Detailed Results 10TH ANNUAL PARENTS, KIDS & MONEY SURVEY

Transcription

1 Detailed Results 10TH ANNUAL PARENTS, KIDS & MONEY SURVEY

2 Contents Young Adult Survey Findings 3 Financial Education 4 Early Experience With Money and Finances 14 Current Finances 19 Cuts by Financial Education 36 Cuts by Parental Discussions 45 Respondent Profile 53 Parent Survey Findings 60 Household Finances 61 Household Debt 66 Emergency Fund 72 Retirement Savings 77 Parental Knowledge, Attitudes and Behaviors 84 Teaching Kids About Finances 92 Allowance 109 Respondent Profile 114 Objective and Methodology 117 Saving for kids education 2

3 YOUNG ADULT SURVEY FINDINGS

4 FINANCIAL EDUCATION

5 Financial Education Q7. Which of the following types of financial education did you receive when you were younger? (check all that apply) I had a specific class/course dedicated to financial education Financial education was taught at school as part of the curriculum in one of my regular classes I had financial education in an afterschool/weekend program/course 10% 24% 33% N=590 Types of Fin. Ed. % One 88% Two 10% Three 2% None of the above 41% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 5

6 Courses Dedicated to Financial Education Q8. In what grade(s) did you have a specific class/course dedicated to financial education? (check all that apply) Q9. What types of things did you learn about in your financial education classes? (check all that apply) 6th grade or earlier 2% Banking 71% 7th grade 3% Credit and financing 60% 8th grade 9th grade 10th grade 11th grade 12th grade In college Don't recall 7% 10% 16% 2% 28% 39% 37% Interest Basic life budget skills Investing Insurance Paying for college Retirement savings Inflation 40% 38% 33% 31% 60% 59% 51% Asset allocation 15% Diversification 14% # of Courses % One 74% Two 16% Three+ 10% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=242 (had specific course dedicated to financial education) 6

7 Financial Education as Part of Another Course Q10. In what grade(s) were you when you had financial education as part of the curriculum in of your regular classes? (check all that apply) Q13. What types of things did you learn about in the financial education that was provided in a broader course? (check all that apply) 3rd grade 4th grade 5th grade 6th grade 7th grade 8th grade 9th grade 2% 3% 4% 5% 7% 8% 20% Banking Basic life budget skills Credit and financing Interest Investing Paying for college 37% 66% 62% 57% 48% 47% 10th grade 26% Insurance 30% 11th grade 34% Retirement savings 28% 12th grade In college Don't recall 4% 21% 36% Inflation Asset allocation Diversification 12% 12% 27% # of Courses % One 65% Two 20% Three+ 15% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=334 (had financial education as part of a regular class) 7

8 Financial Education as Part of Another Course Q11. Which regular classes included financial education as part of the curriculum? (check all that apply) Q12. For how long did the financial education you received within a broader course last? Math 46% One lesson 4% Family and consumer sciences Social studies 26% 37% More than one lesson, but less than a week 11% Technology 18% 1-2 weeks 23% Science 15% 3-4 weeks 19% Media 11% More than a month 38% Other 12% Don't recall 6% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=334 (had financial education as part of a regular class) 8

9 After-School/Weekend Financial Education Q14. In what grade(s) were you when you had financial education in an after-school/weekend course? (check all that apply) Q16. What types of things did you learn about in the financial education that was provided in an after-school/weekend course? (check all that apply) 3rd grade 4th grade 5th grade 6th grade 7th grade 8th grade 9th grade 3% 6% 3% 7% 7% 8% 12% Banking Credit and financing Paying for college Investing Basic life budget skills Interest 36% 55% 52% 52% 45% 44% 10th grade 18% Insurance 36% 11th grade 28% Retirement savings 30% 12th grade In college Don't recall 6% 26% 37% Diversification Inflation Asset allocation 13% 12% 12% # of Courses % One 66% Two 21% Three+ 13% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=97 (had financial education in an after-school/weekend course) 9

10 After-School/Weekend Financial Education Q15. For how long did the financial education you received in an after-school/weekend course last? One class 16% More than one class, but less than a week 9% 1-2 weeks 16% 3-4 weeks 23% More than a month 32% Don't recall 3% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=97 (had financial education in an after-school/weekend course) 10

