2016 Parents, Kids and Money Survey Results

8TH ANNUAL PARENTS, KIDS &
MONEY SURVEY
March 2016
Detailed Results

2
Contents
Saving for
kids’
education
Household Finances…………………………………………………………………..3
Household Debt………………………………………………………………………13
Savings………………………………………………………………………………..24
Emergency Fund……………………………………………………………………..27
Retirement Savings…………………………………………………………………..34
Parental Knowledge, Attitudes, and Behaviors……………………………………39
Financial Discussions………………………………………………………………..47
Teaching Kids About Finances……………………………………………………...59
Allowance……………………………………………………………………………..67
Kids’ Responses……………………………………………………………………...72
Respondent Profile…………………………………………………………………..89
Objective and Methodology ………………………………………………………...94

4
38%
26%
22%
8%
7%
54%
23%
11%
5%
7%
0% 10% 20% 30% 40% 50% 60%
I have sole responsibility
I’m primarily responsible, although others are involved
I share equally in managing the finances
I’m involved, but someone else is primarily responsible
I’m not involved at all
Men
Women
Managing Household Finances
T. Rowe Price 2016 Parents, Kids & Money Survey
N=865 (Married)
Q13. HOW INVOLVED ARE YOU IN MANAGING THE HOUSEHOLD FINANCES?
 Men are more likely to have sole responsibility, while women are more likely to share equally in
managing the household finances
= Statistically significant --.05 level

5
17%
83%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
No
Yes
Household Budget
N=1,086 (Total Respondents)
Q17. DO YOU HAVE A HOUSEHOLD BUDGET?

6
3%
18%
79%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Not sure
No
Yes
Budget Surplus
N=905 (Have Household Budget)
Q18. IS THERE TYPICALLY MONEY LEFT OVER AFTER PAYING ALL THE
MONTHLY EXPENSES?

7
33%
67%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Pull money from a retirement account
Go into debt
Facing Financial Hardship
Q19. IF FACED WITH FINANCIAL HARDSHIP THAT YOU COULDN’T OTHERWISE
COVER, WHICH OF THE FOLLOWING TWO OPTIONS WOULD YOU CHOOSE FIRST?
 32% of those who say they would choose to pull money from a retirement account do not
currently have any retirement savings
 Of the 589 parents who do currently have retirement savings, 42% would opt to pull money from
retirement as opposed to going into debt

8
17%
24%
16%
43%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Strongly agree
Somewhat agree
Somewhat disagree
Strongly disagree
Financial Keeping Financial Secrets
Q59. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING
STATEMENTS: I KEEP FINANCIAL SECRETS FROM MY SPOUSE/PARTNER?
41% Agree
 Men are more likely than women to say they keep financial secrets from their spouse/partner
(50% vs. 31%)
 Keeping financial secrets decreases by generation (60% for millennials, 39% for Gen Xers, and
16% for baby boomers)

9
8%
14%
18%
24%
31%
50%
57%
0% 10% 20% 30% 40% 50% 60%
None of the above
Investment account
Credit card
Checking account
Online/gaming account
Piggy bank
Savings account
Kids’ Finances
Q55. WHICH OF THE FOLLOWING DO YOUR KIDS HAVE?
(CHECK ALL THAT APPLY)
 A total of 79% of kids have either a savings account or a piggy bank

10
24%
17%
28%
31%
0% 5% 10% 15% 20% 25% 30% 35%
$300 or more
$200 to $299
$100 to $199
Less than $100
Amount Spent on Kid – Birthday Presents
Q68. THINKING ONLY ABOUT YOUR KID WHO WILL BE TAKING THE SURVEY, APPROXIMATELY
HOW MUCH DID YOU SPEND IN THE PAST 12 MONTHS ON BIRTHDAY PRESENTS?

11
23%
18%
26%
33%
0% 5% 10% 15% 20% 25% 30% 35%
$300 or more
$200 to $299
$100 to $199
Less than $100
Amount Spent on Kid – Birthday Party
HOW MUCH DID YOU SPEND IN THE PAST 12 MONTHS ON A BIRTHDAY PARTY?

12
35%
29%
36%
0% 5% 10% 15% 20% 25% 30% 35% 40%
$500 or more
$200 to $499
Less than $200
Amount Spent on Kid – Extracurricular
Activities
HOW MUCH DID YOU SPEND IN THE PAST 12 MONTHS ON EXTRACURRICULAR ACTIVITIES?

