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# T. Rowe Price's 10th Annual Parents, Kids & Money Survey – Holiday Spending

The findings related to holiday saving and spending in T. Rowe Price’s 2018 Parents, Kids, & Money Survey found that parents who try to get everything on their kids’ holiday wish lists are more likely to report that they have gone into debt for their kids, worry that they’re spoiling their kids, and have kids who are less likely to save their own money. Additionally, parents who participate in promotional days, such as Black Friday and Cyber Monday, are more likely to splurge.

### T. Rowe Price's 10th Annual Parents, Kids & Money Survey – Holiday Spending

1. 1. 10TH ANNUAL PARENTS, KIDS & MONEY SURVEY – HOLIDAY SPENDING Detailed Results
2. 2. 2 Contents Parent Survey ……………………………………………………………………………………………………………………………3 Data Cuts………………………………………………………………………………………………………………………………..10 Trending From 2017……………………………………………………………………………………………………………………17 Respondent Profile of Parents………………………………………………………………………………………………………..24 Young Adult Survey…………………………………………………………………………………………………………………….27 Respondent Profile of Young Adults ………………………….…..............................................................................................29 Objective and Methodology……………………………………………………………………………………………………………36
3. 3. 2018 PARENT SURVEY
4. 4. 4 Q66. Do you normally save for holiday spending throughout the year? Q67. When do you normally start saving for holiday spending? Saving for Holiday Spending 45% 55% No Yes 12% 49% 40% Right before the holidays Midyear Right after the holidays T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents) N=555
5. 5. 5 2% 4% 13% 24% 34% 24% \$5,000 or more \$3,000 to \$4,999 \$2,000 to \$2,999 \$1,000 to \$1,999 \$500 to \$999 Less than \$500 Amount Spent on Holiday Spending Q68. How much would you say you normally spend each year on holiday costs? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents)
6. 6. 6 3% 4% 7% 10% 16% 35% 61% 67% Other Retirement Savings Payday Loan Emergency Fund Tax Refund Regular Savings Credit Cards Current Income Q69. Which of the following have you ever used to pay for holiday spending? Q70. How quickly do you pay off what you spent on credit cards from holiday shopping? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents) Paying for Holiday Spending 13% 9% 20% 31% 28% More than 12 months 7-12 months 4-6 months 2-3 months I pay it all in the first month N=600  46% of parents finance holiday spending by taking a payday loan or using credit cards and not paying off the balance right away
7. 7. 7 2% 11% 43% 45% Online exclusively In stores exclusively Mostly online but some in stores Mostly in stores but some online Channels Used for Holiday Spending Q71. How do you usually shop for holiday gifts? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents)
8. 8. 8 15% 45% 48% 49% 59% 61% 65% 80% I spent more on myself around the holidays than I did on my kids I try to get everything on my kids' lists, no matter how much it costs I never stick to my holiday spending budget I shop for items for myself around the holidays I spent more over the holidays than I should have I set a specific amount each year to spend on the holidays I spend the same exact amount for holiday presents on each of my kids* I wait for holiday promotions and deals to make big purchases Attitudes About Holiday Spending Q72. How much do you agree or disagree with each of the following statements? (Displaying percent that agree) T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents) * Question only asked of those with more than one child (N=696)
9. 9. 9 28% 5% 46% 11% 46% 38% I didn't participate in any promotional holidays Giving Tuesday Cyber Monday Small Business Saturday Black Friday shopping online Black Friday shopping in stores Holiday Promotional Days Q73. Last year, did you participate in any of the following shopping/giving promotions? T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents)
10. 10. DATA CUTS
11. 11. 11 Trying to Get Everything on the List 45% of parents try to get everything on their kids’ list, no matter the cost T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents) I try to get everything on the list: No Yes Finance holiday spending 44% 51% Have payday loan debt 4% 10% Have gone into debt to pay for something for their kids 26% 48% Say they’ve tried various ways to get their kids to save their money instead of spending it all right away, to no avail 51% 69% Worry that they are spoiling their kids 51% 69% Have kids that spend their allowance as soon as they get it 38% 56% Have retirement savings 56% 42%