11 Grades & Topics Across All Types of Fin Ed Q8, Q10, Q14. In what grade(s) were you when you had financial education? (Check all that apply) Q9, Q13, Q16. What types of things did you learn about in the financial education? (Check all that apply) 3rd grade 4th grade 5th grade 6th grade 7th grade 8th grade 9th grade 10th grade 11th grade 12th grade In college 2% 2% 3% 4% 5% 8% 16% 22% 33% 34% 44% Banking Basic life budget skills Credit and financing Interest Investing Paying for college Insurance Retirement savings Inflation Diversification Asset allocation 13% 13% 69% 62% 60% 52% 50% 41% 36% 30% 28% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=590 (Had financial education classes) 11

12 Financial Education Performance and Utility Q18. What grades did you usually get in your financial literacy courses? Q17. Currently, how often do you rely on information you learned in your financial literacy classes? Above average 58% Never 12% Average 40% Occasionally 63% Below average 2% Frequently 25% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=590 (had financial education classes) 12

13 Attitudes About Financial Education Q19. How much do you agree or disagree with each of the following statements? (displaying percent who agree) I m very glad that I had financial literacy courses when I was younger Having financial literacy classes made me much more aware of money and how finances work My financial literacy courses helped me to develop good financial behaviors/habits I wish my financial literacy course covered more than it did Having financial literacy classes sparked me to want to learn more about money and finances Having financial literacy courses when I was younger impacted my decisions about college 84% 78% 76% 73% 72% 64% Despite taking a financial literacy course, I don t feel prepared for the financial responsibility that comes with adulthood 53% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=590 (had financial education classes) 13

14 Influence of Financial Education Q20. Which had a stronger influence on your financial habits and behaviors, what you learned from your parents or what you learned in financial literacy courses? What I learned from my parents had a lot more influence 34% What I learned from my parents had a little more influence 20% They had equal influence 27% What I learned in financial literacy courses had a little more influence 12% What I learned in financial literacy courses had a lot more influence 8% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=590 (had financial education classes) 14

15 EARLY EXPERIENCE WITH MONEY AND FINANCES

16 Age You First Q21. Started earning money Q22. Got a savings account Q23. Got a checking account < Don't recall 2% 2% 2% 5% 6% 11% 12% 11% 13% 25% 24% < Don't recall 12% 2% 2% 4% 4% 5% 8% 15% 11% 13% 24% < Don't recall 2% 1% 1% 2% 2% 5% 7% 21% 15% 11% 34% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 16

17 Allowance Q24. Did you get an allowance when you were a kid? Q25. How old were you when you started getting allowance? Yes, no requirements 8% Five or younger Six 7% 9% N=609 Seven 12% Yes, but had to earn it 53% Eight 18% Nine 7% No 39% Ten Eleven or older 18% 29% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 17

18 Financial Discussions With Parents Q26. How often did your parents discuss financial topics with you when you were younger? Q27. How old were you when your parents started discussing financial topics with you? Never Once a month or less 14% 33% Five or younger Six Seven 4% 2% 4% A few times a month Once a week A few times a week Once a day or more 9% 12% 5% 27% N=857 Eight Nine Ten Eleven Twelve Thirteen 6% 3% 14% 6% 10% 11% Fourteen 9% Fifteen or older 30% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (Total respondents) 18

19 Financial Discussions With Parents Q28. How often did your parents discuss each of the following with you when you were a teenager? (four-point scale displaying frequently or occasionally) Banking 35% 47% 82% Basic life budget skills 41% 40% 81% Paying for college 33% 39% 72% Credit and financing 23% 43% 66% Insurance 20% 37% 57% Interest 15% 38% 53% Investing 16% 28% 44% Retirement savings 10% 26% 36% Inflation 5% 22% 27% Diversification 5% 18% 23% Frequently Occasionally Asset allocation 5% 15% 20% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=857 (parents discussed financial topics) 19

20 CURRENT FINANCES

21 Family Financial Support Q32. Are you currently receiving any kind of financial support from your parents or other family members? Yes, my family covers all of my expenses 9% Yes, my family covers most of my expenses 16% Yes, my family covers some of my expenses 31% No, I do not receive any financial support from my family 44% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 21

22 Budgeting Q33. Do you have a budget? Q34. Which of the following best describes how you approach your budget? Yes 77% N=772 I include savings as a line item in my budget 54% No 23% I budget for expenses only 46% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 22

23 Saving vs. Spending Q35. Would you consider yourself more of a saver or a spender? Q36. Would you consider your parents/guardians to be savers or spenders? Definitely a spender 14% One was a saver and one was a spender 46% More of a spender than a saver 35% Both were savers 28% More of a saver than a spender 40% Both were spenders 19% Definitely a saver 12% Not sure 8% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 23

24 Financial Goals Q37. Are you currently working toward any financial/savings goals? Open-end responses: type of goal Yes No 46% 54% N=539 General saving House Pay off debt Car College Specific dollar amount Vacation Purchase Move Retirement Invest Emergency fund 5% 4% 4% 3% 2% 2% 12% 12% 11% 11% 16% 16% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 24

