, bond, or mutual fund) matters more than how much money you invest Q45. Please indicate whether each of the following statements is true or false (displaying percent saying true) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  93. 93. TEACHING KIDS ABOUT FINANCES
  94. 94. 94 2% 7% 6% 27% 36% 22% Once a day or more A few times a week Once a week A few times a month Once a month or less Never Frequency of Financial Discussions Q46. Overall, how often do you discuss any financial topics (e.g., the importance of saving and spending wisely, setting financial goals, budgeting, etc.) with your kids? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  95. 95. 95 8% 16% 75% I set aside time to specifically discuss financial topics The kids usually come to me with a question I bring things up as they occur Types of Financial Discussions Q47. Which of the following best describes how you discuss financial topics with your kids? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=786 (have financial discussions with kids)
  96. 96. 96 7% 7% 28% 24% 34% Extremely reluctant Very reluctant Somewhat reluctant Not very reluctant Not at all reluctant Reluctance to Discuss Financial Matters Q48. How reluctant are you to discuss financial matters with your kids? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  97. 97. 97 4% 7% 14% 19% 18% 23% 26% 40% 46% 16% 20% 31% 29% 42% 45% 42% 46% 41% Market volatility Digital payment methods like PayPal and Venmo The value of long-term investing Not talking about money in public Giving to charity Setting financial goals Maintaining a budget How to earn money The importance of saving Frequently Occasionally Importance of Financial Discussions Q49. How often do you discuss each of the following with your kids? (four-point scale – displaying frequently or occasionally) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  98. 98. 98 18% 21% 21% 22% 24% 25% 26% Politics Terrorism Money Death Drugs Bullying Sex Uncomfortable Discussions Q50. How uncomfortable are you discussing each of the following with your kids? (five-point scale – displaying very or extremely) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  99. 99. 99 45% 30% 25% No difference Girls Boys Kids Asking Questions Q53. Based on your experience, who asks about money more? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=446 (have both boys and girls)
  100. 100. 100 52% 25% 23% No difference Girls Boys Talking to Boys and Girls Q54. Do you find that you spend more time talking about money with your boy(s) or girl(s)? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=446 (have both boys and girls)
  101. 101. 101 Talking to Boys and Girls Q55. Why do you talk more with your [boy(s) or girl(s)]? (check all that apply) 10% 6% 23% 46% 38% 52% 6% 14% 20% 49% 51% 57% They play on financial games or apps more They are more likely to have more money to manage They need more help with money They are older They seem more interested They ask more questions Girls Boys Talk More to: = Statistically significant = .05 level T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=214 (talk more to boys or girls)
  102. 102. 102 39% 48% 51% 79% I often miss opportunities to talk to my kids about money and finances I don’t always know the best way to talk to my kids about financial topics Opportunities to talk to my kids about money and finances come up almost every day The conversations I have with my kids about finances make a difference Attitudes About Financial Discussions Q56. How much do you agree or disagree with the following statements? (displaying percent who agree) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  103. 103. 103 9% 2% 34% 36% 37% 37% 41% 51% 52% None of the above Other Figuring out the amount of sales tax you pay Going into a physical bank Discussing why we can’t take a bigger vacation Discussing the cost of college Figuring out how much tip to leave at a restaurant Figuring out how much you get off on sales Back-to-school shopping on a budget Teaching Moments Q52. Which of the following have you used as an opportunity to teach your kids about money? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  104. 104. 104 52% 59% I have a hard time making my kids understand the value of a dollar I’ve tried various ways to get my kids to save their money instead of spending it all right away to no avail Teaching Kids About Money Q56. How much do you agree or disagree with the following statements? (displaying percent who agree) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  105. 105. 105 10% 7% 10% 15% 25% 54% 62% None of the above Credit card Investment account Checking account Online/gaming account Savings account Piggy bank Kids’ Finances Q61. Which of the following do your kids have? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  106. 106. 106 13% 31% 55% Other My kid does I do Paying Kids’ Credit Card Bill Q62. Who pays your kid’s credit card bill? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=67 (kid has credit card)