14
16%
2%
9%
12%
14%
20%
23%
40%
48%
56%
0% 10% 20% 30% 40% 50% 60%
I don't have any debt
Other
Payday loan
Student loan (from kid's education)
Friend/relative debt
Student loan (from parent's education)
Medical debt
Car loan
Mortgage
Credit card debt
Types of Debt
Q14. WHICH OF THE FOLLOWING TYPES OF DEBT DO YOU HAVE?
 61% of parents have more than one type of debt, with a mean number of debt types at 2.25
 5% of parents have student loan debt for both parents’ and kids’ education
 Married parents are more likely than single parents to have debt (86% vs. 76%)
Mean Types of Debt: 2.25

15
18%
34%
22%
26%
0% 10% 20% 30% 40%
Strongly agree
Somewhat agree
Somewhat disagree
Strongly disagree
Perception of Credit Card Debt
STATEMENT: EVERYBODY HAS CREDIT CARD DEBT?
52% Agree
 Men are more likely than women to say that everybody has credit card debt (57% vs. 46%)

16
25%
24%
24%
27%
0% 5% 10% 15% 20% 25% 30% 35% 40%
$175,000 or more
$100,000 to $174,999
$50,000 to $99,999
Less than $50,000
Amount of Debt – Mortgage
N=526 (Have a Mortgage)
Q15. WHAT IS THE APPROXIMATE BALANCE (I.E., THE AMOUNT YOU STILL
OWE) FOR YOUR MORTGAGE?
Mean: $119,222
Median: $92,250

17
21%
36%
20%
23%
0% 5% 10% 15% 20% 25% 30% 35% 40%
$20,000 or more
$10,000 to $19,999
$5,000 to $9,999
Less than $5,000
Amount of Debt – Car Loan
N=436 (Have a Car Loan)
OWE) FOR YOUR CAR LOAN?
Mean: $12,254
Median: $10,000

18
29%
22%
26%
23%
0% 5% 10% 15% 20% 25% 30% 35% 40%
$6,000 or more
$3,000 to $5,999
$1,000 to $2,999
Less than $1,000
Amount of Debt – Credit Cards
N=611 (Have a Credit Card Debt)
OWE) FOR YOUR CREDIT CARDS?
Mean: $6,105
Median: $3,000

19
27%
21%
29%
23%
0% 5% 10% 15% 20% 25% 30% 35% 40%
$30,000 or more
$15,000 to $29,999
$5,000 to $14,999
Less than $5,000
Amount of Debt – Student Loans (Parents)
N=611 (Have Student Loans for Parents’ Education)
OWE) FOR YOUR STUDENT LOANS (FOR YOU OR SPOUSE’S EDUCATION)?
Mean: $27,078
Median: $12,500

20
32%
22%
18%
27%
0% 5% 10% 15% 20% 25% 30% 35% 40%
$10,000 or more
$5,000 to $9,999
$1,000 to $4,999
Less than $1,000
Amount of Debt – Student Loans (Kids)
N=134 (Have Student Loans for Kids’ Education)
OWE) FOR YOUR STUDENT LOANS (FOR YOUR KIDS)?
Mean: $10,768
Median: $5,000

21
40%
29%
31%
0% 10% 20% 30% 40% 50% 60%
$2,000 or more
$500 to $1,999
Less than $500
Amount of Debt – Friend/Family Loans
N=150 (Have Friend/Family Loans)
Q15. WHAT IS THE APPROXIMATE BALANCE (I.E., THE AMOUNT YOU STILL OWE)
FOR YOUR FRIEND/FAMILY LOANS?
Mean: $3,855
Median: $1,000

22
33%
39%
28%
0% 10% 20% 30% 40% 50% 60%
$5,000 or more
$1,000 to $4,999
Less than $1,000
Amount of Debt – Medical Debt
N=254 (Have Medical Debt)
FOR YOUR MEDICAL DEBT?
Mean: $7,517
Median: $2,000

23
37%
42%
20%
0% 10% 20% 30% 40% 50% 60%
$2,000 or more
$500 to $1,999
Less than $500
Amount of Debt – Payday Loan
N=100 (Have Payday Loan)
FOR YOUR PAYDAY LOAN?
Mean: $2,291
Median: $1,000

25
17%
40%
51%
54%
58%
0% 10% 20% 30% 40% 50% 60% 70%
None of the above
Money saved for other goals
An emergency fund to cover unexpected expenses
Money saved for retirement
Money saved for kids’ college education
Savings Accounts
Q20. WHICH OF FOLLOWING DO YOU HAVE?
Total Types of Savings
None: 17%
One: 20%
Two: 25%
Three: 19%
Four: 19%
 Married parents are more likely than single parents to have retirement savings (56% vs. 46%)
and college savings (60% vs. 50%)