25 Goods vs. Experiences Q38. What do you tend to spend your money on more? Material goods 38% Experiences 16% Both equally 46% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 25

26 Owning a Car and Home Q39. What is your attitude toward owning a home? Q40. What is your attitude toward owning a car? I would like to own a home when the time is right 78% I would like to own a car when the time is right 40% I am a homeowner 15% I own a car 56% I have no interest in owning a home 8% I have no interest in owning a car 4% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 26

27 Attitudes About Finances Q41. How much do you agree or disagree with each of the following statements? (displaying percent who agree) My parents often emphasized the importance of saving money I m good with money and finances My parents let me manage my own money when I was a kid Once I had to start dealing with real-world finances, I was surprised at how little I knew about managing money Seeing my parents deal with the Great Recession has made me more conservative with my money I spend too much of my money going out and on things I don t need I m more conservative with money than my parents The Great Recession caused my family to adapt our spending and saving habits My parents fought about money a lot when I was growing up My parents generally bought me whatever I wanted My parents seemed reluctant to talk to me about money and finances 78% 73% 67% 64% 57% 55% 53% 51% 48% 42% 41% Talking about money was taboo in my family when I was growing up 33% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (Total respondents) 27

28 Financial Accounts Q42. Which of the following types of accounts do you have? (check all that apply) Checking account Savings account 401(k) with current employer College savings account for myself Investment account Savings bond 401(k) with previous employer College savings account for my kids CD IRA None of the above 17% 16% 13% 11% 10% 8% 7% 5% 6% 71% 81% Of the 412 respondents who are currently employed full time, 128 (31%) have a 401(k) account with their current employer T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 28

29 Family Contribution to Financial Accounts Q43. With regard to your financial accounts, how much of the money you have was contributed by your parents or other family members? None of the money was contributed by parents/family members 45% Some of the money was contributed by parents/family members 38% Most of the money was contributed by parents/family members 15% All of the money was contributed by parents/family members 3% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=940 (have financial accounts) 29

30 Withdrawing From Retirement Accounts Q44. Have you ever taken money out of a retirement account? Yes 8% No 33% I've never had a retirement account 59% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 30

31 Emergency Fund and Retirement Savings Q45. What statement best characterizes your attitude toward saving for retirement? Q46. Do you have an emergency fund? Saving for retirement is an important priority so I ll find a way to save 39% Yes 48% I would like to save for retirement but I don t have the money to do so 46% I have no interest in saving for retirement because it s so far away 14% No 52% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 31

32 Contributions to Savings Q47. Including retirement savings, what percent of your income do you put toward savings? Less than 5% 29% 5% to 9% 10% to 14% 18% 22% 15% to 19% 20% to 24% 9% 11% 25% to 29% 3% 30% or more 8% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 32

33 Use of Credit Cards Q48. Which statement best characterizes your use of credit card financing? I don t have credit cards 32% I never carry a balance on my credit cards 15% I rarely carry a balance on my credit cards I have used credit cards occasionally to finance things I can t immediately afford I have used credit cards regularly to finance things I can t immediately afford 12% 18% 17% I have carried credit card debt for as long as I can remember 6% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 33

34 Types of Debt Q49. Do you (or will you) have student loan debt? Q50. Which of the following types of debt do you have? (check all that apply) Yes, I currently have student loan debt Yes, I will have student loan debt 19% 30% Payday loan Medical debt Friend/relative debt 8% 14% 12% No 51% Credit card debt 27% Car loan 21% Other 15% None of the above 34% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 34

35 Family Contribution to Debt Payment Q51. How much of your current debt is paid for by your parents or other family members? None of it 66% Some of it 24% Most of it 6% All of it 4% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=658 (currently have debt) 35

36 Attitudes About Finances Q52. How much do you agree or disagree with each of the following statements? (displaying percent who agree) I think financial literacy course should be required in all schools 86% I wish I was more financially independent 68% My parents were good role models when it came to money and finances 65% My parents were often stressed about money 64% My parents kept a pretty close eye on my money and what I did with it 43% I don t make enough money to cover what I spend 38% I ve lost track of how much I spend monthly on subscriptions like Netflix, Spotify, and other subscription services 27% Without credit cards, I would not be able to cover my monthly expenses 25% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 36

37 CUTS BY FINANCIAL EDUCATION

38 Budgeting Q33. Do you have a budget? Q34. Which of the following best describes how you approach your budget? Yes 72% 81% N=772 I include savings as a line item in my budget 47% 57% No 19% 28% Had Financial Education Did Not Have Financial Education T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 38