12. 12. 12 Shopping on Promotional Days 72% of parents participate in promotional shopping days T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents) * Question only asked to those with more than one kid (N=696) Participate in promotional days: No Yes Save throughout the year for holiday spending 41% 62% Set a specific budget for holiday spending 54% 64% Use credit cards to pay holiday spending 54% 63% Spent more than \$1,000 on holiday spending 28% 48% Spent more than they should have over the holidays 53% 62% Shop for themselves over the holidays 36% 54% Spend more on themselves than their kids over the holidays 10% 17%
13. 13. 13 Significant Findings by Parent Gender T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents) Men Women Q68. How much spent on holiday costs – Less than \$500 19% 29% Q68. How much spent on holiday costs – Less than \$2K or more 24% 13% Q69. Use credit cards to pay for holiday spending 64% 58% Q72. Try to get everything on kids’ lists, no matter how much it costs 49% 41% Q72. Spent more on themselves than their kids 20% 10%
14. 14. 14 Significant Findings by Parent Age T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents) Millennial Gen X Boomer Q66. Save throughout the year for holiday spending 62% 52% 50% Q67. Start saving for next year right after the holidays 33% 42% 49% Q69. Use credit cards to pay for holiday spending 54% 63% 66% Q69. Use tax refunds to pay for holiday spending 23% 13% 14% Q69. Use payday loans to pay for holiday spending 11% 5% 2% Q70. Pay off credit cards used for holiday spending in the first month 21% 30% 36% Q72. I spent more over the holidays than I should have 65% 58% 53% Q72. I never stick to my holiday spending budget 54% 44% 49% Q72. Try to get everything on kids’ lists, no matter how much it costs 52% 42% 39% Q72. Spent more on themselves than their kids 20% 14% 9% Q73. Participated in any promotional shopping day 76% 72% 64%
15. 15. 15 Significant Findings by Parent Marital Status T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents) Married Not Married Q66. Save throughout the year for holiday spending 57% 49% Q68. How much spent on holiday costs – Less than \$500 20% 38% Q68. How much spent on holiday costs – Less than \$2K or more 20% 10% Q70. Pay off credit cards used for holiday spending in the first month 31% 18% Q72. Try to get everything on kids’ lists, no matter how much it costs 42% 55% Q73. Participated in Black Friday online shopping 48% 40%
16. 16. 16 Significant Findings by Employment Status T. Rowe Price 2018 Parents, Kids & Money Survey – Parent Survey N=1,013 (Total respondents) Employed Full-Time Not Employed Full-Time Q67. Start saving right before the holidays 9% 16% Q69. Use credit cards to pay for holiday spending 63% 54% Q71. Shop exclusively in stores 8% 15% Q72. Shop for themselves during the holidays 52% 44% Q73. Participated in any promotional shopping day 74% 68%
17. 17. TRENDING FROM 2017
18. 18. 18 45% 55% 27% 73% No Yes 2017 2018 12% 49% 40% 9% 43% 48% Right before the holidays Midyear Right after the holidays Q66. Do you normally save for holiday spending throughout the year? Q67. When do you normally start saving for holiday savings? Saving for Holiday Spending T. Rowe Price Parents, Kids & Money Survey – Parent Survey 2017: N=1,014 (Total respondents) 2018: N=1,013 (Total respondents) 2017: N=740 2018: N=555
19. 19. 19 2% 4% 13% 24% 34% 24% 11% 12% 20% 20% 25% 13% \$5,000 or more \$3,000 to \$4,999 \$2,000 to \$2,999 \$1,000 to \$1,999 \$500 to \$999 Less than \$500 2017 2018 Amount Spent on Holiday Spending Q68. How much would you say you normally spend each year on holiday costs? T. Rowe Price Parents, Kids & Money Survey – Parent Survey 2017: N=1,014 (Total respondents) 2018: N=1,013 (Total respondents)
20. 20. 20 3% 4% 7% 10% 16% 35% 61% 67% 2% 9% 12% 16% 18% 40% 50% 59% Other Retirement Savings Payday Loan Emergency Fund Tax Refund Regular Savings Credit Cards Current Income 2017 2018 13% 9% 20% 31% 28% 4% 6% 22% 39% 29% More than 12 months 7-12 months 4-6 months 2-3 months I pay it all in the first month Q69. Which of the following have you ever used to pay for holiday spending? Q70. How quickly do you pay off what you spent on credit cards from holiday shopping? Paying for Holiday Spending T. Rowe Price Parents, Kids & Money Survey – Parent Survey 2017: N=1,014 (Total respondents) 2018: N=1,013 (Total respondents)
21. 21. 21 2% 11% 43% 45% 2% 28% 29% 42% Online exclusively In stores exclusively Mostly online but some in stores Mostly in stores but some online 2017 2018 T. Rowe Price Parents, Kids & Money Survey – Parent Survey 2017: N=1,014 (Total respondents) 2018: N=1,013 (Total respondents) Channels Used for Holiday Spending Q71. How do you usually shop for holiday gifts?