26
Savings Accounts – By Parent Gender and
Age
Q20. WHICH OF THE FOLLOWING DO YOU HAVE?
Gender Age
Men Women
Millennial
(A)
Gen X
(B)
Baby
Boomer
(C)
Money saved for kids’ college education 69% 48% 70% (B,C) 56% 55%
Money saved for retirement 60% 49% 47% 56% (A) 56%
Emergency fund 56% 47% 52% 51% 53%
Money saved for other goals 50% 32% 48% 39% 35%
None of the above 9% 25% 9% 19% (A) 22% (A)

28
15%
8%
19%
6%
9%
20%
13%
10%
0% 5% 10% 15% 20% 25%
More than twelve months
Seven to twelve months
Six months
Five months
Four months
Three months
Two months
One month or less
Size of Emergency Fund
N=558 (Have Emergency Fund)
Q23. FOR HOW MANY MONTHS WOULD YOUR EMERGENCY FUND COVER
YOUR FAMILY’S EXPENSES?

29
20%
80%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
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
Q24. DO YOU MAINTAIN A SEPARATE ACCOUNT FOR YOUR EMERGENCY
FUND, OR IS IT KEPT IN AN ACCOUNT WITH OTHER FUNDS?

30
2%
9%
5%
5%
34%
67%
1%
11%
20%
23%
38%
81%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Not sure
Other investment account
College saving account
Retirement account
Checking account
Savings account
Yes No
Emergency Fund Account Types
Q25. IN WHAT TYPE OF ACCOUNT DO YOU KEEP YOUR EMERGENCY FUND?
Maintain a separate account
for emergency fund

31
25%
3%
16%
17%
23%
24%
28%
7%
12%
13%
20%
20%
22%
24%
24%
0% 5% 10% 15% 20% 25% 30%
Nothing
Other
Cover expen. while unemployed
To pay taxes
Car purchase or repair
Health care costs
Home repair/renovation
Wedding
Down payment on a home
Childcare/day care
Kids' education
Vacation
Pay off debt
Day-to-day expenses
Holiday spending
Using the Emergency Fund
Q26. WHAT TYPES OF THINGS HAVE YOU USED EMERGENCY FUND MONEY
FOR IN THE PAST TWO YEARS?
55% have used emergency
funds for non-emergencies,
and 37% have used
emergency funds for more
than one non-emergency
Across categories, millennials
are more likely than older
generations to tap into their
emergency fund
Emergencies
Non-Emergencies

32
5%
8%
32%
60%
0% 10% 20% 30% 40% 50% 60% 70%
Other
I don't think it's necessary
I have enough in other accounts to cover emergencies
I can't afford to
Why No Emergency Fund
N=528 (Don’t Have Emergency Fund)
Q27. WHY DON’T YOU HAVE AN EMERGENCY FUND?
 48% of those who say they can’t afford to have an emergency fund have a household budget,
and money left over each month after paying expenses

33
8%
3%
8%
12%
14%
22%
24%
32%
32%
38%
42%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Other
Other investment account
College saving account
Payday loan
Home equity loan or line of credit
Retirement savings
Personal loan
Checking account
Savings account
Family/friends
Credit cards
Resources Used for Emergencies
N=528 (Don’t Have Emergency Fund)
Q28. IN CASE OF EMERGENCY OR HARDSHIP, WHICH OF THE FOLLOWING
WOULD YOU RELY ON FOR FUNDS?
 Women are more likely than men to say family/friends (42% vs. 34%), and less likely to say
checking account (28% vs. 38%), savings account (24% vs. 41%) and college savings account
(5% vs. 12%)

35
1%
22%
25%
26%
26%
29%
32%
41%
64%
0% 10% 20% 30% 40% 50% 60% 70%
Other
Annuity or life insurance policy
Certificate of deposit (CD)
Roth IRA
Roth 401(k) plan
Regular investment account
Traditional IRA
Regular savings account
401(k) plan
Retirement Accounts
N=589 (Have Retirement Savings)
Q29. WHAT TYPES OF ACCOUNTS DO YOU HAVE FOR YOUR RETIREMENT
SAVINGS?
Total # of Accounts
One: 32%
Two: 23%
Three: 20%
Four +: 25%
Mean: 2.67
 Of those parents who have retirement savings, 88% use an IRA or 401(k) (traditional or Roth),
but 33% use only those types of accounts for retirement savings

36
30%
70%
0% 10% 20% 30% 40% 50% 60% 70% 80%
No
Yes
Mixed Retirement Accounts
N=320 (Have Regular Savings or Investment Accounts for Retirement Savings)
Q30. DO THE REGULAR SAVINGS OR INVESTMENT ACCOUNTS YOU USE
FOR RETIREMENT SAVINGS ALSO HAVE MONEY THAT IS NOT GOING TO BE
USED FOR RETIREMENT?