39 Attitudes About Finances Q41. How much do you agree or disagree with the following statement? (displaying percent who agree) I m good with money and finances 67% 77% Had Financial Education Did Not Have Financial Education T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 39

40 Emergency Fund andretirement Savings Q45. What statement best characterizes your attitude toward saving for retirement? Q46. Do you have an emergency fund? Saving for retirement is an important priority so I ll find a way to save 35% 42% Yes 38% 55% Had Financial Education Had No Financial Education T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 40

41 Withdrawing From Retirement Accounts Q44. Have you ever taken money out of a retirement account? No 27% 37% I've never had a retirement account 52% 70% Had Financial Education Had No Financial Education 48% of young adults who had financial education have retirement savings, compared with 30% of those who did not have financial education. T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 41

42 Financial Accounts Q42. Which of the following types of accounts do you have? (check all that apply) Checking account Savings account College savings account for myself Investment account College savings account for my kids CD None of the above 21% 8% 16% 8% 11% 3% 9% 4% 2% 10% 79% 84% 73% 67% Had Financial Education Had No Financial Education T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 42

43 Contributions to Savings Q47. Including retirement savings, what percent of your income do you put toward savings? Less than 10% 39% 59% Had Financial Education Had No Financial Education T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 43

44 Financial Discussions With Parents Q28. How often did your parents discuss each of the following with you when you were a teenager? (four-point scale displaying frequently or occasionally) Banking 79% 85% Basic life budget skills 75% 84% Paying for college 65% 75% Credit and financing 56% 72% Insurance 48% 63% Interest 43% 59% Investing 32% 52% Retirement savings 26% 42% Inflation Diversification Asset allocation 10% 16% 19% 26% 26% 32% Had Financial Education Did Not Have Financial Education T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=857 (parents discussed financial topics) = Statistically significant difference at alpha=.05 44

45 Desired Discussions With Parents Q29. Now that you re older, what do you wish your parents had discussed more with you? (check all that apply) Credit and financing 40% 49% Investing 40% 47% Basic life budget skills 35% 47% Insurance 33% 41% Had Financial Education Did Not Have Financial Education T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 45

46 CUTS BY PARENTAL DISCUSSIONS

47 Budgeting Q33. Do you have a budget? Q34. Which of the following best describes how you approach your budget? Yes 73% 88% N=772 I include savings as a line item in my budget 51% 59% Parents Discussed Financial Topics Yes No T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 47

48 Emergency Fund and Retirement Savings Q45. What statement best characterizes your attitude toward saving for retirement? Q46. Do you have an emergency fund? Saving for retirement is an important priority so I ll find a way to save 37% 45% Yes 43% 60% Parents Discussed Financial Topics Yes No T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 48

49 Withdrawing From Retirement Accounts Q44. Have you ever taken money out of a retirement account? No 29% 42% I've never had a retirement account 44% 64% Parents Discussed Financial Topics Yes No T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 49

50 Financial Accounts Q42. Which of the following types of accounts do you have? (check all that apply) Checking account 76% 83% College savings account for myself 12% 25% College savings account for my kids None of the above 2% 6% 7% 14% Parents Discussed Financial Topics Yes No T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 50

51 Contributions to Savings Q47. Including retirement savings, what percent of your income do you put toward savings? Less than 10% 34% 52% Parents Discussed Financial Topics Yes No T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 51

52 Financial Discussions With Parents Q28. How often did your parents discuss each of the following with you when you were a teenager? (four-point scale displaying frequently or occasionally) Banking 80% 88% Basic life budget skills 76% 90% Paying for college 66% 85% Credit and financing 58% 84% Insurance 49% 76% Interest 42% 81% Investing 30% 77% Retirement savings 25% 60% Inflation 19% 46% Diversification Asset allocation 12% 15% 38% 39% Parents Discussed Financial Topics Yes No T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=857 (parents discussed financial topics) = Statistically significant difference at alpha=.05 52

53 Desired Discussions With Parents Q29. Now that you re older, what do you wish your parents had discussed more with you? (check all that apply) Credit and financing 32% 48% Investing 33% 46% Basic life budget skills 29% 44% Insurance 22% 41% Parents Discussed Financial Topics Yes No T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) = Statistically significant difference at alpha=.05 53

54 RESPONDENT PROFILE

55 Respondent Profile Q1. Age Q2. Region % 13% 13% 14% 15% 15% 19% South Midwest West Northeast 19% 19% 24% 38% Q3. Gender 3% Q4. Race/Ethnicity (check all that apply) White/Caucasian 70% 50% 47% Hispanic/Latino Black/African American 13% 16% Asian 5% Male Female Not Male or Female Native American 3% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 55