22. 22. 22 45% 48% 49% 59% 61% 65% 80% 58% 53% 60% 58% 72% 73% 82% I try to get everything on my kids' lists, no matter how much it costs I never stick to my holiday spending budget I shop for items for myself around the holidays I spent more over the holidays than I should have I set a specific amount each year to spend on the holidays I spend the same exact amount for holiday presents on each of my kids I wait for holiday promotions and deals to make big purchases 2017 2018 Attitudes About Holiday Spending T. Rowe Price Parents, Kids & Money Survey – Parent Survey 2017: N=1,014 (Total respondents) 2018: N=1,013 (Total respondents) Q72. How much do you agree or disagree with each of the following statements? (Displaying percent that agree)
23. 23. 23 28% 5% 46% 11% 46% 38% 16% 14% 44% 21% 52% 46% I didn't participate in any promotional holidays Giving Tuesday Cyber Monday Small Business Saturday Black Friday shopping online Black Friday shopping in stores 2017 2018 T. Rowe Price Parents, Kids & Money Survey – Parent Survey 2017: N=1,014 (Total respondents) 2018: N=1,013 (Total respondents) Holiday Promotional Days Q73. Last year, did you participate in any of the following shopping/giving promotions?
24. 24. RESPONDENT PROFILE OF PARENTS
25. 25. 25 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)
26. 26. 26 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)
27. 27. YOUNG ADULT SURVEY (18 – 24 YEARS OLD)
28. 28. 28 51% 63% 74% 76% I never stick to my holiday spending budget I usually spend more over the holidays than I should I shop for items for myself around the holidays I wait for holiday promotions and deals to make big purchases Attitudes About Holiday Spending Q53. How much do you agree or disagree with each of the following statements? (Displaying percent that agree) T. Rowe Price 2018 Parents, Kids & Money Survey – 18-24 Year Old Survey N=1,000 (Total respondents)
29. 29. RESPONDENT PROFILE OF YOUNG ADULTS
30. 30. 30 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)
31. 31. 31 5% 8% 14% 7% 6% 8% 14% 11% 10% 9% 9% \$100,000 or more \$75,000 to less than… \$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
32. 32. 32 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)
33. 33. 33 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)
34. 34. 34 4% 4% 21% 34% 33% 4% Graduate degree Currently in graduate school College degree Currently in college High school degree 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)
35. 35. 35 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)
36. 36. OBJECTIVE AND METHODOLOGY
37. 37. 37 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 1,013 parents of children aged 8-14 and 1,000 young adults aged 18-24 participated; the sampling error for samples of 1,000 and 1,013 is +/- 3.1% at the 95% confidence interval.  The survey was fielded through ResearchNow. T. Rowe Price 2018 Parents, Kids & Money Survey T. Rowe Price Investment Services, Inc. © 2018 T. Rowe Price. All rights reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, and the Bighorn Sheep design are, collectively and/or apart, trademarks of T. Rowe Price Group, Inc. 201810-631358