37
Using Money From Retirement Accounts
N=575 (Have Retirement Savings and Not Retired)
48%
1%
10%
12%
13%
15%
16%
8%
8%
9%
9%
13%
15%
16%
17%
17%
0% 10% 20% 30% 40% 50% 60%
Nothing
Other
Cover expen. while unemployed
To pay taxes
Car purchase or repair
Home repair/renovation
Health care costs
Wedding
Childcare/day care
Down payment on a home
Replenish emergency fund
Day-to-day expenses
Holiday spending
Kids' education
Vacation
Pay off debt
Q31. WHAT TYPES OF THINGS HAVE YOU PAID FOR WITH MONEY TAKEN
FROM RETIREMENT SAVINGS IN THE PAST TWO YEARS?
44% have used retirement
funds for non-emergencies,
and 28% for more than one
non-emergency
Across categories,
millennials are more likely
than older generations to tap
into their emergency fund
Emergencies
Non-Emergencies

38
22%
38%
24%
17%
0% 10% 20% 30% 40%
Strongly agree
Somewhat agree
Somewhat disagree
Strongly disagree
Anxiety About Saving for Retirement
STATEMENT: CONVERSATIONS ABOUT SAVING FOR RETIREMENT USUALLY
FILL ME WITH A LOT OF ANXIETY?
60% Agree

PARENTAL KNOWLEDGE,
ATTITUDES, AND BEHAVIORS

40
48%
72%
72%
73%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Investing
Managing expenses
Budgeting
Money
Parents’ Financial Knowledge
Q53. OVERALL, HOW KNOWLEDGEABLE ARE YOU ABOUT EACH OF THE
FOLLOWING?
(FIVE-POINT SCALE – DISPLAYING TOP 2 BOX)
 For each topic, men are more likely than women to say they are knowledgeable

41
33%
46%
52%
57%
58%
0% 20% 40% 60% 80%
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
Q56 & Q59. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE
FOLLOWING STATEMENTS?
(DISPLAYING PERCENT THAT AGREE)
 75% of parents who worry that they spoil their kids also say they spend too much on things their
kids don’t really need, compared with 32% of parents who don’t worry about spoiling
 Men are more likely than women to worry about spoiling their kids (61% vs. 55%), go into debt to
pay for something their kids want (53% vs. 40%), and borrow from their kids’ piggy banks (38% vs.
29%)

42
28%
15%
15%
22%
24%
48%
0% 10% 20% 30% 40% 50% 60%
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
Told my kids we have less money than we really do
Told my kids we can’t afford things when we really can
Used money as incentive for good grades or good behavior
Parental Behaviors
Q49. WHICH OF THE FOLLOWING THINGS HAVE YOU DONE?
 72% of parents have done at least one of the listed behaviors
 Millennials are more likely than older generations to misrepresent the household financial status

43
15%
10%
15%
19%
24%
28%
30%
32%
34%
42%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
None of the above
Robo-advisor
Books or other materials by celebrity spokespeople
Social media
Financial news channels
Parents
Friends
Traditional finacial advisor
Financial websites or apps
Google/my own research
Financial Resources
Q54. WHEN IT COMES TO FINANCIAL MATTERS, WHICH OF THE FOLLOWING
DO YOU CONSULT?

44
2%
4%
19%
75%
0% 20% 40% 60% 80%
The cost of bonds becoming more expensive and stocks becoming less expensive
The cost of stock becoming more expensive and bonds becoming less expensive
The value of currency rising, and the cost of goods and services falling
A general increase in the price of goods and services over time
Financial Awareness: Inflation
Q60. WHAT IS INFLATION?

45
6%
8%
35%
51%
0% 10% 20% 30% 40% 50% 60%
A way to save for college
A way to save for retirement that your employer fully funds
A way to save for retirement where you contribute after-tax money
A way to save for retirement where you contribute pre-tax money
Financial Awareness: Roth IRA
Q60. WHAT IS A ROTH IRA?

