More than 70 per cent of parents in the US are regularly talking to their children about financial topics, from saving and spending to working within financial services; according to new research by Chase.
Despite once being viewed as a taboo topic, parents today are bringing financial conversations to the table and a majority are talking about their family’s own financial situation.
New research from Chase shows that parents are unwavering in their commitment to financial health in the New Year and have already established a number of top financial resolutions this year including paying down debt, improving credit scores, paying bills on time, and building savings or rainy-day funds.
Conducted in partnership with Morning Consult, the Chase Financial Health Study surveyed more than 4,000 adults on the state of their finances, attitudes towards talking to their kids about saving and budgeting, and actions they plan to take in the New Year to improve their financial health. The survey polled parents of kids ages 17 and under.
“These findings underscore that parents are bringing their kids into conversations about money to help them understand how to budget, save and spend mindfully,” said Matt Gromada, Managing Director, Head of Product Development and Innovation at Chase. “A good understanding of how to manage your money starts with what kids see and learn at home. By establishing habits early, kids can be one step closer to a strong financial future of their own.”
Conversations amongst parents and kids ages 17 and younger about finances are happening.
- 70 per cent of parents are currently teaching their children about the basics of finances (like saving, investing, using a bank)
- 62 per cent of parents talk about their family’s own financial situation, which may include their ability to purchase certain things, take a family trip or participate in extracurricular activities
- 66 per cent of parents cited they are helping their child plan their financial future, which may include things like setting up a bank account, saving money for major purchases and career expenses
- Among parents having regular financial conversations with their children, teaching kids about saving was the top family-related financial goal for 2022 (32 per cent), followed by talking with kids more about finances generally (26 per cent), having kids do regular chores to earn money (25 per cent), and teaching them about money, including monthly bills and expenses they don’t know about (24 per cent)
Parents today feel good overall about their financial health, but are stressed about making ends meet.
- Parents rate their personal financial situation as good (67 per cent) and 60 per cent say that their financial situation will improve in the next year – The top financial stressor for parents was cited as meeting their family’s basic living expenses, like paying for food and utilities (40 per cent), followed by paying for new clothes for their kids (32 per cent) and emergency expenses (25 per cent)
- Stress over emergency and back to school expenses has ticked upward since Q2 of this year
Paying down debt, improving credit scores, paying bills on time, and building a rainy-day fund are top financial goals for parents in the New Year.
- 41 per cent of parents of kids ages 17 and younger indicate that paying down debt in 2022 is their top savings goal
- 37 per cent of parents of kids ages 17 and younger aspire to improve their credit score in 2022
- Parents of younger kids (ages 5 and younger) are more focused on saving for a new home or major life events, while parents of older kids (ages 13 – 17) are more likely to be saving for retirement
Parents indicate that they’re interested in digital tools, like mobile apps, to reach financial goals.
- Almost half of the parents of kids ages 17 and younger would be interested in a digital tool from banks to help them budget or save automatically (44 per cent).
- Mobile app access and improvement were among the top three areas parents of kids ages 17 and younger would like banks to focus on (25 per cent), and even more so among parents of younger kids (ages 5 and younger) (29 per cent).