56 Employment Status and Income Q5. What is your current employment status? Q6. What is your annual personal income? Less than $5,000 9% Employed full-time Employed part-time 34% 41% N=749 $5,000 to less than $10,000 $10,000 to less than $15,000 $15,000 to less than $20,000 $25,000 to less than $30,000 9% 10% 11% 14% $30,000 to less than $35,000 8% Not currently employed 25% $35,000 to less than $40,000 $40,000 to less than $50,000 6% 7% $50,000 to less than $75,000 14% $75,000 to less than $100,000 8% $100,000 or more 5% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 56

57 Current Living Arrangements Q55. What are your current living arrangements? Still live with parents 32% Was on my own, but now back living with parents Live with other family members 5% 5% Live in college housing 10% Rent live with others 23% Rent live alone Own my own home 12% 11% Other 2% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 57

58 Paying for Expenses Q56. Which of the following expenses do you contribute to on a regular basis? (check all that apply) Food 66% Utilities 32% Rent 30% Other 3% None of the above 23% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=420 (live with parents or other family) 58

59 Education Q54. What is the highest level of education you ve completed? Currently in high school 4% High school diploma 33% Currently in college 34% College degree 21% Currently in graduate school 4% Graduate degree 4% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 59

60 Marital Status and Children in Household Q57. What is your current marital status? Q58. How many children do you have? Single 84% None 82% Married 15% One 13% Divorced/separated 1% Two or more 5% T. Rowe Price 2018 Parents, Kids & Money Survey Year Old Survey N=1,000 (total respondents) 60

61 PARENT SURVEY FINDINGS

62 HOUSEHOLD FINANCES

63 Household Budget Q20. Do you have a household budget? Q21. Which of the following best describes how you approach your budget? Yes 69% N=702 I include savings as a line item in my budget 47% No 31% I budget for expenses only 53% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 63

64 Concern About Financial Security Q22. How much do each of the following cause you to worry about your financial security? (five-point scale displaying very much or extremely) Health care costs 48% Political environment 33% Tax reforms 27% Lack of financial knowledge 20% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 64

65 Attitudes and Behaviors Q23. How much do you agree or disagree with the following statements? (displaying percent who agree) I love hunting for bargains, promo codes and clipping coupons 86% I have taken measures to cut back spending in the last year Following a budget has helped my financial situation I wish that I received more financial education in school I rarely carry cash anymore When managing my finances, I always make sure that I pay myself first by including savings in the budget I don t make enough money to cover what I spend My spouse and I don t agree on how to budget for the household 36% 40% 45% 78% 74% 70% 65% I have a household budget, but I rarely look at it Without credit cards I would not be able to cover my monthly expenses I hide purchases from my spouse so he/she doesn t know how much I spend I ve lost track of how much I spend monthly on subscriptions like Netflix, Spotify, and other subscription services 26% 26% 24% 20% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 65

66 Keeping Financial Secrets Q65. How much do you agree or disagree with the following statements? I keep financial secrets from my spouse/partner. Strongly disagree 59% Somewhat disagree 20% Somewhat agree Strongly agree 5% 16% 21% Agree T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=775 (married) 66

67 HOUSEHOLD DEBT

68 Use of Credit Cards Q12. Which statement best characterizes your use of credit card financing? I don't have credit cards 17% I never carry a balance on my credit cards 18% I rarely carry a balance on my credit cards 15% I have used credit cards occasionally to finance things I can t immediately afford 22% I have used credit cards regularly to finance things I can t immediately afford I have carried credit card debt for as long as I can remember 14% 14% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 68

69 Bankruptcy Q14. Have you ever declared personal bankruptcy? Q15. Do your kid(s) know that you once declared bankruptcy? Yes 14% N=140 Yes 44% No, but I've considered it 18% No, I've never considered it 68% No 56% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 69

70 Types of Debt Q14. Which of following types of debt do you have? (check all that apply) Credit card debt Mortgage Car loan Student loan (from parent's education) Medical debt Friend/relative debt Payday loan Student loan (from kid's education) Other I don't have any debt 8% 7% 4% 3% 10% 24% 22% 45% 49% 53% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 70

71 Carrying a Credit Card Balance Q17. How long have you been carrying a balance on credit cards? Less than a year 26% 1-2 years 28% 3-5 years 21% More than 5 years 25% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=534 (have credit card debt) 71