46
Parents’ Knowledge of Saving and
Investing
38%
45%
48%
53%
70%
0% 20% 40% 60% 80%
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
Q62. PLEASE INDICATE WHETHER EACH OF THE FOLLOWING STATEMENTS
IS TRUE OR FALSE
(DISPLAYING PERCENT SAYING TRUE)
 Men are more likely than women to say saving 6% a year is enough for retirement (58% vs.
47%), an emergency fund lasting one to two months is sufficient (51% vs. 44%), and stocks are
less risky than bonds (44% vs. 33%)

48
8%
13%
12%
25%
30%
13%
0% 5% 10% 15% 20% 25% 30% 35%
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
Q42. 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?
 Parents who discuss financial topics with their kids at least once a week are more likely than
those that do not to have kids who say they are smart about money (68% vs. 36%)
 Men are more likely than women to say more than once a week (36% vs. 29%)
 Millennials are more likely than Gen Xers and baby boomers to say more than once a week
(43% vs. 32% vs. 21%)

49
15%
85%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
I set aside specific time to discuss financial topics with my kids
We generally just talk for a few minutes as things come up
Types of Financial Discussions
N=949 (Have Financial Discussions With Kids)
Q43. WHICH OF THE FOLLOWING BEST DESCRIBES HOW YOU DISCUSS
FINANCIAL TOPICS WITH YOUR KIDS?

50
40%
59%
0% 20% 40% 60% 80%
My kids are too young to talk to about money and finances
I generally only talk to my kids about money when they ask about it
Financial Conversations
STATEMENTS?

51
15%
14%
23%
20%
29%
0% 5% 10% 15% 20% 25% 30% 35%
Extremely reluctant
Very reluctant
Somewhat reluctant
Not very reluctant
Not at all reluctant
Reluctance to Discuss Financial Matters
Q44. HOW RELUCTANT ARE YOU TO DISCUSS FINANCIAL MATTERS WITH
YOUR KIDS?
 71% of parents have reluctance to discussing financial matters with their kids

52
54%
55%
80%
80%
83%
86%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Not talking about money in public
Giving to charity
Setting financial goals
Maintaining a budget
How to earn money
The importance of saving
Importance of Financial Discussions
Q45. HOW IMPORTANT IS IT TO DISCUSS EACH OF THE FOLLOWING WITH
YOUR KIDS?
(FIVE-POINT SCALE – DISPLAYING TOP 2 BOX)
 For each topic, parents who say it’s important to discuss the topic with kids are more likely to
have frequent financial discussions in general

53
18%
16%
16%
20%
21%
19%
17%
20%
20%
18%
17%
22%
18%
22%
23%
10%
13%
25%
18%
19%
17%
13%
15%
14%
29%
23%
24%
39%
35%
20%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Terrorism
Family Finances
Death
Bullying
Drugs
Sex
Extremely Very Somewhat Not Very Not at All
Uncomfortable Discussions
Q46. HOW UNCOMFORTABLE ARE YOU DISCUSSING EACH OF THE
FOLLOWING WITH YOUR KIDS?

54
5%
3%
8%
15%
23%
40%
7%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
More than five times
Five times
Four times
Three times
Twice
Once
Never
Teachable Moments
Q47. ABOUT HOW MANY TIMES DURING THE COURSE OF A NORMAL DAY
DO YOU HAVE THE OPPORTUNITY TO TALK TO YOUR KIDS ABOUT
FINANCIAL TOPICS?

55
16%
28%
53%
3%
0% 10% 20% 30% 40% 50% 60%
Always
Most of the time
Some of the time
Never
Taking Advantage of Teachable Moments
N=1,010 (Have Teachable Moments)
Q48. HOW OFTEN DO YOU TAKE ADVANTAGE OF THE OPPORTUNITIES THAT
OCCUR THROUGHOUT THE DAY TO TALK TO YOUR KIDS ABOUT FINANCIAL
TOPICS?

56
40%
26%
34%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
No difference
Girls
Boys
Kids Asking Questions
N=561 (Have Boys and Girls)
Q50. BASED ON YOUR EXPERIENCE, WHO ASKS ABOUT MONEY MORE?

57
46%
24%
30%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
No difference
Girls
Boys
Talking to Boys and Girls
N=561 (Have Boys and Girls)
Q51. DO YOU FIND THAT YOU SPEND MORE TIME TALKING ABOUT MONEY
WITH YOUR BOY(S) OR GIRL(S)?

