Parents See Room for Improvement on Personal Financial Knowledge, With the Majority Feeling They Could Be Doing More to Leverage Teachable Moments and Equip Kids with Financial Competence
BALTIMORE, July 21 /PRNewswire-FirstCall/ -- School is out and parents' report cards are in... According to the T. Rowe Price Parents, Kids & Money Survey, parents on average grade themselves a B- when it comes to their total understanding of basic saving and investing concepts such as setting goals, the importance of saving, spending smartly, inflation, and diversification. The study of 504 moms and dads nationwide also revealed that 60 percent of parents feel that financial discussions do not happen nearly enough, and more than half are worried they could be doing more to prepare their children to be financially competent by the time they turn 18.
The survey coincides with the recent launch of The Great Piggy Bank Adventure(SM), two interactive financial education and entertainment experiences created by T. Rowe Price in collaboration with Walt Disney Imagineering and Walt Disney Parks and Resorts Online. The Great Piggy Bank Adventure(SM), which offers lessons on goal-setting, saving and spending wisely, staying ahead of inflation, and diversifying your assets, comes to life through an online board game at www.thegreatpiggybankadventure.com and through a hands-on, interactive experience at INNOVENTIONS at Epcot(R) at the Walt Disney World(R) Resort in Florida.
"The survey confirms that parents want to impart sound financial values to their children, but they do not always have the tools or feel knowledgeable enough to teach them," said Stuart Ritter, CFP(R), a financial planner with T. Rowe Price. "We have a long history at T. Rowe Price of educating investors, and The Great Piggy Bank Adventure(SM) enables us to educate families on core financial principles while also providing parents with teachable moments that will empower them to talk to their kids about the basics of personal finance and involve them more in family financial matters."
Although the current economic conditions have served as a catalyst to encourage nearly half of parents to have more conversations with their kids about money, the survey revealed that more than half of parents feel they have to periodically reinforce money lessons because their kids quickly forget them.
Regular occurrences such as giving an allowance, shopping together, getting birthday money, or balancing a checkbook are ideal times to impart basic financial lessons, especially around setting goals and spending wisely, Ritter says. However, according to the survey, most parents do not always leverage these occasions.