72 Amount of Credit Card Debt Q18. What is the approximate balance (i.e., the amount you still owe) on all your credit cards now? Less than $1,000 19% $1,000 to $4,999 32% $5,000 to $9,999 20% $10,000 to $14,999 14% $15,000 to $19,999 $20,000 or more 6% 8% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=534 (have credit card debt) 72

73 EMERGENCY FUND

74 Savings Accounts 24. Which of following do you have? (check all that apply) Money saved for retirement An emergency fund to cover unexpected expenses 50% 47% Money saved for other goals Money saved for kids college education 35% 34% None of the above 27% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 74

75 Size of Emergency Fund Q27. For how many months would your emergency fund cover your family s expenses? Q26. Approximately how much money do you currently have in your emergency fund? One month or less 27% Less than $1,000 16% Two months Three months Four months 7% 20% 18% $1,000 to $3,999 $4,000 to $9,999 19% 29% Five months 3% $10,000 to $39,999 23% Six months Seven to 12 months 9% 7% $40,000 or more 12% More than 12 months 8% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=471 (have an emergency fund) 75

76 Separate Emergency Fund Account Q28. Do you maintain a separate account for your emergency fund, or is it kept in an account with other funds? Yes, I maintain a separate account for my emergency fund 64% No, I do not maintain a separate account for my emergency fund 36% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=471 (have an emergency fund) 76

77 Using the Emergency Fund Q29. What types of things have you used emergency fund money for in the past two years? (check all that apply) Non-emergencies Holiday spending Vacation Pay off debt Day-to-day expenses Kids' primary education Down payment on a home Kid's college education Childcare/daycare Wedding Emergencies Car purchase or repair Home repair/renovation Health care costs To pay taxes To cover expenses while unemployed Other Nothing 6% 4% 3% 3% 1% 3% 10% 9% 18% 16% 16% 14% 23% 18% 31% 30% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=471 (have an emergency fund) 77

78 RETIREMENT SAVINGS

79 Retirement Accounts Q31. What types of accounts do you have for your retirement savings? (check all that apply) 401(k) plan 78% Traditional IRA Regular savings account Roth IRA 31% 27% 33% Annuity or life insurance policy Certificate of deposit (CD) Taxable investment account 12% 12% 16% Other 3% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=502 (have retirement savings) 79

80 Amount of Retirement Savings Q30. Approximately how much money do you currently have in your retirement savings? Less than $10,000 19% $11,000 to $49,999 23% $50,000 to $99,999 $100,000 to $199,999 $200,000 to $399,999 $400,000 or more 14% 15% 15% 14% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=502 (have retirement savings) 80

81 Mixed Retirement Accounts Q32. Do the regular savings or taxable investment accounts you use for retirement savings also have money that is not going to be used for retirement? Yes 59% No 41% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=175 (have regular savings or taxable investment accounts for retirement savings) 81

82 Using Money From Retirement Accounts Q33. How many times have you taken money out of your retirement savings in the past two years? Never 76% Once 16% Two to four times 7% Five times or more 1% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=486 (have retirement savings and not retired) 82

83 Using Money From Retirement Accounts Q34. Which of the following things have you paid for with money taken from retirement savings in the past two years? (check all that apply) Non-emergencies Pay off debt Day-to-day expenses Down payment on a home Replenish emergency fund Vacation Holiday spending Kids' primary education Kids' college education Wedding Childcare/daycare Emergencies 18% 16% 14% 12% 10% 9% 8% 8% 7% 31% Home repair/renovation Car purchase or repair To cover expenses while unemployed Health care costs To pay taxes Other 3% 19% 16% 16% 15% 15% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=118 (have taken money out of retirement savings) 83

84 Anxiety About Saving for Retirement Q44. How much do you agree or disagree with the following statement? Conversations about saving for retirement usually fill me with a lot of anxiety. Strongly disagree 17% Somewhat disagree 27% Somewhat agree 36% Strongly agree 20% 56% Agree T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 84

85 PARENTAL KNOWLEDGE, ATTITUDES, AND BEHAVIORS

86 Financial Education Q59. Which of the following types of financial education did you receive in school? (check all that apply) A specific class/course dedicated to financial education 19% Financial education was taught at school as part of the curriculum in one of my regular classes 28% None of the above 58% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 86

87 Courses Dedicated to Financial Education Q60. When did you receive any type of financial education at school? (check all that apply) 3rd grade 4th grade 5th grade 6th grade 7th grade 8th grade 9th grade 10th grade 11th grade 12th grade In college Don't recall 3% 3% 5% 6% 8% 12% 10% 19% 23% 28% 31% 41% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 87