58
Talking to Boys and Girls
N=300 (Talk More to Boys or Girls)
Q52. WHY DO YOU TALK MORE WITH YOUR [BOY(S) OR GIRL(S)]?
26%
32%
39%
43%
51%
54%
24%
33%
41%
30%
45%
52%
0% 10% 20% 30% 40% 50% 60%
They play on financial games or apps more
They are more likely to have more money to manage
They are older
They need more help with money
They seem more interested
They ask more questions
Girls Boys
Talk More to:
= Statistically significant - .05 level
 Parents who talk with boys about finances more than girls are more likely to say boys need help
with money

60
7%
30%
42%
67%
68%
0% 10% 20% 30% 40% 50% 60% 70% 80%
None of the above
Manage their own accounts
Decide what charities to donate to
Decide what they spend their own money on
Decide what to save their money for
Allowing Kids to Manage Their Finances
Q58. WHICH OF THE FOLLOWING DO YOU ALLOW YOUR KIDS TO DO ON
THEIR OWN?

61
44%
19%
20%
41%
0% 10% 20% 30% 40% 50%
None of the above
Showed financial statements to my kids
Talked with my kid(s) about market volatility
Talked with my kid(s) about the value of long-term investing
Financial Conversations
Q49. WHICH OF THE FOLLOWING THINGS HAVE YOU DONE?
 56% of parents have done at least one of the behaviors listed
 For all options, men are more likely than women to respond positively

62
46%
58%
67%
74%
80%
83%
0% 20% 40% 60% 80% 100%
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 would be interested in taking a course that teaches financial basics
I let my kids manage their own money
I would enroll my kids in a course about money and finances for kids
I keep a pretty close eye on my kids’ money and what they’re doing with it
Letting Kids Manage Their Money
Q56 AND Q59. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE
FOLLOWING STATEMENTS?
 Men are more likely than women to say they’d be interested in a course about financial basics
(74% vs. 60%)

63
4%
29%
32%
19%
16%
0% 5% 10% 15% 20% 25% 30% 35%
Never
15 or older
10 to 14
5 to 9
1 to 4
Age to Start – Bank Account
Q57. HOW OLD DO YOU THINK KIDS SHOULD BE WHEN YOU OPEN A BANK
ACCOUNT IN THEIR NAME?
Mean: 9.90
Median: 10

64
22%
33%
30%
8%
6%
0% 5% 10% 15% 20% 25% 30% 35%
Never
15 or older
10 to 14
5 to 9
1 to 4
Age to Start – Online Account
Q57. HOW OLD DO YOU THINK KIDS SHOULD BE WHEN YOU OPEN AN
ACCOUNT FOR THEM TO MAKE IN-APP PURCHASES?
Mean: 9.74
Median: 12

65
19%
68%
5%
3%
4%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Never
15 or older
10 to 14
5 to 9
1 to 4
Age to Start – Credit Card
Q57. HOW OLD DO YOU THINK KIDS SHOULD BE WHEN YOU GIVE THEM A
CREDIT CARD?
Mean: 13.39
Median: 17

66
14%
19%
6%
36%
8%
3%
15%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Older than 18
18
17
16
15
14
Younger than 14
Age to Start – Employment
Q57. HOW OLD DO YOU THINK KIDS SHOULD BE WHEN YOU MAKE THEM
GET A JOB?
Mean: 17.28
Median: 16

68
7%
9%
30%
46%
8%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Never
15 or older
10 to 14
5 to 9
1 to 4
Age to Start – Giving Allowance
Q57. HOW OLD DO YOU THINK KIDS SHOULD BE WHEN YOU: START GIVING
THEM AN ALLOWANCE?
Mean: 8.01
Median: 8

69
21%
19%
60%
0% 10% 20% 30% 40% 50% 60% 70%
I don’t give allowance
I give allowance without any requirements
I give allowance, but kids have to earn it
Allowance Approach
Q69. WHICH OF THE FOLLOWING BEST DESCRIBES YOUR APPROACH TO
ALLOWANCE?
 Men are more likely than women to give allowance (84% vs. 74%)
 Millennials and baby boomers are more likely than Gen Xers to give allowance (84% vs. 76%
vs. 86%)

70
4%
16%
18%
61%
0% 10% 20% 30% 40% 50% 60% 70%
$51 or more
$21 to $50
$11 to $20
$10 or less
Amount of Allowance
N=855 (Give an Allowance)
Q70. REGARDLESS OF HOW OFTEN YOU GIVE ALLOWANCE, ON AVERAGE,
HOW MUCH DO YOU GIVE PER WEEK?

71
8%
16%
8%
21%
18%
14%
15%
0% 5% 10% 15% 20% 25%
11 or older
10
9
8
7
6
5 or younger
Age Allowance Begins
N=855 (Give an Allowance)
Q72. HOW OLD WERE YOUR KIDS WHEN YOU STARTED GIVING
ALLOWANCE?

