T. Rowe Price's 2015 Parents, Kids & Money Survey
BOSTON (CBS) - T. Rowe Price's annual Parents, Kids & Money Survey was released in March. And you would think after seven years of doing this survey nothing would be new. Not so. They keep digging a bit deeper.
What they have found is:
- More kids are getting an allowance: 70% of parents reported giving their kids an allowance in 2015. Only 48% did so in 2011.
- Kids have to earn it though: 85% of kids who get allowance are required to earn it vs. 15% of kids who get allowance with no strings attached.
- Kids are getting more money. They found about 10% getting $51 or more per week
The survey also found that parents want kids to learn about money the hard way.
- They are letting kids make mistakes: 58% of parents let their kids make bad financial decisions so that they can learn from their own mistakes.
- Parents use credit cards and loans as teaching tools: 52% of parents believe that their kids should have their own credit cards to learn about managing money and 61% think it's important for kids to have their own student loans so that they can learn about debt and responsibility.
- But kids don't understand credit or loans: Only 21% of kids feel knowledgeable about credit and only 19% of kids feel knowledgeable about student loan debt. These are really important lessons for kids to learn about before heading to college.
- Kids don't think parents are great teachers: Less than half of kids (46%) say their parents are doing a good job.
- 35% of students say that they learn more about money at school than they do from their parents.
- 75% of parents think there should be a personal finance requirement to graduate from high school.
- 91% of parents feel it is appropriate for kids to learn about financial matters in school, compared with only 70% in 2010.
For help teaching your kids start with T. Rowe Price's MoneyConfidentKids, a resource for parents and educators with money games, tips, and information.
They also have a new game, STAR BANKS ADVENTURE, which I played with some kids. Give it a try.
....................
You can hear Dee Lee's expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m., 3:55 p.m., and 7:55 p.m.
Subscribe to Dee's Money Matters newsletter here.