  107. 107. 107 26% 29% 47% 66% 78% The schools do a good job of teaching kids about money When my kids receive money as a gift, I decide what to do with the money I let my kids make bad financial decisions so they can learn from their mistakes I let my kids manage their own money I keep a pretty close eye on my kids’ money and what they’re doing with it Letting Kids Manage Their Own Money Q63. How much do you agree or disagree with the following statements? (displaying percent who agree) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  108. 108. 108 7% 18% 27% 67% 75% None of the above Manage their own accounts Decide what charities to donate to Decide what to save their money for Decide what they spend their own money on Allowing Kids to Manage Their Own Finances Q64. Which of the following do you allow your kids to do on their own? (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  109. 109. 109 40% 62% 81% 91% I trust teachers to teach my kids about money and finances I would be interested in taking a course that teaches financial basics I would enroll my kids in a course about money and finances for kids Kids should be taught financial literacy in school Parental Attitudes and Behaviors Q65. How much do you agree or disagree with the following statements? (displaying percent who agree) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  110. 110. ALLOWANCE
  111. 111. 111 42% 5% 53% I don’t give allowance I give allowance without any requirements I give allowance, but kids have to earn it Allowance Approach Q75. Which of the following best describes your approach to allowance? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  112. 112. 112 6% 12% 22% 60% $51 or more $21 to $50 $11 to $20 $10 or less Amount of Allowance Q76. Regardless of how often you give allowance, on average, how much do you give per week? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=591 (give an allowance)
  113. 113. 113 8% 13% 9% 17% 16% 20% 17% 11 or older 10 9 8 7 6 5 or younger Age Allowance Begins Q77. How old were your kids when you started giving allowance? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=591 (give an allowance)
  114. 114. 114 47% 64% My kids usually spend most of their allowance money right away I often give my kids additional money outside their allowance Allowance Q78. How much do you agree or disagree with the following statements? (displaying percent who agree) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=591 (Give an allowance)
  115. 115. RESPONDENT PROFILE
  116. 116. 116 49%51% Respondent Profile 38% 26% 19% 18% South Midwest West Northeast Q2. RegionQ1. Age Q3. Gender Men Women Q5. Household Income 74% 12% 11% 2% 1% Married Separated/divorced Single Married (same sex) Widow/widower Q4. Marital Status 21% 35% 28% 16% <35 35–44 45-54 55+ 40% 39% 21% <$50K $50K–$99,999 $100K+ 73% 12% 13% 5% 2% White/Caucasian Hispanic/Latino Black/African American Asian Native American Q6. Race/Ethnicity (check all that apply) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  117. 117. 117 Respondent Profile Q7. Education Level 59% 17% 9% 7% 6% 4% 2% Employed full-time Stay at home parent Employed part-time Self-employed Unemployed Retired Student Q8. Employment Status (check all that apply) 2% 20% 23% 14% 27% 14% < HS graduate HS graduate Some college Assoc. degree Bachelor's degree Graduate degree 31% 41% 20% 8% 1 2 3 4 + Q9. # Kids in Household T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (total respondents)
  118. 118. OBJECTIVE AND METHODOLOGY
  119. 119. 119 Objective and Methodology Objective  To understand the basic financial knowledge, attitudes, and behaviors of parents of children ages 8-14, and young adults between the ages of 18-24 Methodology  T. Rowe Price commissioned two online surveys, one of parents of children ages 8-14, and one of young adults ages 18-24.  The surveys were fielded from January 16, 2018, through January 23, 2018, with quotas of approximately 50% men and 50% women.  A total of 1,014 parents of children ages 8-14 and 1,000 young adults ages 18-24 participated; the sampling error for samples of 1,000 and 1,014 is +/- 3.1% at the 95% confidence interval.  The survey was fielded through ResearchNow. T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey

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