73
18%
29%
43%
9%
2%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Extremely
Very
Somewhat
Not very
Not at all
Kids’ Knowledge of Money
Q73. OVERALL, HOW SMART ARE YOU ABOUT MONEY?
 Eight to nine year olds are more likely than 10 to 12 year olds and 13 to14 year olds to say they
are smart about money (54% vs. 44% vs. 44%)

74
22%
55%
18%
6%
0% 10% 20% 30% 40% 50% 60%
Frequently
Occasionally
Rarely
Never
Frequency of Financial Conversations
Q74. HOW OFTEN DO YOU TALK WITH YOUR PARENTS ABOUT MONEY AND
FINANCES?

75
18%
21%
22%
26%
40%
44%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
None of the above
Friends/other kids
Aunts/ uncles/ cousins
Brothers and sisters
Teachers
Grandparents
Learning About Money From Others
Q75. WHO ELSE BESIDES YOUR PARENTS TALKS TO YOU OR TEACHES YOU
ABOUT MONEY AND FINANCES?

76
16%
84%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
My parents set aside specific time to discuss financial topics with me
We generally just talk for a few minutes as things come up
Discussing Financial Topics
Q76. WHICH OF THE FOLLOWING BEST DESCRIBES HOW YOU DISCUSS
FINANCIAL TOPICS WITH YOUR PARENTS?

77
Kid Agree Statements
35%
38%
44%
51%
89%
0% 20% 40% 60% 80% 100%
My parents are uncomfortable talking to me about money
My parents fight about money
My friends and I talk about money a lot
I play a lot of games that have money involved
My parents set a good example when it comes to how to save and spend money
STATEMENTS?
 Eight to nine year olds are more likely than 10 to12 year olds and 13 to 14 year olds to say they
talk to friends about money (52% vs. 39% vs. 45%), their parents fight about money (47% vs. 34%
vs. 35%), and their parents are uncomfortable talking with them about money (45% vs. 29% vs.
34%)

78
1%
19%
11%
69%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Not sure
No
Yes, and I don't have to earn it
Yes, but I have to earn it
Allowance
Q78. DO YOU GET AN ALLOWANCE?

79
4%
19%
62%
16%
0% 10% 20% 30% 40% 50% 60% 70%
Other
Monthly
Weekly
Daily
Frequency of Allowance
N=871 (Receive an Allowance)
Q79. HOW OFTEN DO YOU GET AN ALLOWANCE?

80
7%
17%
17%
60%
0% 10% 20% 30% 40% 50% 60% 70%
$51 or more
$21 to $50
$11 to $20
$10 or less
Amount of Allowance
N=871 (Receive an Allowance)
Q80. ON AVERAGE, HOW MUCH ALLOWANCE DO YOU GET PER WEEK?

81
Money Management
33%
51%
69%
86%
87%
91%
0% 20% 40% 60% 80% 100%
My parents have borrowed from my “piggy bank” without paying me back
I spend my allowance as soon as I get it
My parents encourage me to give money to charity
My parents let me manage my own money
My parents encourage me to donate clothes or toys to charitable causes (e.g.,
Goodwill, Salvation Army, Toys for Tots, etc.)
It’s important to save money for emergencies
STATEMENTS?

82
33%
8%
59%
0% 10% 20% 30% 40% 50% 60% 70%
I don't know
No
Yes
Knowledge of Parental Saving
Q82. DO YOUR PARENTS PUT MONEY ASIDE FOR SAVINGS EACH MONTH?

83
53%
47%
0% 10% 20% 30% 40% 50% 60%
No
Yes
Lending Money to Friends
Q85. HAVE YOU EVER LENT MONEY TO YOUR FRIENDS?

84
15%
85%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
No
Yes
Getting Paid Back
N=515 (Lent Money to a Friend)
Q86. DO THEY USUALLY PAY YOU BACK?

85
15%
22%
29%
25%
9%
0% 5% 10% 15% 20% 25% 30% 35%
All of it
More than half of it
Half of it
Less than half of it
None of it
Kids’ Savings Habits
Q87. IN GENERAL, HOW MUCH OF THE MONEY YOU GET DO YOU SAVE?

86
23%
23%
27%
19%
8%
0% 5% 10% 15% 20% 25% 30%
Six months or more
Three to five months
One to two months
Two to three weeks
One week or less
Saving for a Goal
Q88. WHAT IS THE LONGEST YOU’VE EVER SAVED FOR SOMETHING YOU
WANTED TO BUY?