88 Parents Financial Knowledge Q57. Overall, how knowledgeable are you about each of the following? (five-point scale displaying very or extremely) Money 58% Budgeting 54% Managing expenses 54% Investing 23% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 88

89 Financial Resources Q58. When it comes to financial matters, which of the following do you consult? (check all that apply) Google/my own research 43% Parents Friends Financial websites or apps 30% 29% 33% Traditional financial advisor 24% Financial news channels 16% Social media Books or other materials by celebrity spokespeople 8% 8% Roboadvisor 3% None of the above 19% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 89

90 Parental Behaviors Q51. Which of the following things have you done? (check all that apply) Used money as incentive for good grades or good behavior 53% Been short with my kids because I am stressed about money 37% Told my kids we can t afford things when we really can Told my kids we have less money than we really do 27% 25% Showed financial statements to my kids Used money my kids have received as gifts to buy something for myself Told my kids we have more money than we really do 10% 8% 9% None of the above 18% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 90

91 Parental Attitudes and Behaviors Q63. How much do you agree or disagree with the following statements? (displaying percent who agree) I worry that I spoil my kids 56% I spend too much money on my kids for things they don t really need 56% I sometimes feel ashamed that I m not providing enough for my kids 52% I have gone into debt to pay for something my kids wanted 35% I have borrowed from my kids piggy bank without paying them back 21% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 91

92 Parents Knowledge of Saving and Investing Q45. Please indicate whether each of the following statements is true or false (displaying percent saying true) What investments you choose (e.g., what stock, bond, or mutual fund) matters more than how much money you invest 62% If I save 6% of my income toward retirement each year, I ll have enough money to comfortably retire at age 65 43% Having an emergency fund to cover one or two months' living expenses is sufficient 42% A 50 year old shouldn t put any of their retirement money in stocks because stocks can lose money 31% Stocks are generally less risky investments than bonds 25% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 92

93 TEACHING KIDS ABOUT FINANCES

94 Frequency of Financial Discussions Q46. Overall, how often do you discuss any financial topics (e.g., the importance of saving and spending wisely, setting financial goals, budgeting, etc.) with your kids? Never 22% Once a month or less 36% A few times a month 27% Once a week A few times a week Once a day or more 2% 6% 7% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 94

95 Types of Financial Discussions Q47. Which of the following best describes how you discuss financial topics with your kids? I bring things up as they occur 75% The kids usually come to me with a question 16% I set aside time to specifically discuss financial topics 8% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=786 (have financial discussions with kids) 95

96 Reluctance to Discuss Financial Matters Q48. How reluctant are you to discuss financial matters with your kids? Not at all reluctant 34% Not very reluctant 24% Somewhat reluctant 28% Very reluctant 7% Extremely reluctant 7% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 96

97 Importance of Financial Discussions Q49. How often do you discuss each of the following with your kids? (four-point scale displaying frequently or occasionally) The importance of saving 46% 41% How to earn money 40% 46% Maintaining a budget 26% 42% Setting financial goals 23% 45% Giving to charity 18% 42% Not talking about money in public 19% 29% The value of long-term investing Digital payment methods like PayPal and Venmo 7% 14% 20% 31% Frequently Occasionally Market volatility 4% 16% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 97

98 Uncomfortable Discussions Q50. How uncomfortable are you discussing each of the following with your kids? (five-point scale displaying very or extremely) Sex Bullying Drugs Death Money Terrorism Politics 26% 25% 24% 22% 21% 21% 18% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 98

99 Kids Asking Questions Q53. Based on your experience, who asks about money more? Boys 25% Girls 30% No difference 45% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=446 (have both boys and girls) 99

100 Talking to Boys and Girls Q54. Do you find that you spend more time talking about money with your boy(s) or girl(s)? Boys 23% Girls 25% No difference 52% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=446 (have both boys and girls) 100

101 Talking to Boys and Girls Q55. Why do you talk more with your [boy(s) or girl(s)]? (check all that apply) They ask more questions They seem more interested They are older 38% 57% 52% 51% 49% 46% They need more help with money 20% 23% They are more likely to have more money to manage 6% 14% Talk More to: Girls Boys They play on financial games or apps more 6% 10% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=214 (talk more to boys or girls) = Statistically significant =.05 level 101

102 Attitudes About Financial Discussions Q56. How much do you agree or disagree with the following statements? (displaying percent who agree) The conversations I have with my kids about finances make a difference 79% Opportunities to talk to my kids about money and finances come up almost every day 51% I don t always know the best way to talk to my kids about financial topics 48% I often miss opportunities to talk to my kids about money and finances 39% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 102

