T. Rowe Price’s 12th annual Parents, Kids & Money Survey, which sampled more than 2,000 parents of 8- to 14-year-olds and their kids, revealed that families who try to “keep up with the Joneses” are more reluctant (62% vs. 30%) to have money conversations with their kids and more likely to have risky financial behaviors and habits. Overall, many parents reported having some reluctance discussing financial topics with their kids (41%).
“Discussing money with kids is particularly important in the midst of the coronavirus pandemic, when many families have been affected—from smaller consequences like a canceled vacation to a parent who has lost a job,” says Roger Young, CFP®, a senior financial planner at T. Rowe Price. “While parents may question their ability to teach money topics, they can take comfort that there are resources available to help them. Parents who put on a financial façade could especially benefit from these resources, as we see an increased reluctance among them to discuss money with their kids.”
To help parents discuss money with their kids, the firm created MoneyConfidentKids.com, which provides free online games for kids; tips for parents that are focused on financial concepts, such as goal setting, spending versus saving, inflation, asset allocation, and investment diversification; and classroom lessons for educators. The site also includes a newly created student workbook and teaching guide, in partnership with Scholastic, designed to make money concepts more accessible and relatable to life’s milestones.
PUTTING UP A FINANCIL FACADE
CONVERSATIONS WITH KIDS
MONEY CONFIDENT KIDS is a registered trademark of T. Rowe Price Group, Inc.
ABOUT THE SURVEY
The 12th annual T. Rowe Price Parents, Kids & Money Survey, conducted by Dynata, aimed to understand the basic financial knowledge, attitudes, and behaviors of both parents of kids ages 8 to 14 and their kids ages 8 to 14. The survey was fielded from January 6, 2020, through January 20, 2020, with a sample size of 2,030 parents and 2,030 kids ages 8 to 14. The margin of error is +/-2.1 percentage points. All statistical testing done among subgroups is conducted at the 95% confidence level. Reporting includes only findings that are statistically significant at this level.
ABOUT T. ROWE PRICE
Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. (NASDAQ-GS: TROW), is a global investment management organization with $1.42 trillion in assets under management as of November 30, 2020. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. For more information, visit troweprice.com or our Twitter, YouTube, LinkedIn, Instagram, and Facebook sites.
T. Rowe Price
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