Talking to Kids About Money Rated More Valuable than “The Birds and The Bees”
Talking to your kids about money is now rated as important by 96% of parents, an even higher percentage than talking to them about the birds and the bees (89%). This has led their Millennial children to have a heightened awareness about budgets, greater financial confidence and more ambition to retire early.
The study, conducted by Chase and the Center for Research on Consumer Financial Decision Making at the University of Colorado, brought together people from different generations to talk about money. They found parents of Boomers avoided talking about money, while Millennials’ parents talked about it a lot. In fact, only 20% of Boomers were told by their parents how much money they made, compared to 54% of Millennials. 34% of Boomers said their parents had the money talk with them, compared to 74% of Millennials.
These talks with their parents proved helpful for Millennials, who began saving for retirement 17 to 23 years sooner than Boomers. They are also more confident in their financial decisions and feel more prepared for the future. In fact, Millennials are planning to retire by 60, which is almost a decade earlier than Boomers.
Millennials are also more comfortable talking about money than Boomers. 82% said they would talk to friends, family and professional advisors about their finances.
“We find that different generations have different family obligations and different willingness to talk money with other family members. Perhaps that is because Millennials are in tighter financial circumstances and need to talk with family members and others to cope.” said Professor John Lynch, who directs the Center for Research on Consumer Financial Decision Making.
“Our findings reinforce the importance of having open and honest conversations about finances – no matter where you are in your life,” said Peter Wall, Chief Market Strategist for Chase.