87
Kid Agree Statements
41%
43%
57%
62%
78%
0% 20% 40% 60% 80% 100%
I’ve lied to my parents about what I’ve spent money on
I sometimes feel ashamed that I have less than most of the other kids
I expect my parents to buy me what I want
I expect my parents to cover the cost for whatever college I want to go to
I would consider going to a less expensive college to avoid taking on student
loans
STATEMENTS?
 Eight to nine year olds are more likely than 10 to 12 year olds and 13 to14 year olds to say they
expect parents to buy them what they want (70% vs. 53% vs. 51%) and pay for whatever college
they want (74% vs. 60% vs. 56%)

88
Knowledge based Kids Questions
29%
50%
68%
78%
80%
85%
0% 20% 40% 60% 80% 100%
It costs the same amount of money for my parents to buy me holiday presents as it does
for them to buy a car
A savings account is the only type of account in which your money can grow
What investments you choose (e.g., what stock, bond, or mutual fund) matters more than
how much money you invest
When parents talk about ‘investing’ their money it includes things like buying stocks and
bonds
My parents should save for college in a savings account
It costs more to go to college than it does to buy a car
Q95. PLEASE INDICATE WHETHER EACH OF THE FOLLOWING STATEMENTS
IS TRUE OR FALSE.
(DISPLAYING PERCENT SAYING TRUE)

90
49%51%
Respondent Profile
26%
25%
25%
24%
South
Northeast
West
Midwest
Q2. REGIONQ1. AGE Q3. GENDER
Men
Women
Q5. HOUSEHOLD
INCOME
76%
11%
9%
4%
1%
Married
Separated/divorced
Single
Married (same sex)
Widow/widower
Q4. MARITAL STATUS
29%
58%
13%
< 35
35–50
51 +
30%
38%
32%
< $50K
$50K–$99,999
$100K +
74%
16%
9%
5%
2%
White/Caucasian
Hispanic/Latino
Black/African
American
Asian
Native American
Q6. RACE/ETHNICITY
T. Rowe Price Parents, Kids & Money Survey
N=1,086 (Parents: Total respondents)

91
Respondent Profile
Q7. EDUCATION LEVEL
64%
14%
9%
4%
4%
3%
2%
Employed full time
Stay-at-home parent
Employed part time
Self-employed
Unemployed
Retired
Student
Q8. EMPLOYMENT STATUS
2%
11%
21%
12%
33%
21%
< HS graduate
HS graduate
Some college
Associate's degree
Bachelor's degree
Graduate degree
28%
42%
19%
11%
1
2
3
4 +
Q9. # KIDS IN
HOUSEHOLD
51%49%
Q11. KID GENDER
BoysGirls
Q12. KID AGE
10%
14%
16%
13%
14%
19%
14%
8
9
10
11
12
13
14
80%
15%
5%
Biological
only
Non-
biolgical
only
Mix
TYPE OF KIDS

92
Respondent Profile
25%
53%
17%
4%
1%
None
One
Two
Three
Four +
# BOYS IN HOUSEHOLD# KIDS IN HOUSEHOLD
KID GENDER MIX
28%
42%
19%
11%
One
Two
Three
Four +
21%
25%
54%
Girls only
Boys only
Boys and girls
# GIRLS IN HOUSEHOLD
22%
51%
21%
5%
2%
None
One
Two
Three
Four +

93
Respondent Profile
75%
22%
3%
None
One
Two +
# KIDS 8-14 IN HH# KIDS < 8 IN HH
KID AGE MIX
25%
53%
42%
19%
11%
None
One
Two
Three
Four +
29%
52%
3%
16%
8-14 only
8-14 and younger
8-14 and older
8-14 and both
# KIDS > 14 IN HH
63%
30%
6%
1%
One
Two
Three
Four +

95
Objective and Methodology
Objective
 To understand the basic financial knowledge, attitudes, and behaviors of both parents of
children ages 8-14 and their children ages 8-14.
Methodology
 T. Rowe Price commissioned an online survey of parents of children ages 8-14 and their
children ages 8-14.
 The survey was fielded from 2/4/16 to 2/11/16, with parent quotas of approximately 50%
men and 50% women.
 A total of 1,086 parents and 1,086 children ages 8-14 in the U.S. participated; the sampling
error for a sample of 1,086 is +/-3% at the 95% confidence interval.
 The survey was fielded through MetrixLab, Inc.

2016 Parents, Kids and Money Survey Results

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2016 Parents, Kids and Money Survey Results