103 Teaching Moments Q52. Which of the following have you used as an opportunity to teach your kids about money? (check all that apply) Back-to-school shopping on a budget Figuring out how much you get off on sales 52% 51% Figuring out how much tip to leave at a restaurant Discussing the cost of college Discussing why we can t take a bigger vacation Going into a physical bank Figuring out the amount of sales tax you pay 41% 37% 37% 36% 34% Other 2% None of the above 9% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 103

104 Teaching Kids About Money Q56. How much do you agree or disagree with the following statements? (displaying percent who agree) I ve tried various ways to get my kids to save their money instead of spending it all right away to no avail 59% I have a hard time making my kids understand the value of a dollar 52% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 104

105 Kids Finances Q61. Which of the following do your kids have? (check all that apply) Piggy bank 62% Savings account 54% Online/gaming account 25% Checking account Investment account Credit card None of the above 15% 10% 7% 10% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 105

106 Paying Kids Credit Card Bill Q62. Who pays your kid s credit card bill? I do 55% My kid does 31% Other 13% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=67 (kid has credit card) 106

107 Letting Kids Manage Their Own Money Q63. How much do you agree or disagree with the following statements? (displaying percent who agree) I keep a pretty close eye on my kids money and what they re doing with it 78% I let my kids manage their own money 66% I let my kids make bad financial decisions so they can learn from their mistakes 47% When my kids receive money as a gift, I decide what to do with the money 29% The schools do a good job of teaching kids about money 26% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 107

108 Allowing Kids to Manage Their Own Finances Q64. Which of the following do you allow your kids to do on their own? (check all that apply) Decide what they spend their own money on 75% Decide what to save their money for 67% Decide what charities to donate to 27% Manage their own accounts 18% None of the above 7% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 108

109 Parental Attitudes and Behaviors Q65. How much do you agree or disagree with the following statements? (displaying percent who agree) Kids should be taught financial literacy in school 91% I would enroll my kids in a course about money and finances for kids 81% I would be interested in taking a course that teaches financial basics 62% I trust teachers to teach my kids about money and finances 40% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 109

110 ALLOWANCE

111 Allowance Approach Q75. Which of the following best describes your approach to allowance? I give allowance, but kids have to earn it 53% I give allowance without any requirements 5% I don t give allowance 42% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 111

112 Amount of Allowance Q76. Regardless of how often you give allowance, on average, how much do you give per week? $10 or less 60% $11 to $20 22% $21 to $50 12% $51 or more 6% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=591 (give an allowance) 112

113 Age Allowance Begins Q77. How old were your kids when you started giving allowance? 5 or younger % 20% 16% 17% 9 9% 10 13% 11 or older 8% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=591 (give an allowance) 113

114 Allowance Q78. How much do you agree or disagree with the following statements? (displaying percent who agree) I often give my kids additional money outside their allowance 64% My kids usually spend most of their allowance money right away 47% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=591 (Give an allowance) 114

115 RESPONDENT PROFILE

116 Respondent Profile Q2. Region Q1. Age Q3. Gender <35 21% South 38% % 35% Midwest West 19% 26% 51% Women Men 49% % Northeast 18% Q4. Marital Status Q5. Household Income Q6. Race/Ethnicity (check all that apply) Married 74% White/Caucasian 73% Separated/divorced 12% <$50K 40% Hispanic/Latino 12% Single 11% $50K $99,999 39% Black/African American 13% Married (same sex) 2% $100K+ 21% Asian 5% Widow/widower 1% Native American 2% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 116

117 Respondent Profile Q7. Education Level Q8. Employment Status (check all that apply) Q9. # Kids in Household < HS graduate HS graduate 2% 20% Employed full-time Stay at home parent 17% 59% 1 31% Some college 23% Employed part-time 9% 2 41% Assoc. degree Bachelor's degree Graduate degree 14% 14% 27% Self-employed Unemployed Retired Student 7% 6% 4% 2% % 20% T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey N=1,013 (total respondents) 117

118 OBJECTIVE AND METHODOLOGY

119 Objective and Methodology Objective To understand the basic financial knowledge, attitudes, and behaviors of parents of children ages 8-14, and young adults between the ages of Methodology T. Rowe Price commissioned two online surveys, one of parents of children ages 8-14, and one of young adults ages The surveys were fielded from January 16, 2018, through January 23, 2018, with quotas of approximately 50% men and 50% women. A total of 1,014 parents of children ages 8-14 and 1,000 young adults ages participated; the sampling error for samples of 1,000 and 1,014 is +/- 3.1% at the 95% confidence interval. The survey was fielded through ResearchNow. T. Rowe Price 2018 Parents, Kids & Money Survey Parent Survey 119